A small-cap stock picking strategy could enhance returns at present.

Stock picking may be the key to getting exposure to small caps.

Rob Harvey, the person behind the index, employs an actively managed strategy when purchasing the group. He aims to steer clear of underperforming small caps that are negatively impacting the index.

""Removing companies that are unprofitable can significantly improve returns in the small cap universe," the firm's co-head of product specialists stated on CNBC's "ETF Edge" this week."

The small-cap index has risen more than 12% this year, while the broader market has increased approximately 23%.

According to the Dimensional Fund Advisors website, as of Thursday, the fund's top holdings were , , and . However, its top holding is cash and cash equivalents, which accounts for 1.13% of the fund.

BNY Mellon's global head of ETFs, Ben Slavin, observes that investors are increasingly seeking actively managed products to exclude underperforming small-cap stocks.

""Small caps are gaining investor sentiment, as seen in the numbers and the flow of dollars, and this strategy is benefitting," said Slavin."

The Russell 2000 is outperforming the Dimension U.S. Small Cap ETF by more than one percent this year as of Friday's close.