Risk On: Small-Cap ETFs Leading the Way So Far in August | ETF Trends

Bulls like what they see in small-cap ETFs that are outperforming the S&P 500 so far this month after lagging in July.

The small-cap iShares Russell 2000 (NYSEArca: IWM) is nudging ahead of SPDR S&P 500 (NYSEArca: SPY) so far in August. [Small-Cap ETFs Underperforming in July]

The leadership of small-cap ETFs suggests investors are growing more comfortable taking on risk as fear over the European debt crisis recedes somewhat.  [Volatility ETFs: It’s Quiet Out There…Too Quiet]

Year to date, however, the small-cap IWM is trailing SPY with a gain of 9.3% versus 12.9% for the S&P 500 fund, according to Morningstar.