Small-Cap, Tech ETFs: The Comeback Kids | ETF Trends

Making a one-eighty from the sell-off over the past few months, small capitalization and technology sector exchange traded funds have been outperforming as investors regain their risk appetite.

The PowerShares QQQ (NasdaqGS: QQQ), which tracks the Nasdaq-100 Index, has increased 2.6% over the past month. The broad tech ETF iShares U.S. Technology ETF (NYSEArca: IYW) is up 2.3% over the last month. [Momentum Tech ETF Rebounds in Style]

Additionally, the iShares Russell 2000 ETF (NYSEArca: IWM), which follows the Russell 2000 index of small-cap stocks, jumped 3.7% over the past month. [Don’t Let New Highs Scare You Away From Stock ETFs]

In comparison, the S&P 500 Index has gained 5% over the same period.

The Nasdaq Composite touched a 14-year high this week while the Russell 2000 is 2% off from its record high after falling at least 8% earlier this year, Bloomberg reports.

“We’re seeing a lot of market appreciation coming from the flow back into risk assets,” Brad McMillan, the chief investment officer for Commonwealth Financial Network, said in the article. “That’s pure risk-on behavior. We saw that reverse as people got scared and we’re seeing it re-reverse as people get more confident.”