Market Correction Has Not Spoiled ETF Investors' Appetite

“With the volatility, there’s an opportunity to make a quick buck,” Balchunas added. “There are some people excited about all this because, for a while, everything moved very steadily with no volatility. You can see the trader crowd running around trying all sorts of things.”

The pick up in these areas may also reflect investors’ renewed appetite for risk after a potentially overdone sell-off.

“Demand for small-cap funds is a good indicator of U.S. risk tolerance as these funds provide diversification to up-and-coming companies,” Todd Rosenbluth, director of ETF research at CFRA Research, gold Bloomberg. “They are more exposed to a strong U.S. economy and less connected to overseas trends.”

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