Friday's ETF Winners & Losers

Exchange-traded funds tracking the financial sector were higher Friday, after the Federal Reserve made a surprising cut to the lending rate to banks, calming the turbulent financial markets.

The PowerShares Dynamic Financials (PFI Quote) was rising 67 cents, or 2.8%, to $24.84. The KBW Regional Banking (KRE Quote) ETF was up $2.01, or 4.5%, to $46.80. The iShares Dow Jones U.S. Broker-Dealers (IAI Quote) was adding $2.20, or 4.7%, to $49.90. The Ultra Financials ProShares (UYG Quote) gained $3.04, or 5.6%, to $57.14.

Bundled securities tracking REITs were also rebounding. The iShares FTSE NAREIT Mortgage REITs (REM Quote) was adding $2.58, or 9.1%, to $30.88. The iShares FTSE NAREIT Residential (REZ Quote) was rising by $2.06, or 4.7%, to $45.84. The Ultra Real Estate ProShares (URE Quote) was up $2.28, or 5.6%, to $42.73.

Emerging market-related ETFs were also rebounding from the previous session's selloff. The Vanguard Emerging Markets Stock (VWO Quote) ETF was up $3.20, or 3.9%, to $85.60. The BLDRS Emerging Markets 50 ADR Index (ADRE Quote) was higher by $1.52, or 3.8%, to $41.62. The iShares MSCI Emerging Markets Index (EEM Quote) gained $3.99, or 3.4%, to $122.49.

On the other hand, ETFs following U.S. Treasuries were among the only losers during a stronger session for the major averages Friday, as traders pulled money from the bond market and dumped it into equities. Recently, the 10-year Treasury note eased 3/32 in price, yielding 4.67%, and the 30-year bond was losing 10/32, yielding 4.98%

The SPDR Lehman Long Term Treasury (TLO Quote) was shedding 21 cents, or 0.4%, to $50.60. The iShares Lehman 3-7 Year Treasury Bond (IEI Quote) dipped 29 cents, or 0.3%, to $101.58.