Tuesday's ETF Winners & Losers

Overseas-related exchange-traded funds were among the worst performers Tuesday, as Asian indices sank overnight.

A day after finishing solidly higher, Hong Kong's Hang Seng Index fell nearly 1%, and Japan's Nikkei 2005 Index slipped 0.2%. Other indices in Thailand, Singapore and Indonesia finished lower as well.

The iShares FTSE/Xinhua China 25 Index (FXI Quote) fell $10.02, or 6.6%, to $143.05. The SPDR S&P China (GXC Quote) was losing $5.15, or 6.4%, to $75.35. The PowerShares Golden Dragon Halter USX China (PGJ Quote) was lower by $1.40, or 5.1%, to $26.39. The iShares MSCI Singapore Index (EWS Quote) was sliding by 49 cents, or 3.7%, to $12.81.

Homebuilders and real estate ETFs were suffering after the latest data on the health of the housing sector. Shortly before the opening bell, the S&P/Case-Schiller Index of home prices showed a 3.2% drop during the second quarter, the biggest decrease since the index began 20 years ago. The release comes one day after a disappointing report on existing home sales and inventories sank homebuilder and real estate ETFs.

The iShares Dow Jones U.S. Home Construction (ITB Quote) was down 96 cents, or 4.1%, to $22.66. The SPDR S&P Homebuilders (XHB Quote) gave back 78 cents, or 3.2%, to $23.74. The Ultra Real Estate ProShares (URE Quote) gave back $1.33, or 3.1%, to $41.39. The iShares FTSE NAREIT Mortgage REITs (REM Quote) was off 66 cents, or 2.2%, to $29.59.

Financial ETFs were also under pressure after Merrill Lynch downgraded Citigroup (C Quote), Lehman Brothers (LEH Quote) and Bear Stearns (BSC Quote) to neutral from buy.

The Ultra Financials ProShares (UYG Quote) was shedding $2.43, or 4.3%, to $54.25. The KBW Bank (KBE Quote) ETF was down $1.46, or 2.7%, to $52.09. The iShares Dow Jones U.S. Broker-Dealers (IAI Quote) was falling $1.17, or 2.3%, to $48.76.

On the other hand, bundled securities following U.S. Treasuries were among few winners of the day, as traders made their way out of equities and moved into bonds. The 10-year note was adding 5/32 in price, yielding 4.55%, and the 5-year bond was up 6/32, yielding 4.29%.

The iShares Lehman 7-10 Year Treasury Bond (IEF Quote) tacked on 31 cents, or 0.4%, to $83.90. The iShares Lehman 3-7 Year Treasury Bond (IEI Quote) was up 34 cents, or 0.3%, to $102.05. The iShares Lehman 10-20 Year Treasury Bond (TLH Quote) was higher by 38 cents, or 0.4%, to $101.18.