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This Week's ETF Winners & Losers

Funds tracking Internet and software stocks rise.

Exchange-traded funds tracking Internet and software stocks were the biggest winners of the week, rising on the back of M&A activity in the software sector.

On Friday,

BEA Systems

surged 38% after software giant

Oracle

(ORCL) - Get Report

made an unsolicited bid for the company.

The

Internet Infrastructure HOLDRs

(IIH)

jumped 12% over the five sessions to $5.85. The

First Trust Dow Jones Internet Index

(FDN) - Get Report

added 3.9% to $27.94. The

iShares S&P GSTI Software

(IGV) - Get Report

ETF ended up 3.9% at $53.31.

ETFs tracking Asia's markets were also among the top winners of the week thanks to big gains overseas. Over the five sessions, Hong Kong's Hang Seng rose 4.6%, and Japan's Nikkei climbed 1.6%.

The

iShares FTSE/Xinhua China 25 Index

(FXI) - Get Report

advanced 5.5% to $202.20. The

SPDR S&P China

(GXC) - Get Report

ETF added 5.2% to close at $103.81. The

PowerShares Golden Dragon Halter USX China

(PGJ) - Get Report

gained 3.4% to $35.78.

On the other hand, homebuilding and construction-related ETFs were among the worst performers of the week as several builders suffered from an analyst downgrade.

Wachovia lowered its 2007 and 2008 earnings estimates for 13 companies in the group, noting escalating cancellation rates and ineffective promotions. Among those cut were

Centex

(CTX)

,

Beazer Homes

(BZH) - Get Report

,

Lennar

TST Recommends

(LEN) - Get Report

,

Toll Brothers

(TOL) - Get Report

,

Hovnanian

(HOV) - Get Report

and

D.R. Horton

(DHI) - Get Report

.

For the week, the

iShares Dow Jones U.S. Home Construction

(ITB) - Get Report

ETF sank 4.7% to $21.72. The

SPDR S&P Homebuilders

(XHB) - Get Report

ETF shed 2% to $22.90.

Chip stocks were also among the week's worst decliners as traders booked profits on several names that have enjoyed a recent run-up.

Among the losers were

KLA-Tencor

(KLAC) - Get Report

,

Xilinx

(XLNX) - Get Report

and

Altera

(ALTR) - Get Report

, all of which fell 4% or more for the week.

The

Semiconductor HOLDRs

(SMH) - Get Report

eased 5.5% to $36.34. The

Ultra Semiconductor ProShares

(USD) - Get Report

ETF slipped 3.4% to $86.11. The

PowerShares Dynamic Semiconductors

(PSI) - Get Report

ETF was down 2.6% to $18.63.