Financial-sector exchange-traded funds were among the worst losers of a holiday-shortened week on Wall Street as several downgrades and fears of more writedowns stoked additional credit fears.
Ultra Financial ProShares
ETF lost 6.7% to $42. The
Financial Select Sector SPDR
ETF fell 3.8% to $29.35. The
iShares Dow Jones U.S. Broker-Dealers
ETF was lower by 2.2% to $48.83.
Stocks in the group were hit hard Monday after Goldman Sachs downgraded
to sell from neutral on worries about its collateralized debt obligation writedowns. Goldman also cut its price targets on a number of names in the sector, including
said it will write down $1.1 billion because of its exposure to the U.S. subprime mess, as well as asset-backed CDOs.
said Tuesday it may have to raise new funds and chop its dividend in half after posting a $2 billion loss for the third quarter. Freddie, as well as counterpart
, lost significant ground over the course of the week.
ETFs tracking homebuilders were also weak. The
iShares Dow Jones U.S. Home Construction
ETF sank 9.4% to $16.96. The
SPDR S&P Homebuilders
ETF shed 8.5% to $18.33.
On the other hand, energy-related ETFs were among the best performers as crude topped $99 a barrel for the first time.
iPath S&P GSCI Crude Oil Index
advanced 4.4% to $56.86. The
United States Oil
added 3.9% to $76.76. The
iShares Dow Jones U.S. Oil Equipment Index
was up 1.6% to $60.84.
Bundled securities tracking gold futures were also higher for the week. The
iShares Comex Gold Trust
ETF rose 4.9% to $81.50. The
streetTRACKS Gold Shares
ETF finished up 4.7% to $81.39.