This Week's ETF Winners & Losers

Financial-sector funds sink.
Author:
Publish date:

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.

The

Ultra Financial ProShares

(UYG) - Get Report

ETF lost 6.7% to $42. The

Financial Select Sector SPDR

(XLF) - Get Report

ETF fell 3.8% to $29.35. The

iShares Dow Jones U.S. Broker-Dealers

(IAI) - Get Report

ETF was lower by 2.2% to $48.83.

Stocks in the group were hit hard Monday after Goldman Sachs downgraded

Citigroup

(C) - Get Report

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

Merrill Lynch

(MER)

,

Morgan Stanley

(MS) - Get Report

and

E*Trade

(ETFC) - Get Report

.

Also,

Swiss Re

said it will write down $1.1 billion because of its exposure to the U.S. subprime mess, as well as asset-backed CDOs.

Freddie Mac

(FRE)

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

Fannie Mae

(FNM)

and

Countrywide Financial

(CFC)

, lost significant ground over the course of the week.

ETFs tracking homebuilders were also weak. The

iShares Dow Jones U.S. Home Construction

(ITB) - Get Report

ETF sank 9.4% to $16.96. The

SPDR S&P Homebuilders

(XHB) - Get Report

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.

The

iPath S&P GSCI Crude Oil Index

(OIL) - Get Report

advanced 4.4% to $56.86. The

United States Oil

(USO) - Get Report

added 3.9% to $76.76. The

iShares Dow Jones U.S. Oil Equipment Index

(IEZ) - Get Report

was up 1.6% to $60.84.

Bundled securities tracking gold futures were also higher for the week. The

iShares Comex Gold Trust

(IAU) - Get Report

ETF rose 4.9% to $81.50. The

streetTRACKS Gold Shares

(GLD) - Get Report

ETF finished up 4.7% to $81.39.