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This Week's ETF Winners & Losers

Financial funds are among the worst performers.

Financial exchange traded-funds were among the worst performers this week as traders questioned whether the rate cut from the

Federal Reserve

and a liquidity injection by the U.S. central bank and other monetary authorities would do anything to ease the pain in the credit markets.

For the week, the

TST Recommends

Ultra Financial ProShares

(UYG) - Get Report

ETF slumped 12% to $41.68. The

Financial Select Sector SPDR

(XLF) - Get Report

ETF lost 5.5% to $29.48. The

iShares Dow Jones U.S. Broker-Dealers

(IAI) - Get Report

ETF was lower by 1.7% to $50.68.

A number of individual stocks were in the headlines during the past few days.

Washington Mutual

(WM) - Get Report

slashed its dividend and said it would try to raise $2.5 billion from a preferred stock sale in order to protect its balance sheet from the downturn in the credit market.

Then

Freddie Mac's

CEO said the government-sponsored mortgage buyer could lose an added $5.5 billion to $7.5 billion in the coming years if the housing market stays weak and loan defaults increase.

Additionally, Merrill Lynch and Lehman Brothers downgraded several financial names, including

Bank of America

(BAC) - Get Report

,

UBS

(UBS) - Get Report

and

JPMorgan Chase

(JPM) - Get Report

.

Homebuilders were also among the worst performers of the week following the Fed's decision to reduce interest rates by 25 basis points. The Fed removed from its statement accompanying the decision language that the risks of inflation and an economic downturn were roughly balanced, leaving some to believe it would be the end of rate cuts by the central bank.

The

SPDR S&P Homebuilders

(XHB) - Get Report

ETF lost 6.4% to end the week at $19.27. The

iShares Dow Jones U.S. Home Construction

(ITB) - Get Report

ETF gave back 6.2% to $17.82.

Retail-related ETFs were also among the losers of the week, despite a better-than-expected government read on sales in November. The Commerce Department said Thursday that sales climbed 1.2% last month, the largest increase in six months, compared with expectations of a 0.7% rise. Excluding autos, retail sales were up 1.8% last month, the biggest advance in nearly two years.

Still, that did little to outweigh declines in shares of

Costco

(COST) - Get Report

,

Home Depot

(HD) - Get Report

,

Best Buy

(BBY) - Get Report

and

Target

(TGT) - Get Report

.

The

SPDR S&P Retail

(XRT) - Get Report

ETF was down 6.7% to $33.79. The

Retail HOLDRs

(RTH) - Get Report

lost 5.6% to end the week at $93.18. The

PowerShares Dynamic Retail

(PMR) - Get Report

ETF fell 4% to $15.90.

Energy-related ETFs were among the few winners as crude added 3.4% over the five sessions, ending at $91.27 a barrel.

The

PowerShares DB Oil

(DBO) - Get Report

was up 4.5% to $34.55. The

United States Oil

(USO) - Get Report

added 4.1% to $72.25. The

iPath S&P GSCI Crude Oil Index

(OIL) - Get Report

rose 3.9% to $53.31.