Tuesday's ETF Winners & Losers

Funds following European markets were among the top performers Tuesday.
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Exchange-traded funds tracking European bourses were among the best performers of Tuesday's session, as shares of U.K. lender

Northern Rock

rebounded.

Northern Rock had pressured European indices during the prior two sessions after the lender sought emergency funding from the Bank of England, a sign that the subprime mortgage mess was spilling into overseas markets. However, shares were rallying 10%, and London's FTSE 100, the CAC 40 in Paris and Germany's Xetra Dax were all up 1% or more.

The

iShares MSCI Spain Index

(EWP) - Get Report

was adding $1.39, or 2.5%, to $57.06. The

iShares MSCI France Index

(EWQ) - Get Report

was up 64 cents, or 1.8%, to $36.33. The

iShares MSCI United Kingdom Index

(PEH)

rose 28 cents, or 1.2%, to $23.48. The

iShares S&P Europe 350 Index

(IEV) - Get Report

was higher by $1.82, or 1.6%, to $113.12.

Bundled securities tracking the financial sector were also higher, thanks to strong earnings from

Lehman Brothers

(LEH)

, as well as expectations of an interest rate cut by the

Federal Reserve

. Lehman beat Wall Street's forecasts by 7 cents a share, and the stock was up 3.5%.

The Federal Open Market Committee, the central bank's policymaking arm, is widely expected to cut the overnight Fed funds rate when it announces its decision at 2:15 p.m. EDT, a move that will help liquidity problems in tightening credit markets.

The

Ultra Financials ProShares

(UYG) - Get Report

was rising $1.23, or 2.3%, to $55.78. The

iShares Dow Jones U.S. Financial Services

(IYG) - Get Report

was adding $1.60, or 1.3%, to $121.76. The

First Trust Financials AlphaDEX

(FXO) - Get Report

ETF was recently up 28 cents, or 1.6%, to $17.64.

An earnings beat by electronics retailer

Best Buy

(BBY) - Get Report

was supporting a rise in retail-related ETFs. Before the opening bell, Best Buy handily beat second-quarter earnings targets and also raised its full-year profit forecast, boosting shares by 4.4%.

The

SPDR S&P Retail

(XRT) - Get Report

was recently climbing 78 cents, or 2%, to $39.20. The

PowerShares Dynamic Retail

(PMR) - Get Report

was up 31 cents, or 1.7%, to $18.08. The

Retail HOLDRs

(RTH) - Get Report

advanced $1.42, or 1.4%, to $101.48.

On the other hand, the

United States Natural Gas

(UNG) - Get Report

ETF was the worst decliner of the session, as natural gas futures fell 19 cents to $6.46 per million British thermal units. The ETF was lower by $1.05, or 2.6%, to $39.41.