Exchange-traded funds tracking the financial sector were higher Friday, after the Federal Reserve made a surprising cut to the lending rate to banks, calming the turbulent financial markets. The PowerShares Dynamic Financials ( PFI) was rising 67 cents, or 2.8%, to $24.84. The KBW Regional Banking ( KRE) ETF was up $2.01, or 4.5%, to $46.80. The iShares Dow Jones U.S. Broker-Dealers ( IAI) was adding $2.20, or 4.7%, to $49.90. The Ultra Financials ProShares ( UYG) gained $3.04, or 5.6%, to $57.14. Bundled securities tracking REITs were also rebounding. The iShares FTSE NAREIT Mortgage REITs ( REM) was adding $2.58, or 9.1%, to $30.88. The iShares FTSE NAREIT Residential ( REZ) was rising by $2.06, or 4.7%, to $45.84. The Ultra Real Estate ProShares ( URE) was up $2.28, or 5.6%, to $42.73. Emerging market-related ETFs were also rebounding from the previous session's selloff. The Vanguard Emerging Markets Stock ( VWO) ETF was up $3.20, or 3.9%, to $85.60. The BLDRS Emerging Markets 50 ADR Index ( ADRE) was higher by $1.52, or 3.8%, to $41.62. The iShares MSCI Emerging Markets Index ( EEM) gained $3.99, or 3.4%, to $122.49. On the other hand, ETFs following U.S. Treasuries were among the only losers during a stronger session for the major averages Friday, as traders pulled money from the bond market and dumped it into equities. Recently, the 10-year Treasury note eased 3/32 in price, yielding 4.67%, and the 30-year bond was losing 10/32, yielding 4.98% The SPDR Lehman Long Term Treasury ( TLO) was shedding 21 cents, or 0.4%, to $50.60. The iShares Lehman 3-7 Year Treasury Bond ( IEI) dipped 29 cents, or 0.3%, to $101.58.