TradingMarkets 7 ETFs You Need to Know for Tuesday

Exchange-traded funds followed the markets and sectors they track on Monday, leading to significant pullbacks in long and leveraged long ETFs and sizable gains in short and leveraged short funds. Emerging market tracking ETFs were among the hardest hit, while sector-based funds in the U.S. such as those linked to finance and energy accounted for some of the major losses of the day.

Here are 7 ETFs You Need to Know for Tuesday.

The ProShares UltraShort Financials exchange-traded fund, SKF (SKF | Quote | Chart | News | PowerRating), soared by more than 9% on Monday, though the fund finished significantly off its highs. SKF closed above its 200-day moving average for the first time in more than 10 days.

The Dow DIAMONDS, DIA (DIA | Quote | Chart | News | PowerRating), lost more than 4% on Monday as the Dow industrials lost more than 400 points.

Slowing economies world-wide continue to take their toll on the demand for basic materials, as materials funds such as the Select Basic Materials Sector SPDRS, XLB (XLB | Quote | Chart | News | PowerRating), which lost another 6%. Conversely, the ProShares UltraShort Basic Materials exchange-traded fund, SMN (SMN | Quote | Chart | News | PowerRating), advanced more than 12%, though off its highs.

Technology stocks also came under heavy selling on Monday, leading the iShares Dow Jones U.S. Technology Sector Index fund, IYW (IYW | Quote | Chart | News | PowerRating) lower by more than 5% on Monday.

Exchange-traded funds linked to overseas stock markets were among those most aggressively sold on Monday, with the India Fund, IFN (IFN | Quote | Chart | News | PowerRating) losing more than 16% and the iShares FTSE/Xinhua 25 index ETF, FXI (FXI | Quote | Chart | News | PowerRating) down more than 7%.

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David Penn is Editor in Chief at TradingMarkets.com.