The markets and exchange traded funds (ETFs) are damaged from subprime and credit storms this summer, but ETFs seem to have withstood the disasters better than most.  Broad-based ETFs, such as SPDRs (SPY), remained relatively flat while some hedge funds, for example, lost billions.

However, there were a few sector-specific ETFs that were severely hit, such as iShares FTSE NAREIT Mortgage REITs (REM). It invests in firms that specialize in lending for mortgages. Launching May 4, it lost 38% through Aug. 24, according to Will McClatchy for ETFZone.com. Because they tend to be highly diversified, many of the ETFs that were hit have been rebounding. Several ETFs had holdings in sinking stocks such as Countrywide (CFC), but mostly in small amounts.

Tags: Financial, REITs, Sector ETFs