More pessimism over the health of the banking sector led a Monday selloff that knocked back a three-day market rally. Exchange-traded funds that rode indexes and sectors up sharply last week suffered some sharp reversals. Broad index funds like the SPDR S&P 500 fund (SPY) and sector funds such as the SPDR Financial Select fund (XLF) were among the most heavily traded tickers. To see a complete rundown on Monday s trading session see our market story.

Winners

With sentiment clearly against the market, the ProShares Short S&P 500 fund (SH) was one of the few unleveraged plays that saw gains on Monday, rising 0.8%. The iPath S&P 500 VIX Short-Term Futures (VXX) also clung to slim gains, rising 0.6%.

Losers

Gold s plunge to just under $872 an ounce knocked back shares of the Market Vectors Gold Miners fund (GDX) by 4.8% Monday. The SPDR KBW Bank ETF (KBE) slid 3.7% after Calyon Securities analyst Michael Mayo started coverage on 11 major banks with a note putting Sell and Underperform ratings on the stocks.

Monday s Industry Headlines

Launching Pad
Vanguard on Monday launched an international small-cap ETF that tracks the FTSE Global Small Cap ex-U.S. Index. The Vanguard FTSE All-World ex-US Small-Cap ETF holds up to 2,100 different companies, one of the broadest ETFs in the United States. It has an expense ratio of 0.38%.

FaithShares, an Oklahoma City, Okla., company, is seeking permission from the Securities and Exchange Commission to launch a quintet of faith-based ETFs that it says will reflect the spiritual tenets of different Christian sects. The company proposed the FaithShares Baptist Values Fund, Catholic Values Fund, Christian Values Fund, Lutheran Values Fund and Methodist Values Fund, advancing the number of ETFs that follow socially responsible investment principles. Barclays sponsors the iShares KLD 400 Social Index (DSI) and the iShares KLD Select Social Index (KLD).

Data Point
Investors put $8 billion into exchange-traded funds in March, according to data from the National Stock Exchange. The inflow trend reverses a $5.8 billion net outflow from February, when money was pulled from the S&P 500 SPDRs (SPY) and the PowerShares QQQ (QQQQ) funds. The 752 ETFs listed in the United States had $484.6 billion in assets at the end of March, up from $456.3 billion in the previous month. There was a net reduction of four funds in March.

Tuesday s Notebook

Earnings and Conference Calls
Alcoa, Bed Bath & Beyond, International Speedway, Lukoil, Mosaic, Pier 1 Imports, Ruby Tuesday

Economic Data
7:45 a.m. ICSC Chain Store Sales Index
8:55 a.m. Redbook Retail Sales Index
2:00 p.m. March Federal Reserve FOMC Minutes
3:00 p.m. Feb. Consumer Credit
5:00 p.m. ABC/Washington Post Consumer Confidence

A look at how the industry's most popular ETFs did on Monday: