BOSTON (MarketWatch) -- Exchange-traded funds tracking emerging markets stocks fell sharply Monday as investors sold risky assets on fears the deepening financial crisis could trigger a global economic slowdown.

A huge ETF tied to an index of developing markets, the nearly $19 billion iShares MSCI Emerging Markets Index Fund EEM, -0.06% , was off about 10% in midday trading.

On Monday, U.S. investors awoke to reports of a steep sell-off in European markets after more countries there were forced to provide bailouts for struggling banks. A meeting of the European Union's top leaders over the weekend offered no coordinated plan for propping up the roiled banking system.

The Vanguard European Stock ETF VGK, -0.09% was off more than 6% in recent action. The iShares MSCI United Kingdom Index Fund EWU, -0.62% lost 7%, reflecting the weakness in Great Britain. ETFs listed in the U.S. continue to trade even when the underlying overseas markets close.

However, the hardest-hit European ETF on Monday was Market Vectors Russia ETF RSX, -0.52% , which was off about 20%. In Moscow, the sell-off in Russian stocks promoted officials to again suspend trading. See Emerging Markets Report.

Market Vectors Russia ETF, which is managed by Van Eck Global, tracks an index of stocks and depositary receipts of public companies domiciled in Russia, according to the prospectus. With trading in Russian markets suspended, the ETF appeared to be one of the few ways to trade that market.

Adam Phillips, managing director of ETFs at Van Eck, in a telephone interview Monday said trading volume in Market Vectors Russia ETF has picked up recently, particularly on days when trading in Russian markets has been suspended.

Of the ETF's 37 holdings, six are American Depositary Receipts listed in New York, 26 are Global Depositary Receipts that trade in London, and seven are local stocks listed on Russian markets.

"It's one of the only index products for Russia that continues to trade," Phillips said. "We've received no reports from traders or market makers about difficulty trading Market Vectors Russia ETF. Investors can access Russian markets [with the ETF] even when things aren't trading perfectly over there."

Other emerging markets ETFs were deep in the red Monday. Claymore/BNY BRIC ETF EEB -- a portfolio tracking a basket of stocks in Brazil, Russia, India and China -- dropped more than 12%. The iShares MSCI Brazil Index Fund EWZ, -1.05% was off about 15%.

Financial stocks around the world traded lower as investors worried intensifying lending problems could tip the global economy into recession. The iShares S&P Global Financials Sector Index Fund IXG, -1.31% lost 8%.

Meanwhile, oil prices fell and gold rallied as investors reacted to growing worries for a worldwide slowdown. SPDR Gold Shares GLD, +0.84% was up 3%, but U.S. Oil Fund USO, -3.45% slipped 4%.

U.S. equities didn't escape the carnage. SPDR S&P 500 ETF SPY, -0.54% , the largest ETF by assets, lost 6% at last check.

Still, some bearish ETFs profited handsomely from the damage in stocks and commodities markets on Monday.