ETFs focused on Italy and Spain tanked yesterday amid deadlocked elections in Italy, but markets overall were higher as optimism that the global recovery is becoming more stable outweighed concerns about the economically delicate countries in southern Europe.

The iShares MSCI Italy Capped Index Fund (NYSEArca: EWI) fell 5.71 percent on Tuesday, Feb. 26, while  the iShares MSCI Spain Capped ETF (NYSEArca: EWP) lost 4.10 percent as well.

Still, while southern Europe is holding back recovery for the eurozone, Italy’s and Spain’s challenges aren’t exactly affecting markets the way they were up until mid-2012. The S&P 500 rose 9.09 points, or 0.61 percent, to close at 1,496.94.

Moreover, yesterday’s top-performing U.S.-listed ETF was the iShares Dow Jones U.S. Home Construction Index Fund (NYSEArca: ITB), casting a positive light on a sector that was at the center of the 2008 market crash and has been showing signs of recovery in the past several months. ITB rose 3.84 percent in yesterday’s session.

The rising markets and net inflows meanwhile lifted total U.S.-listed ETF assets to $1.413 trillion—a bit shy of the $1.437 trillion record reached earlier this month.

Top 10 1-Day Performers, Excluding Leverage/Inverse Funds and <1,000 Shares Traded

Disclaimer: All data as of 6 a.m. Eastern time the date the article is published. Data is believed to be accurate; however, transient market data is often subject to subsequent revision and correction by the exchanges.