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After getting pummeled in the swift market correction, preferred stock exchange traded funds have staged a comeback as investors seeking attractive yields and low valuations pounce on the ETFs.

On Monday, bank preferred stocks experienced their worst single-day sell-off since 2009, with big losers like Bank of America (NYSE:BAC) seeing common shares down 20% during trading, reports Andrew Bary for Barron’s. However, while there is lingering concern over the banking system, the bank-preferred market is beginning to show some lucrative yields again.

The largest ETFs in the category include PowerShares Financial Preferred (NYSEARCA:PGF), PowerShares Preferred (NYSEARCA:PGX), SPDR Wells Fargo Preferred Stock (NYSEARCA:PSK) and iShares S&P U.S. Preferred Stock (NYSEARCA:PFF). The iShares ETF had a 12-month yield of 7.3% as of July 29, according to manager BlackRock.

PowerShares Financial Preferred

[Click to enlarge]

Max Chen contributed to this article.

Source: Preferred Stock ETFs Lure Yield Hunters