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Tom Lydon, ETF Trends (179 clicks)
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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 (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 (PGF), PowerShares Preferred (PGX), SPDR Wells Fargo Preferred Stock (PSK) and iShares S&P U.S. Preferred Stock (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