Yeah, I don't understand it. And, the spread widened about another 1.18% yesterday (NAV up .97%, share price down .21%). XLU was up .94% too.
From what I see, it would take a 20 year low investment grade bond to come anywhere near the current return on UTG. Sure, the price of UTG can fall more, but so can the price of that bond if interest rates continue to rise and while the components of UTG can raise dividends (probably slowly) to compensate for inflation if need be, that bond isn't going to increase its interest rate. UTG is a more liquid asset than that bond too, IMO.
I think UTG is a bargain at these discount prices and would buy some if I wasn't already so over weighted in the thing already -- but it is getting tempting, maybe just a little more. Either I'm an idiot or my fellow investors are idiots -- guess that I'll find out which is which over the next few months.