A.I.M. Users Bulletin Board

[AIMster]

What do you think of VCIT Vanguard Corp Interm or XLU utilites ETF. Both have a about a 4% yield.

The Vanguard version is somewhat more diversified as to where the money is coming from:

Asset-Backed          	        0.0% 
 Commercial Mortgage-Backed	0.0% 
 Finance	               36.9% 
 Foreign                 	0.0% 
 Government Mortgage-Backed	0.0% 
 Industrial	               51.5% 
 Other	                        0.0% 
 Treasury/Agency	        0.5% 
 Utilities	               11.1% 
 Total	                      100.0%

Whereas the XLU will be 100% concentrated in utilities.

By way of comparison:



(Image courtesy of StockCharts).


It looks like over the recent period, at least, XLU would be more "AIM friendly" than VCIT. So if you want the single sector concentration with perhaps more volatility, XLU might be the choice. On the other hand if you don't want all the eggs in the single basket, VCIT might work better.

Best,

AIMster