# XBM, iShares S&P/TSX Global Base Metals Index ETF



## Freedom2022 (Oct 14, 2021)

Hi all,

XBM was discussed in the forum a while back.
At present time, it has dividend yield close to 5%.
Any thoughts?
Thanks.


----------



## Ponderling (Mar 1, 2013)

I have not investigated this ETF.
I hold TECK.B, FM, LUN, K, LIF and CCO to get my materials exposure. 
A lot of these holdings have international exposure in their operations. 

I am not sure how the divvy of the etf gets up to 5%. 

Most of my makes from the above holdings comes from fatten and lean the holdings as they cycle up and down, depending on where they are in the the larger economic cycle at a particular time.


----------



## Covariance (Oct 20, 2020)

@Freedom2022 
The last distribution annualized is 4.94%. This may or may not be a good forecast of future distributions and would need to be validated if it is fundamental to your investment. A quick and dirty qualification can be made by looking at the dividend policy of the top 10 holdings and an assessment of sustainability by looking at their cash flow prospects. No options on this ETF so income can not be supplemented with a covered call strategy.

As @Ponderling points out base metals are highly correlated to investor expectations of global economic growth. I have invested in this ETF for this propose in the past when timing a turn around.


----------



## AltaRed (Jun 8, 2009)

A 10 year chart demonstrates its cyclical nature. It is a trade, not a buy and hold. Current percentage yield means very little on a cyclical stock. It is more important to look at the actual annual distributions.


----------

