CUT vs. PIT

Last updated Jun 23, 2026

CUT (Invesco MSCI Global Timber ETF) and PIT (VanEck Commodity Strategy ETF) are both exchange-traded funds - CUT is a Materials fund tracking the Beacon Global Timber Index, while PIT is a Commodities fund actively managed by VanEck. CUT is passively managed, while PIT is actively managed. Over the past 3 years, CUT returned 1.55%/yr vs 19.51%/yr for PIT. At a 0.12 correlation, their price movements are largely independent. Both charge a 0.55% expense ratio.

Performance

CUT vs. PIT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco MSCI Global Timber ETF (CUT) and VanEck Commodity Strategy ETF (PIT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, CUT achieves a -4.36% return, which is significantly lower than PIT's 27.31% return.

CUT

• 1D: -0.62%
• 1M: 3.03%
• YTD: -4.36%
• 6M: -3.02%
• 1Y: -4.86%
• 3Y*: 1.55%
• 5Y*: -3.30%
• 10Y*: 4.69%

PIT

• 1D: -0.75%
• 1M: -10.60%
• YTD: 27.31%
• 6M: 26.74%
• 1Y: 38.33%
• 3Y*: 19.51%
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

CUT vs. PIT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
CUT Invesco MSCI Global Timber ETF	-4.36%	-5.92%	1.82%	8.65%	-0.68%
PIT VanEck Commodity Strategy ETF	27.31%	21.63%	6.77%	-4.54%	1.67%

Correlation

The correlation between CUT and PIT is -0.11, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.11
Correlation (3Y) Calculated over the trailing 3-year period	0.07
Correlation (All Time) Calculated using the full available price history since Dec 22, 2022	0.12

The correlation between CUT and PIT shifts across timeframes, from -0.11 (1 year) to 0.12 (all time), reflecting how their relationship changes across market environments.

Return for Risk

CUT vs. PIT — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

CUT

CUT Risk / Return Rank: 6
CUT Sharpe Ratio Rank: 6
CUT Sortino Ratio Rank: 6
CUT Omega Ratio Rank: 6
CUT Calmar Ratio Rank: 6
CUT Martin Ratio Rank: 6

PIT

PIT Risk / Return Rank: 55
PIT Sharpe Ratio Rank: 54
PIT Sortino Ratio Rank: 48
PIT Omega Ratio Rank: 52
PIT Calmar Ratio Rank: 57
PIT Martin Ratio Rank: 62

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

CUT vs. PIT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco MSCI Global Timber ETF (CUT) and VanEck Commodity Strategy ETF (PIT). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	CUT	PIT	Difference
Sharpe ratio: Return per unit of total volatility	-0.26	1.78	-2.04
Sortino ratio: Return per unit of downside risk	-0.25	2.32	-2.57
Omega ratio: Gain probability vs. loss probability	0.97	1.32	-0.35
Calmar ratio: Return relative to maximum drawdown	-0.25	2.74	-2.99
Martin ratio: Return relative to average drawdown	-0.51	10.88	-11.39

CUT vs. PIT - Sharpe Ratio Comparison

The current CUT Sharpe Ratio is -0.26, which is lower than the PIT Sharpe Ratio of 1.78. The chart below compares the historical Sharpe Ratios of CUT and PIT, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

CUT vs. PIT - Drawdown Comparison

The maximum CUT drawdown since its inception was -70.03%, which is greater than PIT's maximum drawdown of -14.05%. Use the drawdown chart below to compare losses from any high point for CUT and PIT.

Drawdown Indicators

	CUT	PIT	Difference
Max Drawdown Largest peak-to-trough decline	-70.03%	-14.05%	-55.98%
Max Drawdown (1Y) Largest decline over 1 year	-19.62%	-14.05%	-5.57%
Max Drawdown (3Y) Largest decline over 3 years	-22.23%	-14.05%	-8.18%
Max Drawdown (5Y) Largest decline over 5 years	-30.40%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-45.76%	—	—
Current Drawdown Current decline from peak	-22.00%	-14.05%	-7.95%
Average Drawdown Average peak-to-trough decline	-15.28%	-4.07%	-11.21%
Ulcer Index Depth and duration of drawdowns from previous peaks	9.50%	3.59%	+5.91%

Volatility

CUT vs. PIT - Volatility Comparison

Invesco MSCI Global Timber ETF (CUT) has a higher volatility of 4.94% compared to VanEck Commodity Strategy ETF (PIT) at 4.67%. This indicates that CUT's price experiences larger fluctuations and is considered to be riskier than PIT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	CUT	PIT	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.94%	4.67%	+0.27%
Volatility (6M) Calculated over the trailing 6-month period	14.23%	19.36%	-5.13%
Volatility (1Y) Calculated over the trailing 1-year period	18.86%	21.66%	-2.80%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.51%	17.50%	+1.01%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.21%	17.50%	+2.71%

CUT vs. PIT - Expense Ratio Comparison

Both CUT and PIT have an expense ratio of 0.55%.

Dividends

CUT vs. PIT - Dividend Comparison

CUT's dividend yield for the trailing twelve months is around 2.57%, less than PIT's 7.00% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
CUT Invesco MSCI Global Timber ETF	2.57%	2.46%	3.05%	2.44%	2.58%	1.57%	1.65%	2.67%	3.43%	1.57%	2.08%	1.52%
PIT VanEck Commodity Strategy ETF	7.00%	8.92%	3.59%	6.44%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both CUT and PIT in my portfolio?

CUT and PIT have a correlation of -0.11, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, CUT or PIT?

CUT has higher volatility (4.94%) compared to PIT (4.67%). In terms of maximum drawdown, CUT dropped -70.03% vs PIT's -14.05%.

Which ETF is better, CUT or PIT?

On 3-year performance, PIT leads with 19.51% vs 1.55% for CUT. Both ETFs have the same 0.55% expense ratio. On volatility, PIT has been the lower-risk option at 4.67%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, CUT or PIT?

Over the 3-year period, PIT has performed better with a 19.51% return vs 1.55%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, CUT or PIT?

CUT and PIT have the same expense ratio: 0.55% per year.

Which ETF pays a higher dividend yield, CUT or PIT?

PIT has the higher dividend yield at 7.00%, compared with 2.57% for CUT.

What is the main difference between CUT and PIT?

CUT is categorized as Materials, while PIT is Commodities. They also come from different issuers: Invesco and VanEck.

Which has better risk-adjusted returns?

PIT currently has the higher Sharpe Ratio (1.78 vs -0.26), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.