CUT vs. VTI
Compare and contrast key facts about Invesco MSCI Global Timber ETF (CUT) and Vanguard Total Stock Market ETF (VTI).
CUT and VTI are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. CUT is a passively managed fund by Invesco that tracks the performance of the Beacon Global Timber Index. It was launched on Nov 9, 2007. VTI is a passively managed fund by Vanguard that tracks the performance of the CRSP US Total Market Index. It was launched on May 24, 2001. Both CUT and VTI are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: CUT or VTI.
Key characteristics
| CUT | VTI | |
|---|---|---|
| YTD Return | -0.35% | 5.17% |
| 1Y Return | 10.31% | 22.42% |
| 3Y Return (Ann) | -3.70% | 6.23% |
| 5Y Return (Ann) | 5.37% | 12.59% |
| 10Y Return (Ann) | 4.82% | 11.79% |
| Sharpe Ratio | 0.71 | 1.86 |
| Daily Std Dev | 14.98% | 12.05% |
| Max Drawdown | -70.03% | -55.45% |
| Current Drawdown | -15.16% | -4.34% |
Correlation
The correlation between CUT and VTI is 0.77, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
CUT vs. VTI - Performance Comparison
In the year-to-date period, CUT achieves a -0.35% return, which is significantly lower than VTI's 5.17% return. Over the past 10 years, CUT has underperformed VTI with an annualized return of 4.82%, while VTI has yielded a comparatively higher 11.79% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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CUT vs. VTI - Expense Ratio Comparison
CUT has a 0.55% expense ratio, which is higher than VTI's 0.03% expense ratio.
Risk-Adjusted Performance
CUT vs. VTI - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco MSCI Global Timber ETF (CUT) and Vanguard Total Stock Market ETF (VTI). 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.
Dividends
CUT vs. VTI - Dividend Comparison
CUT's dividend yield for the trailing twelve months is around 2.45%, more than VTI's 1.42% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
CUT Invesco MSCI Global Timber ETF | 2.45% | 2.44% | 2.58% | 1.57% | 1.65% | 2.67% | 3.43% | 1.57% | 2.08% | 1.52% | 2.83% | 1.39% |
VTI Vanguard Total Stock Market ETF | 1.42% | 1.44% | 1.66% | 1.21% | 1.42% | 1.78% | 2.04% | 1.71% | 1.92% | 1.98% | 1.76% | 1.74% |
Drawdowns
CUT vs. VTI - Drawdown Comparison
The maximum CUT drawdown since its inception was -70.03%, which is greater than VTI's maximum drawdown of -55.45%. Use the drawdown chart below to compare losses from any high point for CUT and VTI. For additional features, visit the drawdowns tool.
Volatility
CUT vs. VTI - Volatility Comparison
Invesco MSCI Global Timber ETF (CUT) and Vanguard Total Stock Market ETF (VTI) have volatilities of 3.92% and 4.01%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.