CUT vs. WOOD

Last updated Jun 23, 2026

CUT (Invesco MSCI Global Timber ETF) and WOOD (iShares Global Timber & Forestry ETF) are both Materials funds - CUT tracks the Beacon Global Timber Index while WOOD tracks the S&P Global Timber & Forestry Index. Both are passively managed. Over the past 10 years, CUT returned 4.69%/yr vs 6.12%/yr for WOOD. Their correlation of 0.91 suggests significant overlap in exposure. CUT charges 0.55%/yr vs 0.46%/yr for WOOD.

Performance

CUT vs. WOOD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco MSCI Global Timber ETF (CUT) and iShares Global Timber & Forestry ETF (WOOD). 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 higher than WOOD's -5.94% return. Over the past 10 years, CUT has underperformed WOOD with an annualized return of 4.69%, while WOOD has yielded a comparatively higher 6.12% annualized 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%

WOOD

• 1D: -0.26%
• 1M: 3.05%
• YTD: -5.94%
• 6M: -4.22%
• 1Y: -5.09%
• 3Y*: 0.46%
• 5Y*: -2.94%
• 10Y*: 6.12%

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

CUT vs. WOOD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
CUT Invesco MSCI Global Timber ETF	-4.36%	-5.92%	1.82%	8.65%	-16.38%	12.29%	18.05%	23.35%	-21.70%	30.41%
WOOD iShares Global Timber & Forestry ETF	-5.94%	-3.27%	-4.21%	13.84%	-19.39%	17.03%	20.36%	19.75%	-17.73%	34.49%

Correlation

The correlation between CUT and WOOD is 0.91, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.91
Correlation (3Y) Calculated over the trailing 3-year period	0.90
Correlation (5Y) Calculated over the trailing 5-year period	0.92
Correlation (10Y) Calculated over the trailing 10-year period	0.91
Correlation (All Time) Calculated using the full available price history since Jun 25, 2008	0.91

The correlation between CUT and WOOD has been stable across timeframes, ranging from 0.90 to 0.92 - a consistent structural relationship.

CUT vs. WOOD - Sectors Allocation Comparison

Sectors	CUT	WOOD
Basic Materials	49.4%	62.4%
Consumer Cyclical	41.5%	24.6%
Industrials	5.1%	-
Real Estate	4.5%	13.0%
Financial Services	0.3%	-
Consumer Defensive	0.2%	-
Technology	0.1%	-
Communication Services	-	-
Energy	-	-
Healthcare	-	-
Utilities	-	-

Return for Risk

CUT vs. WOOD — 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

WOOD

WOOD Risk / Return Rank: 6
WOOD Sharpe Ratio Rank: 6
WOOD Sortino Ratio Rank: 6
WOOD Omega Ratio Rank: 6
WOOD Calmar Ratio Rank: 7
WOOD Martin Ratio Rank: 6

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. WOOD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco MSCI Global Timber ETF (CUT) and iShares Global Timber & Forestry ETF (WOOD). 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	WOOD	Difference
Sharpe ratio: Return per unit of total volatility	-0.26	-0.27	+0.01
Sortino ratio: Return per unit of downside risk	-0.25	-0.26	+0.01
Omega ratio: Gain probability vs. loss probability	0.97	0.97	0.00
Calmar ratio: Return relative to maximum drawdown	-0.25	-0.24	-0.01
Martin ratio: Return relative to average drawdown	-0.51	-0.51	-0.01

CUT vs. WOOD - Sharpe Ratio Comparison

The current CUT Sharpe Ratio is -0.26, which is comparable to the WOOD Sharpe Ratio of -0.27. The chart below compares the historical Sharpe Ratios of CUT and WOOD, 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. WOOD - Drawdown Comparison

The maximum CUT drawdown since its inception was -70.03%, which is greater than WOOD's maximum drawdown of -63.25%. Use the drawdown chart below to compare losses from any high point for CUT and WOOD.

Drawdown Indicators

	CUT	WOOD	Difference
Max Drawdown Largest peak-to-trough decline	-70.03%	-63.25%	-6.78%
Max Drawdown (1Y) Largest decline over 1 year	-19.62%	-21.64%	+2.02%
Max Drawdown (3Y) Largest decline over 3 years	-22.23%	-22.79%	+0.56%
Max Drawdown (5Y) Largest decline over 5 years	-30.40%	-30.71%	+0.31%
Max Drawdown (10Y) Largest decline over 10 years	-45.76%	-50.20%	+4.44%
Current Drawdown Current decline from peak	-22.00%	-23.49%	+1.49%
Average Drawdown Average peak-to-trough decline	-15.28%	-14.79%	-0.49%
Ulcer Index Depth and duration of drawdowns from previous peaks	9.50%	10.07%	-0.57%

Volatility

CUT vs. WOOD - Volatility Comparison

Invesco MSCI Global Timber ETF (CUT) and iShares Global Timber & Forestry ETF (WOOD) have volatilities of 4.94% and 4.88%, 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.

Volatility by Period

	CUT	WOOD	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.94%	4.88%	+0.06%
Volatility (6M) Calculated over the trailing 6-month period	14.23%	14.16%	+0.07%
Volatility (1Y) Calculated over the trailing 1-year period	18.86%	18.88%	-0.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.51%	19.73%	-1.22%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.21%	21.85%	-1.64%

CUT vs. WOOD - Expense Ratio Comparison

CUT has a 0.55% expense ratio, which is higher than WOOD's 0.46% expense ratio.

Dividends

CUT vs. WOOD - Dividend Comparison

CUT's dividend yield for the trailing twelve months is around 2.57%, more than WOOD's 2.51% 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%
WOOD iShares Global Timber & Forestry ETF	2.51%	2.51%	2.09%	1.64%	2.26%	1.24%	0.98%	1.85%	2.82%	1.19%	1.65%	2.04%

Frequently Asked Questions

Can I hold both CUT and WOOD in my portfolio?

With a correlation of 0.91, CUT and WOOD move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, CUT or WOOD?

CUT has higher volatility (4.94%) compared to WOOD (4.88%). In terms of maximum drawdown, CUT dropped -70.03% vs WOOD's -63.25%.

Which ETF is better, CUT or WOOD?

On 10-year performance, WOOD leads with 6.12% vs 4.69% for CUT. On fees, WOOD is cheaper at 0.46% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, CUT or WOOD?

Over the 10-year period, WOOD has performed better with a 6.12% return vs 4.69%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, CUT or WOOD?

WOOD is cheaper with a 0.46% expense ratio, compared with 0.55% for CUT.

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

CUT has the higher dividend yield at 2.57%, compared with 2.51% for WOOD.

What is the main difference between CUT and WOOD?

CUT tracks Beacon Global Timber Index, while WOOD tracks S&P Global Timber & Forestry Index. They also come from different issuers: Invesco and iShares. Their fees differ too: 0.55% for CUT and 0.46% for WOOD.

Which has better risk-adjusted returns?

CUT currently has the higher Sharpe Ratio (-0.26 vs -0.27), 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.