CUT vs. WOOD
Compare and contrast key facts about Invesco MSCI Global Timber ETF (CUT) and iShares Global Timber & Forestry ETF (WOOD).
CUT and WOOD 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. WOOD is a passively managed fund by iShares that tracks the performance of the S&P Global Timber & Forestry Index. It was launched on Jun 24, 2008. Both CUT and WOOD 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 WOOD.
Key characteristics
| CUT | WOOD | |
|---|---|---|
| YTD Return | 9.11% | 4.92% |
| 1Y Return | 18.74% | 15.23% |
| 3Y Return (Ann) | 1.14% | 1.50% |
| 5Y Return (Ann) | 8.10% | 8.86% |
| 10Y Return (Ann) | 6.89% | 7.76% |
| Sharpe Ratio | 1.41 | 0.99 |
| Sortino Ratio | 2.07 | 1.52 |
| Omega Ratio | 1.25 | 1.18 |
| Calmar Ratio | 0.75 | 0.66 |
| Martin Ratio | 6.19 | 3.90 |
| Ulcer Index | 3.28% | 4.23% |
| Daily Std Dev | 14.46% | 16.58% |
| Max Drawdown | -70.03% | -63.23% |
| Current Drawdown | -7.11% | -7.88% |
Correlation
The correlation between CUT and WOOD is 0.91, 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. WOOD - Performance Comparison
In the year-to-date period, CUT achieves a 9.11% return, which is significantly higher than WOOD's 4.92% return. Over the past 10 years, CUT has underperformed WOOD with an annualized return of 6.89%, while WOOD has yielded a comparatively higher 7.76% 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. WOOD - Expense Ratio Comparison
CUT has a 0.55% expense ratio, which is higher than WOOD's 0.46% expense ratio.
Risk-Adjusted Performance
CUT vs. WOOD - Risk-Adjusted Performance 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.
Dividends
CUT vs. WOOD - Dividend Comparison
CUT's dividend yield for the trailing twelve months is around 2.24%, more than WOOD's 1.50% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
CUT Invesco MSCI Global Timber ETF | 2.24% | 2.44% | 2.58% | 1.57% | 1.65% | 2.67% | 3.43% | 1.57% | 2.08% | 1.52% | 2.83% | 1.39% |
WOOD iShares Global Timber & Forestry ETF | 1.50% | 1.64% | 2.26% | 1.24% | 0.98% | 1.85% | 2.82% | 1.19% | 1.65% | 2.04% | 1.71% | 1.55% |
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 -63.23%. Use the drawdown chart below to compare losses from any high point for CUT and WOOD. For additional features, visit the drawdowns tool.
Volatility
CUT vs. WOOD - Volatility Comparison
The current volatility for Invesco MSCI Global Timber ETF (CUT) is 4.01%, while iShares Global Timber & Forestry ETF (WOOD) has a volatility of 4.70%. This indicates that CUT experiences smaller price fluctuations and is considered to be less risky than WOOD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.