IYM vs. CUT

Last updated Jul 17, 2026

IYM (iShares U.S. Basic Materials ETF) and CUT (Invesco MSCI Global Timber ETF) are both Materials funds - IYM tracks the Dow Jones U.S. Basic Materials Index while CUT tracks the Beacon Global Timber Index. Both are passively managed. Over the past 10 years, IYM returned 9.88%/yr vs 4.16%/yr for CUT. A 0.76 correlation means they provide meaningful diversification when combined. IYM charges 0.42%/yr vs 0.55%/yr for CUT.

Performance

IYM vs. CUT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares U.S. Basic Materials ETF (IYM) and Invesco MSCI Global Timber ETF (CUT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IYM achieves a 14.35% return, which is significantly higher than CUT's -2.02% return. Over the past 10 years, IYM has outperformed CUT with an annualized return of 9.88%, while CUT has yielded a comparatively lower 4.16% annualized return.

IYM

• 1D: -0.71%
• 1M: -7.33%
• 6M: 3.37%
• YTD: 14.35%
• 1Y: 24.42%
• 3Y*: 10.93%
• 5Y*: 8.40%
• 10Y*: 9.88%

CUT

• 1D: 1.40%
• 1M: 0.75%
• 6M: -7.11%
• YTD: -2.02%
• 1Y: -4.61%
• 3Y*: 0.28%
• 5Y*: -2.70%
• 10Y*: 4.16%

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

IYM vs. CUT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IYM iShares U.S. Basic Materials ETF	14.35%	20.41%	-4.54%	12.83%	-9.15%	25.62%	17.87%	19.22%	-16.63%	24.83%
CUT Invesco MSCI Global Timber ETF	-2.02%	-5.92%	1.82%	8.65%	-16.38%	12.29%	18.05%	23.35%	-21.70%	30.41%

Correlation

The correlation between IYM and CUT is 0.62, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.62
Correlation (3Y) Calculated over the trailing 3-year period	0.68
Correlation (5Y) Calculated over the trailing 5-year period	0.74
Correlation (10Y) Calculated over the trailing 10-year period	0.76
Correlation (All Time) Calculated using the full available price history since Nov 9, 2007	0.76

The correlation between IYM and CUT shifts across timeframes, from 0.62 (1 year) to 0.76 (all time), reflecting how their relationship changes across market environments.

IYM vs. CUT - Sectors Allocation Comparison

Sectors	IYM	CUT
Basic Materials	84.2%	41.3%
Industrials	12.3%	3.6%
Consumer Cyclical	3.3%	45.0%
Communication Services	-	-
Consumer Defensive	-	0.2%
Energy	-	-
Financial Services	-	0.3%
Healthcare	-	-
Real Estate	-	10.1%
Technology	-	0.1%
Utilities	-	-

Return for Risk

IYM vs. CUT — Risk / Return Rank

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

IYM

IYM Risk / Return Rank: 43
IYM Sharpe Ratio Rank: 42
IYM Sortino Ratio Rank: 41
IYM Omega Ratio Rank: 39
IYM Calmar Ratio Rank: 43
IYM Martin Ratio Rank: 48

CUT

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

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.

IYM vs. CUT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Basic Materials ETF (IYM) and Invesco MSCI Global Timber ETF (CUT). 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.

	IYM	CUT	Difference
Sharpe ratio: Return per unit of total volatility	1.24	-0.25	+1.49
Sortino ratio: Return per unit of downside risk	1.76	-0.23	+1.99
Omega ratio: Gain probability vs. loss probability	1.21	0.97	+0.24
Calmar ratio: Return relative to maximum drawdown	1.80	-0.24	+2.04
Martin ratio: Return relative to average drawdown	6.30	-0.45	+6.76

IYM vs. CUT - Sharpe Ratio Comparison

The current IYM Sharpe Ratio is 1.24, which is higher than the CUT Sharpe Ratio of -0.25. The chart below compares the historical Sharpe Ratios of IYM and CUT, 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

IYM vs. CUT - Drawdown Comparison

The maximum IYM drawdown since its inception was -67.78%, roughly equal to the maximum CUT drawdown of -70.03%. Use the drawdown chart below to compare losses from any high point for IYM and CUT.

Drawdown Indicators

	IYM	CUT	Difference
Max Drawdown Largest peak-to-trough decline	-67.78%	-70.03%	+2.25%
Max Drawdown (1Y) Largest decline over 1 year	-13.61%	-19.62%	+6.01%
Max Drawdown (3Y) Largest decline over 3 years	-23.62%	-22.23%	-1.39%
Max Drawdown (5Y) Largest decline over 5 years	-29.94%	-30.40%	+0.46%
Max Drawdown (10Y) Largest decline over 10 years	-42.76%	-45.76%	+3.00%
Current Drawdown Current decline from peak	-7.36%	-20.09%	+12.73%
Average Drawdown Average peak-to-trough decline	-11.42%	-15.30%	+3.88%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.88%	10.21%	-6.33%

Volatility

IYM vs. CUT - Volatility Comparison

The current volatility for iShares U.S. Basic Materials ETF (IYM) is 4.91%, while Invesco MSCI Global Timber ETF (CUT) has a volatility of 5.25%. This indicates that IYM experiences smaller price fluctuations and is considered to be less risky than CUT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IYM	CUT	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.91%	5.25%	-0.34%
Volatility (6M) Calculated over the trailing 6-month period	15.80%	14.62%	+1.18%
Volatility (1Y) Calculated over the trailing 1-year period	19.80%	18.75%	+1.05%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.50%	18.57%	+1.93%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.69%	20.05%	+1.64%

IYM vs. CUT - Expense Ratio Comparison

IYM has a 0.42% expense ratio, which is lower than CUT's 0.55% expense ratio.

Dividends

IYM vs. CUT - Dividend Comparison

IYM's dividend yield for the trailing twelve months is around 1.33%, less than CUT's 2.51% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
CUT Invesco MSCI Global Timber ETF	2.51%	2.46%	3.05%	2.44%	2.58%	1.57%	1.65%	2.67%	3.43%	1.57%	2.08%	1.52%
IYM iShares U.S. Basic Materials ETF	1.33%	1.51%	1.65%	1.77%	2.14%	1.48%	1.39%	2.08%	1.68%	1.43%	1.47%	2.04%

Frequently Asked Questions

Can I hold both IYM and CUT in my portfolio?

IYM and CUT have a correlation of 0.62, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IYM or CUT?

CUT has higher volatility (5.25%) compared to IYM (4.91%). In terms of maximum drawdown, IYM dropped -67.78% vs CUT's -70.03%.

Which ETF is better, IYM or CUT?

On 10-year performance, IYM leads with 9.88% vs 4.16% for CUT. On fees, IYM is cheaper at 0.42% per year. On volatility, IYM has been the lower-risk option at 4.91%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IYM or CUT?

Over the 10-year period, IYM has performed better with a 9.88% return vs 4.16%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IYM or CUT?

IYM is cheaper with a 0.42% expense ratio, compared with 0.55% for CUT.

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

CUT has the higher dividend yield at 2.51%, compared with 1.33% for IYM.

What is the main difference between IYM and CUT?

IYM tracks Dow Jones U.S. Basic Materials Index, while CUT tracks Beacon Global Timber Index. They also come from different issuers: iShares and Invesco. Their fees differ too: 0.42% for IYM and 0.55% for CUT.

Which has better risk-adjusted returns?

IYM currently has the higher Sharpe Ratio (1.24 vs -0.25), 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.