MXI vs. WOOD

Last updated Jul 18, 2026

MXI (iShares Global Materials ETF) and WOOD (iShares Global Timber & Forestry ETF) are both Materials funds from iShares - MXI tracks the S&P Global Materials Index while WOOD tracks the S&P Global Timber & Forestry Index. Both are passively managed. Over the past 10 years, MXI returned 10.38%/yr vs 5.69%/yr for WOOD. A 0.77 correlation means they provide meaningful diversification when combined. Both charge a 0.46% expense ratio.

Performance

MXI vs. WOOD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Global Materials ETF (MXI) 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, MXI achieves a 8.98% return, which is significantly higher than WOOD's -3.03% return. Over the past 10 years, MXI has outperformed WOOD with an annualized return of 10.38%, while WOOD has yielded a comparatively lower 5.69% annualized return.

MXI

• 1D: -0.60%
• 1M: -6.45%
• 6M: 1.43%
• YTD: 8.98%
• 1Y: 23.30%
• 3Y*: 10.01%
• 5Y*: 6.36%
• 10Y*: 10.38%

WOOD

• 1D: 0.35%
• 1M: 3.09%
• 6M: -9.01%
• YTD: -3.03%
• 1Y: -3.84%
• 3Y*: -0.77%
• 5Y*: -2.39%
• 10Y*: 5.69%

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

MXI vs. WOOD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
MXI iShares Global Materials ETF	8.98%	27.43%	-8.25%	14.37%	-9.09%	15.06%	22.31%	22.19%	-16.06%	30.33%
WOOD iShares Global Timber & Forestry ETF	-3.03%	-3.27%	-4.21%	13.84%	-19.39%	17.03%	20.36%	19.75%	-17.73%	34.49%

Correlation

The correlation between MXI and WOOD is 0.69, 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	0.69
Correlation (3Y) Calculated over the trailing 3-year period	0.72
Correlation (5Y) Calculated over the trailing 5-year period	0.78
Correlation (10Y) Calculated over the trailing 10-year period	0.76
Correlation (All Time) Calculated using the full available price history since Jun 25, 2008	0.77

The correlation between MXI and WOOD has been stable across timeframes, ranging from 0.69 to 0.78 - a consistent structural relationship.

MXI vs. WOOD - Sectors Allocation Comparison

Sectors	MXI	WOOD
Basic Materials	95.2%	62.4%
Consumer Cyclical	4.4%	24.6%
Consumer Defensive	0.6%	-
Industrials	0.5%	-
Communication Services	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Real Estate	-	13.0%
Technology	-	-
Utilities	-	-

Return for Risk

MXI vs. WOOD — Risk / Return Rank

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

MXI

MXI Risk / Return Rank: 37
MXI Sharpe Ratio Rank: 38
MXI Sortino Ratio Rank: 35
MXI Omega Ratio Rank: 37
MXI Calmar Ratio Rank: 34
MXI Martin Ratio Rank: 39

WOOD

WOOD Risk / Return Rank: 8
WOOD Sharpe Ratio Rank: 8
WOOD Sortino Ratio Rank: 7
WOOD Omega Ratio Rank: 7
WOOD Calmar Ratio Rank: 8
WOOD Martin Ratio Rank: 8

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.

MXI vs. WOOD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Global Materials ETF (MXI) 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.

	MXI	WOOD	Difference
Sharpe ratio: Return per unit of total volatility	1.12	-0.21	+1.33
Sortino ratio: Return per unit of downside risk	1.56	-0.17	+1.72
Omega ratio: Gain probability vs. loss probability	1.20	0.98	+0.22
Calmar ratio: Return relative to maximum drawdown	1.45	-0.18	+1.62
Martin ratio: Return relative to average drawdown	4.97	-0.35	+5.32

MXI vs. WOOD - Sharpe Ratio Comparison

The current MXI Sharpe Ratio is 1.12, which is higher than the WOOD Sharpe Ratio of -0.21. The chart below compares the historical Sharpe Ratios of MXI 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

MXI vs. WOOD - Drawdown Comparison

The maximum MXI drawdown since its inception was -68.44%, which is greater than WOOD's maximum drawdown of -63.25%. Use the drawdown chart below to compare losses from any high point for MXI and WOOD.

Drawdown Indicators

	MXI	WOOD	Difference
Max Drawdown Largest peak-to-trough decline	-68.44%	-63.25%	-5.19%
Max Drawdown (1Y) Largest decline over 1 year	-16.18%	-21.64%	+5.46%
Max Drawdown (3Y) Largest decline over 3 years	-22.25%	-22.79%	+0.54%
Max Drawdown (5Y) Largest decline over 5 years	-28.76%	-30.71%	+1.95%
Max Drawdown (10Y) Largest decline over 10 years	-39.52%	-50.20%	+10.68%
Current Drawdown Current decline from peak	-9.63%	-21.12%	+11.49%
Average Drawdown Average peak-to-trough decline	-18.00%	-14.82%	-3.18%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.70%	11.12%	-6.42%

Volatility

MXI vs. WOOD - Volatility Comparison

iShares Global Materials ETF (MXI) has a higher volatility of 5.74% compared to iShares Global Timber & Forestry ETF (WOOD) at 4.87%. This indicates that MXI's price experiences larger fluctuations and is considered to be riskier than WOOD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MXI	WOOD	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.74%	4.87%	+0.87%
Volatility (6M) Calculated over the trailing 6-month period	18.07%	14.29%	+3.78%
Volatility (1Y) Calculated over the trailing 1-year period	20.85%	18.70%	+2.15%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.89%	19.72%	+0.17%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.39%	21.71%	-1.32%

MXI vs. WOOD - Expense Ratio Comparison

Both MXI and WOOD have an expense ratio of 0.46%.

Dividends

MXI vs. WOOD - Dividend Comparison

MXI's dividend yield for the trailing twelve months is around 1.76%, less than WOOD's 2.43% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MXI iShares Global Materials ETF	1.76%	2.22%	3.24%	2.92%	4.84%	3.51%	1.21%	3.64%	2.77%	1.76%	1.31%	3.64%
WOOD iShares Global Timber & Forestry ETF	2.43%	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 MXI and WOOD in my portfolio?

MXI and WOOD have a correlation of 0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MXI or WOOD?

MXI has higher volatility (5.74%) compared to WOOD (4.87%). In terms of maximum drawdown, MXI dropped -68.44% vs WOOD's -63.25%.

Which ETF is better, MXI or WOOD?

On 10-year performance, MXI leads with 10.38% vs 5.69% for WOOD. Both ETFs have the same 0.46% expense ratio. On volatility, WOOD has been the lower-risk option at 4.87%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MXI or WOOD?

Over the 10-year period, MXI has performed better with a 10.38% return vs 5.69%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MXI or WOOD?

MXI and WOOD have the same expense ratio: 0.46% per year.

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

WOOD has the higher dividend yield at 2.43%, compared with 1.76% for MXI.

What is the main difference between MXI and WOOD?

MXI tracks S&P Global Materials Index, while WOOD tracks S&P Global Timber & Forestry Index.

Which has better risk-adjusted returns?

MXI currently has the higher Sharpe Ratio (1.12 vs -0.21), 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.