SETM vs. WOOD

Last updated Jul 14, 2026

SETM (Sprott Critical Materials ETF) and WOOD (iShares Global Timber & Forestry ETF) are both Materials funds - SETM tracks the Nasdaq Sprott Critical Materials Index while WOOD tracks the S&P Global Timber & Forestry Index. Both are passively managed. Over the past 3 years, SETM returned 18.54%/yr vs -1.55%/yr for WOOD. A 0.51 correlation means they provide meaningful diversification when combined. SETM charges 0.65%/yr vs 0.46%/yr for WOOD.

Performance

SETM vs. WOOD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Sprott Critical Materials ETF (SETM) 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, SETM achieves a 1.35% return, which is significantly higher than WOOD's -5.98% return.

SETM

• 1D: -3.52%
• 1M: -14.31%
• 6M: -14.39%
• YTD: 1.35%
• 1Y: 59.83%
• 3Y*: 18.54%
• 5Y*: —
• 10Y*: —

WOOD

• 1D: -0.96%
• 1M: -0.55%
• 6M: -10.71%
• YTD: -5.98%
• 1Y: -8.35%
• 3Y*: -1.55%
• 5Y*: -3.59%
• 10Y*: 5.43%

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

SETM vs. WOOD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
SETM Sprott Critical Materials ETF	1.35%	95.27%	-13.24%	-13.11%
WOOD iShares Global Timber & Forestry ETF	-5.98%	-3.27%	-4.21%	4.32%

Correlation

The correlation between SETM and WOOD is 0.41, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.41
Correlation (3Y) Calculated over the trailing 3-year period	0.49
Correlation (All Time) Calculated using the full available price history since Feb 2, 2023	0.51

The correlation between SETM and WOOD shifts across timeframes, from 0.41 (1 year) to 0.51 (all time), reflecting how their relationship changes across market environments.

SETM vs. WOOD - Sectors Allocation Comparison

Sectors	SETM	WOOD
Basic Materials	76.0%	62.4%
Energy	22.9%	-
Industrials	1.0%	-
Technology	0.1%	-
Consumer Defensive	0.1%	-
Communication Services	-	-
Consumer Cyclical	-	24.6%
Financial Services	-	-
Healthcare	-	-
Real Estate	-	13.0%
Utilities	-	-

Return for Risk

SETM vs. WOOD — Risk / Return Rank

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

SETM

SETM Risk / Return Rank: 47
SETM Sharpe Ratio Rank: 46
SETM Sortino Ratio Rank: 42
SETM Omega Ratio Rank: 44
SETM Calmar Ratio Rank: 58
SETM Martin Ratio Rank: 44

WOOD

WOOD Risk / Return Rank: 6
WOOD Sharpe Ratio Rank: 6
WOOD Sortino Ratio Rank: 5
WOOD Omega Ratio Rank: 5
WOOD Calmar Ratio Rank: 6
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.

SETM vs. WOOD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Sprott Critical Materials ETF (SETM) 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.

	SETM	WOOD	Difference
Sharpe ratio: Return per unit of total volatility	1.30	-0.45	+1.74
Sortino ratio: Return per unit of downside risk	1.76	-0.53	+2.29
Omega ratio: Gain probability vs. loss probability	1.23	0.94	+0.29
Calmar ratio: Return relative to maximum drawdown	2.30	-0.39	+2.69
Martin ratio: Return relative to average drawdown	5.76	-0.77	+6.52

SETM vs. WOOD - Sharpe Ratio Comparison

The current SETM Sharpe Ratio is 1.30, which is higher than the WOOD Sharpe Ratio of -0.45. The chart below compares the historical Sharpe Ratios of SETM 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

SETM vs. WOOD - Drawdown Comparison

The maximum SETM drawdown since its inception was -42.81%, smaller than the maximum WOOD drawdown of -63.25%. Use the drawdown chart below to compare losses from any high point for SETM and WOOD.

Drawdown Indicators

	SETM	WOOD	Difference
Max Drawdown Largest peak-to-trough decline	-42.81%	-63.25%	+20.44%
Max Drawdown (1Y) Largest decline over 1 year	-26.15%	-21.64%	-4.51%
Max Drawdown (3Y) Largest decline over 3 years	-42.81%	-22.79%	-20.02%
Max Drawdown (5Y) Largest decline over 5 years	—	-30.71%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-50.20%	—
Current Drawdown Current decline from peak	-26.15%	-23.52%	-2.63%
Average Drawdown Average peak-to-trough decline	-15.15%	-14.81%	-0.34%
Ulcer Index Depth and duration of drawdowns from previous peaks	10.43%	10.94%	-0.51%

Volatility

SETM vs. WOOD - Volatility Comparison

Sprott Critical Materials ETF (SETM) has a higher volatility of 12.74% compared to iShares Global Timber & Forestry ETF (WOOD) at 5.42%. This indicates that SETM'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

	SETM	WOOD	Difference
Volatility (1M) Calculated over the trailing 1-month period	12.74%	5.42%	+7.32%
Volatility (6M) Calculated over the trailing 6-month period	37.11%	14.55%	+22.56%
Volatility (1Y) Calculated over the trailing 1-year period	46.50%	18.71%	+27.79%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	37.17%	19.74%	+17.43%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	37.17%	21.71%	+15.46%

SETM vs. WOOD - Expense Ratio Comparison

SETM has a 0.65% expense ratio, which is higher than WOOD's 0.46% expense ratio.

Dividends

SETM vs. WOOD - Dividend Comparison

SETM's dividend yield for the trailing twelve months is around 1.54%, less than WOOD's 2.51% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SETM Sprott Critical Materials ETF	1.54%	1.56%	2.07%	2.47%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
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 SETM and WOOD in my portfolio?

SETM and WOOD have a correlation of 0.41, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SETM or WOOD?

SETM has higher volatility (12.74%) compared to WOOD (5.42%). In terms of maximum drawdown, SETM dropped -42.81% vs WOOD's -63.25%.

Which ETF is better, SETM or WOOD?

On 3-year performance, SETM leads with 18.54% vs -1.55% for WOOD. On fees, WOOD is cheaper at 0.46% per year. On volatility, WOOD has been the lower-risk option at 5.42%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SETM or WOOD?

Over the 3-year period, SETM has performed better with a 18.54% return vs -1.55%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SETM or WOOD?

WOOD is cheaper with a 0.46% expense ratio, compared with 0.65% for SETM.

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

WOOD has the higher dividend yield at 2.51%, compared with 1.54% for SETM.

What is the main difference between SETM and WOOD?

SETM tracks Nasdaq Sprott Critical Materials Index, while WOOD tracks S&P Global Timber & Forestry Index. They also come from different issuers: Sprott and iShares. Their fees differ too: 0.65% for SETM and 0.46% for WOOD.

Which has better risk-adjusted returns?

SETM currently has the higher Sharpe Ratio (1.30 vs -0.45), 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.