WOOD vs. CUT

Last updated Jul 12, 2026

WOOD (iShares Global Timber & Forestry ETF) and CUT (Invesco MSCI Global Timber ETF) are both Materials funds - WOOD tracks the S&P Global Timber & Forestry Index while CUT tracks the Beacon Global Timber Index. Both are passively managed. Over the past 10 years, WOOD returned 5.69%/yr vs 4.22%/yr for CUT. Their correlation of 0.91 suggests significant overlap in exposure. WOOD charges 0.46%/yr vs 0.55%/yr for CUT.

Performance

WOOD vs. CUT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Global Timber & Forestry ETF (WOOD) 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, WOOD achieves a -5.06% return, which is significantly lower than CUT's -3.54% return. Over the past 10 years, WOOD has outperformed CUT with an annualized return of 5.69%, while CUT has yielded a comparatively lower 4.22% annualized return.

WOOD

• 1D: 1.94%
• 1M: 0.42%
• 6M: -9.58%
• YTD: -5.06%
• 1Y: -7.46%
• 3Y*: -0.50%
• 5Y*: -3.65%
• 10Y*: 5.69%

CUT

• 1D: 1.49%
• 1M: 0.55%
• 6M: -7.74%
• YTD: -3.54%
• 1Y: -7.67%
• 3Y*: 0.48%
• 5Y*: -3.66%
• 10Y*: 4.22%

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

WOOD vs. CUT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
WOOD iShares Global Timber & Forestry ETF	-5.06%	-3.27%	-4.21%	13.84%	-19.39%	17.03%	20.36%	19.75%	-17.73%	34.49%
CUT Invesco MSCI Global Timber ETF	-3.54%	-5.92%	1.82%	8.65%	-16.38%	12.29%	18.05%	23.35%	-21.70%	30.41%

Correlation

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

WOOD vs. CUT - Sectors Allocation Comparison

Sectors	WOOD	CUT
Basic Materials	62.4%	41.3%
Consumer Cyclical	24.6%	45.0%
Real Estate	13.0%	10.1%
Communication Services	-	-
Consumer Defensive	-	0.2%
Energy	-	-
Financial Services	-	0.3%
Healthcare	-	-
Industrials	-	3.6%
Technology	-	0.1%
Utilities	-	-

Return for Risk

WOOD vs. CUT — Risk / Return Rank

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

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

CUT

CUT Risk / Return Rank: 5
CUT Sharpe Ratio Rank: 5
CUT Sortino Ratio Rank: 5
CUT Omega Ratio Rank: 5
CUT Calmar Ratio Rank: 6
CUT Martin Ratio Rank: 5

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.

WOOD vs. CUT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Global Timber & Forestry ETF (WOOD) 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.

	WOOD	CUT	Difference
Sharpe ratio: Return per unit of total volatility	-0.42	-0.47	+0.04
Sortino ratio: Return per unit of downside risk	-0.50	-0.57	+0.07
Omega ratio: Gain probability vs. loss probability	0.95	0.94	+0.01
Calmar ratio: Return relative to maximum drawdown	-0.37	-0.45	+0.08
Martin ratio: Return relative to average drawdown	-0.73	-0.87	+0.14

WOOD vs. CUT - Sharpe Ratio Comparison

The current WOOD Sharpe Ratio is -0.42, which is comparable to the CUT Sharpe Ratio of -0.47. The chart below compares the historical Sharpe Ratios of WOOD 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

WOOD vs. CUT - Drawdown Comparison

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

Drawdown Indicators

	WOOD	CUT	Difference
Max Drawdown Largest peak-to-trough decline	-63.25%	-70.03%	+6.78%
Max Drawdown (1Y) Largest decline over 1 year	-21.64%	-19.62%	-2.02%
Max Drawdown (3Y) Largest decline over 3 years	-22.79%	-22.23%	-0.56%
Max Drawdown (5Y) Largest decline over 5 years	-30.71%	-30.40%	-0.31%
Max Drawdown (10Y) Largest decline over 10 years	-50.20%	-45.76%	-4.44%
Current Drawdown Current decline from peak	-22.77%	-21.33%	-1.44%
Average Drawdown Average peak-to-trough decline	-14.81%	-15.29%	+0.48%
Ulcer Index Depth and duration of drawdowns from previous peaks	10.88%	10.06%	+0.82%

Volatility

WOOD vs. CUT - Volatility Comparison

The current volatility for iShares Global Timber & Forestry ETF (WOOD) is 5.61%, while Invesco MSCI Global Timber ETF (CUT) has a volatility of 6.02%. This indicates that WOOD 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

	WOOD	CUT	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.61%	6.02%	-0.41%
Volatility (6M) Calculated over the trailing 6-month period	14.57%	14.70%	-0.13%
Volatility (1Y) Calculated over the trailing 1-year period	18.67%	18.75%	-0.08%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.74%	18.56%	+1.18%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.70%	20.05%	+1.65%

WOOD vs. CUT - Expense Ratio Comparison

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

Dividends

WOOD vs. CUT - Dividend Comparison

WOOD's dividend yield for the trailing twelve months is around 2.49%, less than CUT's 2.55% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
CUT Invesco MSCI Global Timber ETF	2.55%	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	2.49%	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 WOOD and CUT in my portfolio?

With a correlation of 0.91, WOOD and CUT 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, WOOD or CUT?

CUT has higher volatility (6.02%) compared to WOOD (5.61%). In terms of maximum drawdown, WOOD dropped -63.25% vs CUT's -70.03%.

Which ETF is better, WOOD or CUT?

On 10-year performance, WOOD leads with 5.69% vs 4.22% for CUT. On fees, WOOD is cheaper at 0.46% per year. On volatility, WOOD has been the lower-risk option at 5.61%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, WOOD or CUT?

Over the 10-year period, WOOD has performed better with a 5.69% return vs 4.22%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, WOOD or CUT?

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

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

CUT has the higher dividend yield at 2.55%, compared with 2.49% for WOOD.

What is the main difference between WOOD and CUT?

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

Which has better risk-adjusted returns?

WOOD currently has the higher Sharpe Ratio (-0.42 vs -0.47), 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.