Investors Can Play In The Woods With These Timber ETFs
“One industry with no worries about shelf life is timber. The reason I love timber is that even when it isn’t consumed immediately, it doesn’t start to lose its value… like bread, microprocessors, and newspapers. Mother Nature pays no attention to economic cycles. As long as there is rain and sun, your investment in timber continues to grow,” Howe Street Reports.
“Well, let’s start with the fact the NCREIF (National Council of Real Estate Investment Fiduciaries) Timberland Index has returned an average of 12.8% over the last 20 years. Compare that to 7.8% for the S&P 500 over the same time period. Not only that but, according to legendary investor Jeremy Grantham, it’s risen 3% more than inflation for the last 90 years. So it’s beaten stocks and it’s been a great inflation hedge. It has been a good investment in bear markets. During the Great Depression, timber was up 233% while stocks were down 70%. In fact, timber has a very low correlation to stock market returns. Institutional investors love that. And so should you.”
“Until recently, timber has been the exclusive province of large institutions. Why? Because direct investments in timber require very deep pockets. Today, there are several options for individual investors, including two ETFs. In November 2007, Claymore Securities launched the Claymore/Clear Global Timber Index ETF (CUT). You might also look at iShares S&P Global Timber & Forestry Index Fund (WOOD). I recommend the iShares ETF (WOOD) for investors looking for exposure to timber. This ETF has moved up a bit with the rally in the market, so look to buy it when it moves below its 200-day moving average of $35,” Howe Street Reports.
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Here are some details on the Claymore/Clear Global Timber Index ETF (CUT) and the iShares S&P Global Timber & Forestry ETF (WOOD) below:
The investment (CUT) seeks results that correspond generally to the performance, before the fees and expenses, of the Clear Global Timber index. The fund normally invests at least 90% of total assets in common stock, American depositary receipts and global depositary receipts that comprise the Clear Global Timber index. It seeks a correlation over time of 0.95 or better between its performance and the performance of the index. It is nondiversified.
|
FUND HOLDINGS |
| NAME | SYMBOL | WEIGHTING |
|---|---|---|
| SINO-FOREST CORP | (TRE) | 5.47 % |
| OJI PAPER CO LTD | (3861) | 5.11 % |
| NIPPON UNIPAC HOLDING | (ELE) | 5.04 % |
| SVENSKA CELLULOSA AB-B SHARES | (SCAB) | 4.81 % |
| PLUM CREEK TIMBER CO INC | (PCL) | 4.74 % |
| RAYONIER INC | (RYN) | 4.71 % |
| SONOCO PRODUCTS | (SON) | 4.42 % |
| GREIF INC | (GEF) | 4.40 % |
| WEYERHAEUSER CO | (WY) | 4.39 % |
| DOMTAR CORP | (UFS) | 4.35 % |
| INTERNATIONAL PAPER CO | (IP) | 4.16 % |
| POTLATCH CORP | (PCH) | 4.15 % |
| UPM-KYMMENE OYJ | (UPM1) | 4.00 % |
| FIBRIA CELULOSE S.A. ADR | (FBR) | 3.92 % |
| MEADWESTVACO CORP | (ABE) | 3.91 % |
| STORA ENSO OYJ SER R | (STERV) | 3.85 % |
| SUMITOMO FORESTRY CO LTD | (1911) | 3.73 % |
| HOLMEN AB SER B | (HOLM) | 3.67 % |
| SMURFIT KAPPA GROUP PLC | (SKG) | 3.55 % |
| WEST FRASER TIMBER CO LTD | (WFT) | 2.97 % |
| MONDI LTD | (MND) | 2.78 % |
| GUNNS LTD | (GNS) | 2.15 % |
| CANFOR CORP | (VIS) | 2.02 % |
| HOKUETSU PAPER MILLS LTD | (3865) | 1.99 % |
| DELTIC TIMBER CORP | (DEL) | 1.53 % |
| WAUSAU PAPER CORP | (WPP) | 1.51 % |
| PORTUCEL EMPRESA PRODUTOR | (PTI) | 1.13 % |
| GRUPO EMPRESARIAL | (ENC) | 1.04 % |
| CHINA GRAND FORESTRY RESOURCES | (910) | 0.51 % |
| AUSTRALIAN DOLLAR | 0.00 % | |
| SWEDISH KRONA | 0.00 % | |
| SOUTH AFRICAN RAND | 0.00 % |
The investment (WOOD) seeks results that correspond generally to the price and yield performance, before fees and expenses, of the S&P Global Timber & Forestry index. The fund generally invests at least 90% of assets in securities of the underlying index and depositary receipts representing securities of the underlying index. It may invest the remainder of assets in securities not included in underlying index but which believed will help the fund track the underlying index. The fund is nondiversified.
| Symbol | |||||||
|---|---|---|---|---|---|---|---|
| (PCL) | PLUM CREEK TIMBER CO | 9.17 | $4,120,156 | – | XNYS | Real Estate Investment Trusts (REITs) | 1.00 |
| (PCH) | POTLATCH CORP | 8.95 | $4,022,480 | – | XNYS | Real Estate Investment Trusts (REITs) | 1.00 |
| (WY) | WEYERHAEUSER CO | 8.81 | $3,956,283 | – | XNYS | Paper & Forest Products | 1.00 |
| (TRE) | SINO-FOREST CORPORATION-CL A | 8.29 | $3,725,656 | – | XTSE | Paper & Forest Products | 1.07 |
| (WFT) | WEST FRASER TIMBER CO LTD | 8.02 | $3,604,407 | – | XTSE | Paper & Forest Products | 1.07 |
| (CFP) | CANFOR CORPORATION | 6.02 | $2,706,518 | – | XTSE | Paper & Forest Products | 1.07 |
| (RYN) | RAYONIER INC | 4.97 | $2,233,532 | – | XNYS | Real Estate Investment Trusts (REITs) | 1.00 |
| (GNS) | GUNNS LIMITED | 4.66 | $2,095,008 | – | XASX | Paper & Forest Products | 1.16 |
| (DEL) | DELTIC TIMBER CORP | 4.34 | $1,949,838 | – | XNYS | Paper & Forest Products | 1.00 |
| (HOLMB) | HOLMEN AB-B SHARES | 3.26 | $1,465,469 | – | XSTO | Paper & Forest Products | 7.45 |
| (FBR) | FIBRIA CELULOSE SA | 3.11 | $1,396,420 | – | XNYS | Paper & Forest Products | 1.00 |
| (SAP) | SAPPI LIMITED | 3.05 | $1,372,259 | – | XJSE | Paper & Forest Products | 7.71 |
| (PKG) | PACKAGING CORP OF AMERICA | 2.95 | $1,323,378 | – | XNYS | Containers & Packaging | 1.00 |
| (SON) | SONOCO PRODUCTS CO | 2.72 | $1,223,773 | – | XNYS | Containers & Packaging | 1.00 |
| (MWV) | MEADWESTVACO CORP | 2.70 | $1,212,918 | – | XNYS | Paper & Forest Products | 1.00 |
| (3861) | OJI PAPER CO LTD | 2.41 | $1,084,646 | – | XTKS | Paper & Forest Products | 89.36 |
| (IP) | INTERNATIONAL PAPER CO | 2.40 | $1,079,115 | – | XNYS | Paper & Forest Products | 1.00 |
| (UPM1V) | UPM-KYMMENE OYJ | 2.18 | $980,877 | – | XHEL | Paper & Forest Products | 0.73 |
| (SCAB) | SVENSKA CELLULOSA AB-B SHS | 2.16 | $970,353 | – | XSTO | Paper & Forest Products | 7.45 |
| (TIN) | TEMPLE-INLAND INC | 2.11 | $946,822 | – | XNYS | Containers & Packaging | 1.00 |
| (1911) | SUMITOMO FORESTRY CO LTD | 2.07 | $929,107 | – | XOSE | Household Durables | 89.36 |
| (3893) | NIPPON PAPER GROUP INC | 1.96 | $879,096 | – | XTKS | Paper & Forest Products | 89.36 |
| (GEF) | GREIF INC-CL A | 1.89 | $847,501 | – | XNYS | Containers & Packaging | 1.00 |
| (STERV) | STORA ENSO OYJ-R SHS | 1.67 | $748,217 | – | XHEL | Paper & Forest Products | 0.73 |
| – | BLACKROCK FDS III | 0.05 | $22,220 |
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FUND HOLDINGS as of 2/5/10
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