“If you’re a believer in the bullish housing data that has been seen recently in the U.S., there’s an ETF to play this trend with. The Claymore/Beacon Global Timber ETF (NYSE:CUT) offers exposure to residential real estate plays such as Fibria Celulose S.A. (NYSE:FBR), Rayonier Inc. (NYSE: RYN) and Class A Common Stock (NYSE:GEF),” The ETF Professor Reports From Benzinga.

The ETF Professor goes on to say, “At its core, CUT is indicative of its title, meaning it is a play on lumber demand, putting the ETF firmly at the mercy of risk appetite. In other words, regardless of how robust of housing data appears to be in the States, CUT will likely be held hostage to trends in emerging markets equities and commodities prices rather than U.S. housing data.”

“A long-term investor can probably wait for better prices here and it is worth noting that CUT is trading below its 50-day moving average, so the technicals aren’t exactly appealing,” The Professor Reports.

See the article: HERE

Here are some more details we put together on the Claymore/Beacon Global Timber ETF (NYSE:CUT) below:

Claymore/Beacon Global Timber Index ETF (NYSE:CUT)

The Claymore/Beacon Global Timber Index ETF (NYSE:CUT), the “Fund”, seeks investment results that correspond generally to the performance, before the Fund’s fees and expenses, of an equity index called the Beacon Global Timber Index (the “Index”). The Index is designed to track the performance of common stocks of global timber companies. The universe of eligible securities includes firms that own or lease forested land and harvest the timber for commercial use and sale of wood-based products, including lumber, pulp or other processed or finished goods such as paper and packaging. The Fund will normally invest at least 90% of its total assets in common stock, American depositary receipts (“ADRs”) and global depositary receipts (“GDRs”) that comprise the Index. Claymore Advisors, LLC (the “Investment Adviser”) seeks a correlation over time of 0.95 or better between the Fund’s performance and the performance of the Index. A figure of 1.00 would represent perfect correlation.

The Fund, using a low cost “passive” or “indexing” investment approach, will seek to replicate, before expenses, the performance of the Beacon Global Timber Index. All stocks in the Index are selected from the universe of global timber companies. Beacon Indexes LLC (“Beacon” or the “Index Provider”) defines global timber companies as firms who own or lease forested land and harvest the timber from such forested land for commercial use and sale of wood-based products, including lumber, pulp or other processed or finished goods such as paper and packaging. Potential Index constituents include securities with market capitalizations greater than $300 million, which includes securities of all market capitalizations, as determined by Beacon. Beacon does not guarantee the inclusion of all relevant companies in the Index.

NYSE:CUT