Seeking Alpha

Geoffrey Lordi » Comments » Single Comment

  • CUT vs. WOOD: Timber ETFs Square Off [View article]
    The problem with CUT & WOOD is that they don't track timber, per say, but timber and paper companies, as the index states. A .76 correlation to MCAFE and a .69 to (I assume, based on your statistics) the S&P or equivalent - even over 15 years - is not a low correlation value. In fact, both of these ETFs have traded in near lockstep over most major measurement periods since their inception.

    I certainly do not disagree with the premise of owning timber, and our neutral fund regularly invests in highly non-correlated assets. But raw land, for those inclined, gives folks an (arguably) better non-correlated appreciation than these two, largely mainstream, equity trackers. Even Plum Creek (PCL) - a favorite of fellow portfolio builder R. Nusbaum - exhibited a .91 correlation to the S&P over the last year, with WOOD at .99 and CUT at .96.
    Jul 01 11:27 am |Rating: +7 0
All Comments by Geoffrey Lordi »
Comments by Ticker
AA, ACM, ADRE, AFK, AGG, AUS, AXP, AYT, BAC, BAL, BBH, BDX, BHP, BIK, BKF, BLV, BMY, BNA, BND, BNZ, BPT, BRF, BRK.A, BRK.B, BSI, BSR, BSV, BWX, BZF, C, CAF, CBS, CEL, CEW, CFSG, CGW, CHIB, CHII, CHIQ, CHIX, CHK, CIU, CL, CNY, COF, COW, CQQQ, CRNT, CSJ, CSR,
Geoffrey Lordi's
Comments Stats
93 comments
Rating: 86 (96 - 10 )