fingham

Sowing Profits with the Claymore/Clear Global Timber ETF

The problems I have with CUT are that it is not a pure-play on trees and timberland. There are a lot of companies in there who generate a lot of their revenue from downstream processing and marketing of wood and paper products. These have different economic characteristics than pure timberland. CUT also tries to get global exposure - which has pros and cons. If you want an easy pure play on North American timber, just buy PCL, RYN and PCH. Weight according to your own preference (business fundamentals, acreage, market cap), and be patient. This basket has been much better performing than CUT, and it's a purer play from an asset allocation perspective.