WOOD Is More Lumber Than Just Timber, And We Like Lumber

Valkyrie Trading Society
Investing Group Leader

Summary

  • The full name of the ETF is a little misleading, called the iShares S&P Global Timber & Forestry Index ETF.
  • Timber is a different market from lumber, and really a lot of this ETF's exposures are lumber.
  • Lumber is being eschewed by markets, but demographics make this an interesting commodity, as do its peculiar supply side issues.
  • Pulp is a little riskier, and there's some of that in here.
  • Overall, it's weird to buy WOOD ETF since it mixes quite different commodities. We'd prefer narrower bets.
  • Looking for a helping hand in the market? Members of The Value Lab get exclusive ideas and guidance to navigate any climate. Learn More »

Stack of lumber and planks in a lumber warehouse outdoors

Melena-Nsk

Published on the Value Lab 26/7/22

The iShares S&P Global Timber & Forestry Index ETF (NASDAQ:WOOD) is a bit of a strange ETF. It contains a lot of interesting businesses that in one way or another connect to forestry. However, they

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