WOOD: Outperformance Unlikely Due To Structural Weakness In Timber Industry
iShares Global Timber & Forestry ETF (WOOD) has underperformed, with a 12% loss versus a 29% S&P 500 gain over two years. Ongoing structural weaknesses in the timber industry and a lack of historical compounding make WOOD unattractive versus broad market benchmarks. Within WOOD's holdings there is a degree of dilution of pure timber exposure, with significant allocations to packaging and materials sectors beyond forestry.
Timber ETFs: WOOD's Growth Potential Vs. CUT's Defensive Position
Timber ETFs: WOOD's Growth Potential Vs. CUT's Defensive Position
Lumber Prices And WOOD
WOOD ETF offers a favorable risk-reward setup, with technical support at $66.25 and stops recommended below $65 per share. Lumber futures have outperformed WOOD in 2025, but WOOD remains a strong proxy for lumber exposure, especially after recent price weakness. Bullish factors include lower inflation, potential rate cuts, and increased wood demand from rebuilding efforts; bearish risks stem from high U.S. debt and elevated rates.
WOOD: Timber Stocks Outperforming Amid Louder Tariff Talk
The iShares Global Timber & Forestry ETF (WOOD) shows strong performance due to its international exposure and compelling valuation, despite market volatility. WOOD's heavy Materials sector weighting and low P/E ratio present a strong valuation case, but watch for economic growth and seasonal trends. Technical analysis indicates key support near $74, with potential resistance at $80; a breakdown could target $63. Use limit orders due to low liquidity.
The Case For WOOD In 2025
Lumber prices could surge due to lower interest rates, pent-up housing demand, and infrastructure projects under the new U.S. administration. The iShares Global Timber & Forestry ETF is highly sensitive to lumber prices and could offer value at current levels, despite recent underperformance. The bullish case for 2025 includes declining short-term rates, robust housing demand, potential tariffs on Canadian lumber, and wildfire rebuilding efforts.
WOOD: Lumber Sits And Waits For A Rate Cut
Physical lumber futures remain in a narrow trading range, with prices staying under $150 in 2024. Lumber futures have experienced a consolidation period, leading to a narrower range between annual highs and lows. Despite efforts to increase liquidity, lumber futures remain highly illiquid, making trading and investing challenging.
