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Should You Invest in the Guggenheim MSCI Global Timber ETF (CUT)?
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Designed to provide broad exposure to the Materials - Timber segment of the U.S. equity market, the Guggenheim MSCI Global Timber ETF (CUT - Free Report) is a passively managed exchange traded fund launched on 11/09/2007.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Materials - Timber is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 4, placing it in top 25%.
Index Details
The fund is sponsored by Invesco Powershares. It has amassed assets over $233.14 M, making it the largest ETF attempting to match the performance of the Materials - Timber segment of the U.S. equity market. CUT seeks to match the performance of the MSCI ACWI IMI Timber Select Capped Index before fees and expenses.
The MSCI ACWI IMI Timber Select Capped Index reflects the performance of those stocks in the MSCI ACWI Investable Market Indexes that are engaged in the ownership and management of forests and timberlands and production of finished products which use timber as raw material.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.55%, making it the most expensive product in the space.
It has a 12-month trailing dividend yield of 1.51%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Weyerhaeuser Co (WY - Free Report) accounts for about 5.24% of total assets, followed by Upm-Kymmene Oyj (UPM FH) and Amcor Ltd/australia (AMC - Free Report) .
The top 10 holdings account for about 44.50% of total assets under management.
Performance and Risk
The ETF has added roughly 3.99% and is up about 21.72% so far this year and in the past one year (as of 05/08/2018), respectively. CUT has traded between $26.74 and $34.19 during this last 52-week period.
The ETF has a beta of 1.10 and standard deviation of 16.22% for the trailing three-year period, making it a medium risk choice in the space. With about 74 holdings, it effectively diversifies company-specific risk.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should You Invest in the Guggenheim MSCI Global Timber ETF (CUT)?
Designed to provide broad exposure to the Materials - Timber segment of the U.S. equity market, the Guggenheim MSCI Global Timber ETF (CUT - Free Report) is a passively managed exchange traded fund launched on 11/09/2007.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Materials - Timber is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 4, placing it in top 25%.
Index Details
The fund is sponsored by Invesco Powershares. It has amassed assets over $233.14 M, making it the largest ETF attempting to match the performance of the Materials - Timber segment of the U.S. equity market. CUT seeks to match the performance of the MSCI ACWI IMI Timber Select Capped Index before fees and expenses.
The MSCI ACWI IMI Timber Select Capped Index reflects the performance of those stocks in the MSCI ACWI Investable Market Indexes that are engaged in the ownership and management of forests and timberlands and production of finished products which use timber as raw material.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.55%, making it the most expensive product in the space.
It has a 12-month trailing dividend yield of 1.51%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Weyerhaeuser Co (WY - Free Report) accounts for about 5.24% of total assets, followed by Upm-Kymmene Oyj (UPM FH) and Amcor Ltd/australia (AMC - Free Report) .
The top 10 holdings account for about 44.50% of total assets under management.
Performance and Risk
The ETF has added roughly 3.99% and is up about 21.72% so far this year and in the past one year (as of 05/08/2018), respectively. CUT has traded between $26.74 and $34.19 during this last 52-week period.
The ETF has a beta of 1.10 and standard deviation of 16.22% for the trailing three-year period, making it a medium risk choice in the space. With about 74 holdings, it effectively diversifies company-specific risk.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.