iShares Global Timber & Forestry ETF

WOOD

Market cap $229M

U.S. sawmills say tariffs, shrinking export markets and competition from cheaper wood alternatives are driving a surge in closures that threatens the hardwood industry.

I am concluding my research on the forest industry with the iShares Global Timber & Forestry ETF. The companies I have previously covered account for ~25% of WOOD's 225.6 million AUM. The Invesco MSCI Global Timber ETF is WOOD's closest competitor, with a $41.2 million AUM. Smaller size is synonymous with thinner liquidity, as reflected by a higher median bid-ask spread. Despite lower liquidity, CUT's total expense ratio of 1.02% is ~2.5x higher than WOOD's 0.40%. Considering their highly similar portfolios, it is difficult to justify such a spread.

He warned that tariffs on upholstered furniture, kitchen cabinets and bathroom vanities will jump on Jan. 1, 2026, unless foreign nations are able to reach trade agreements.

Builders are sensitive to lumber pricing. But they are likely to weather the new tariffs, one analyst says.

US President Donald Trump ordered 10% tariffs on imports of softwood timber and lumber, as well as 25% levies on kitchen cabinets, vanities and upholstered wood products. The tariffs are set to apply from Oct. 14, with some increases targeted to take effect Jan. 1, according to a proclamation signed Monday.

The White House set a relatively low tariff on imports of timber and lumber, and a significantly higher tariff on furniture and kitchen cabinets.

Timber ETFs: WOOD's Growth Potential Vs. CUT's Defensive Position

Over the last 100 trading days, or roughly five months, the S&P 500 Index (SPX) has surged more than 25%.

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.

Lumber is in the spotlight as the National Association of Home Builders and the U.S. Lumber Coalition disagree about what's behind the U.S. housing market experiencing a slump.