In following some of the endowment funds of Princeton/ Harvard which use timber as part of their real asset portfolio diversifiers I think this could be a great option for smaller individuals that cannot go out and by timberlands like the institutions can. I think this is also part of the whole growing global demand for commodities as the populations increase. Any comments regarding CUT are welcomed.
I'm with you, I compare this etf to PHO which tracks water related stocks. I think both water/timber will be resources in much demand as population increases and emerging markets developing their infrastructures. PHO has been getting slammed lately as well. If CUT drops by much more I will be adding to my position as I have a 20 yr time horizon. I almost pulled the trigger this morning on CUT but I was busy adding to some other much more beaten down positions. Good luck!
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I'm referring to using index's whether they be mutual funds or ETFs. As a small investor I can hopefully have outsized returns by having proper asset allocation, such as- historically small caps have outperformed large caps so my small cap exposure is more then what is traditionaly recommended as well as I have a larger then normal percentage of commodities (real assets) in my portfolio but then I have sub percentages with in that such as CUT being 20% of my commodity holdings but CUT only accounts for 2% of my overall portfolio. I can adjust percentages based on my perception of the global economy as well as my personal factors such as having more bond exposure when I get older.
I think that the low volume is a reason for the swings but one thing is encouraging is the volume seems to be increasing as more investors realize that this etf is out there and some of the benefits of holding timber related stocks in a portfolio of the long term.