iShares Global Timber & Forestry ETF (NASDAQ: WOOD)

Latest news for iShares Global Timber & Forestry ETF (NASDAQ:WOOD)

iShares Global Timber & Forestry ETF

Basic Materials

Consumer Cyclical

Real Estate

Other

The Fund seeks to track the investment results of the S&P Global Timber & Forestry Index; the Underlying Index, which is composed of 29 of the largest publicly traded companies engaged in the ownership, management or upstream supply chain of forests and timberlands. These include forest products companies, timber real estate investment trusts; REITs, paper products companies, paper packaging companies and agricultural products companies.

Weyerhaeuser Co.

Svenska Cellulosa SCA AB B

Suzano Sa

Stora Enso Oyj

Smurfit Kappa Group Plc

International Paper Co.

West Fraser Timber Co Ltd

Potlatchdeltic Corp

Rayonier Inc

Mondi Plc

wall street ai11

Biotech

Equities

Large Cap

Market Summary

Mid Cap

REIT

Sector ETFs

Broad U.S. Equity ETFs

Specialty ETFs

Health Care

Commodities

Small Cap

Econ #s

Federal Reserve

Markets

Tech

ETFs

AAUKF

COPX

SPDR Dow Jones Industrial Average ETF Trust

FILL

iShares Dow Jones US Broker Dealers Index Fund

iShares Dow Jones US Insurance Index Fund

iShares Dow Jones US Regional Banks Index Fund

iShares U.S. Digital Infrastructure and Real Estate ETF

IDGT

iShares Dow Jones US Oil & Gas Exploration & Production Index Fund

iShares Dow Jones US Oil Equipment & Services Index Fund

iShares Dow Jones US Pharmaceuticals Index Fund

iShares Dow Jones US Health Care Provides Index Fund

iShares Dow Jones US Medical Devices Index Fund

ILIT

iShares Dow Jones US Aerospace & Defense Index Fund

iShares Dow Jones US Homenstruction Index Fund

iShares Trust Dow Jones US Financial Services Index Fund

iShares Dow Jones Transportation Average Index Fund

PAAS

PICK

iShares FTSE NAREIT Mortgage PLUS Capped Index Fund

iShares FTSE NAREIT Residential PLUS Capped Index Fund

RING

SLVP

iShares PHLX SOX Semiconductor Sector Index Fund

SOXX

iShares S&P Global Timber & Forestry Index Fund

WOOD

XLRE

Select Sector SPDR-Consumer Discretionary

Performance in April 2024: Utilities lead, real estate lags. S&amp;P 500, Nasdaq 100, Dow Jones Industrial Average, small-cap and large-cap indices all decline.

April Showers On Wall Street:  Miners, Utilities Emerge As Bright Spots In Gloomy Market

News

DITHF

International Paper provided update on possible offer for DS Smith. Significant synergies expected from business combination to boost margins and EPS.

London Calling: International Paper Eyes Secondary listing As Part Of Proposed DS Smith Combination

Retail investors can make money in the commodities markets. Lumber is a prime example right now.

The soaring prices of lumber have become mainstream news. The price per thousand board feet has moved from $320 to $1,675 over the past year, the highest it has ever been.

2 ETFs To Play The Lumber Shortage

Woodbois Ltd

Woodbridge Liquidation Trust

WOODBROOK GROUP HLDGS by Woodbrook Group Holdings Inc.

Woodbrook Group Holdings Inc

Woodcoin

WOODLANDS FINL SVCS CO by Woodlands Financial Services Co.

Woodlands Financial Services Co

Woodsboro Bk MD

Woodside Energy Group Limited American Depositary Shares, each representing one Ordinary Share

Woodside Energy Group Ltd

WOODSIDE ENERGY GROUP LTD by Woodside Energy Group Ltd.

WOODSTOCK HOLDINGS INC by Woodstock Holdings, Inc.

Woodstock Holdings Inc

Woodward Inc

As April comes to a close, it&#8217;s time to compile the rankings for the top-performing sector and industry exchange-traded <a href="https://www.benzinga.com/etfs">funds of the month.</a>
Taking a broader look at the stock market, the S&amp;P 500 Index, represented by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), finished April on a downturn, declining by approximately 3%. This marks the end of a five-month streak of gains.
Similarly, the tech-heavy Nasdaq 100, tracked by the Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), experienced a 3.5% decline.
Among large-cap indices, blue-chip stocks showed slight underperformance, with the SPDR Dow Jones Industrial Average ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) slipping by 4.5%.
Small-cap stocks, represented by the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>), plummeted by over 6%, marking their worst performance since October 2023.
Overall, it has been a challenging month for the stock market, primarily due to inflation surprises surpassing expectations. This has led to a recalibration of market expectations regarding potential Federal Reserve rate cuts.
Additionally, complex global geopolitical tensions have emerged, notably between Israel and Iran, alongside the ongoing issue in the Gaza Strip.
May is anticipated to start with a crucial event as investors await the Federal Reserve Open Market Committee <a href="https://www.benzinga.com/general/macro-notification/24/04/38526201/is-hawkish-shift-on-inflation-imminent-wall-street-analysts-traders-brace-for-fed-impa">(FOMC) meeting on Wednesday. </a>
While no interest rate changes are expected, all eyes will be on Fed Chair Jerome Powell&#8216;s remarks to assess the Fed&#8217;s stance in response to recent inflation surprises.
Read also: <a href="https://www.benzinga.com/general/macro-notification/24/04/38491988/federal-reserve-meeting-preview-high-interest-rates-need-more-time-to-work-bank-of-ame">Federal Reserve Meeting Preview: High Interest Rates &#8216;Need More Time To Work,&#8217; Bank of America Says</a>
<h2 class="wp-block-heading">Performance Of Sector ETFs In April 2024</h2>
At the sector level, only the utilities sector managed to avoid losses for the month, rising by 2.1%.
The largest stock contributors to the utilities&#8217; performance in April are NextEra Energy, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEE#NYSE">NEE</a>), The Southern Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SO#NYSE">SO</a>), Dominion Energy, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/D#NYSE">D</a>) and NRG Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NRG#NYSE">NRG</a>) which showed monthly gains between 4% and 8%. 
Energy stocks remained broadly stable, while the other nine S&amp;P 500&#8217;s sectors showcased losses.
Real estate experienced the worst performance, down by over 7%, dragged down by its high sensitivity to interest rates, as Treasury yields increase across the board during the month. 
Following real estate, the technology and healthcare sectors also showed poor performance in April.
<h4 class="wp-block-heading">April&#8217;s Best And Worst Sector ETFs: Utilities Lead, Real Estate Lags</h4>
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Sector</th>
<th>April 2024 performance</th>
</tr>
</thead>
<tbody>
<tr>
<td>Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>)</td>
<td>2.06%</td>
</tr>
<tr>
<td>Energy&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>)</td>
<td>0.01%</td>
</tr>
<tr>
<td>Consumer Staples&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>)</td>
<td>-1.11%</td>
</tr>
<tr>
<td>Industrials&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLI#NYSE">XLI</a>)</td>
<td>-3.23%</td>
</tr>
<tr>
<td>Consumer Discretionary&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>)</td>
<td>-3.68%</td>
</tr>
<tr>
<td>Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>)</td>
<td>-3.85%</td>
</tr>
<tr>
<td>Materials&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLB#NYSE">XLB</a>)</td>
<td>-4.13%</td>
</tr>
<tr>
<td>Communication Services Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>)</td>
<td>-4.24%</td>
</tr>
<tr>
<td>Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>)</td>
<td>-4.78%</td>
</tr>
<tr>
<td>Health Care&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLV#NYSE">XLV</a>)</td>
<td>-4.85%</td>
</tr>
<tr>
<td>Real Estate&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>)</td>
<td>-7.83%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Data as of Apr. 30, 2024 2:50 p.m. EDT</figcaption></figure>
<h2 class="wp-block-heading">Performance Of Industry ETFs In April 2024</h2>
Based on the industry ETF list provided by BlackRock Inc.&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>) iShares, only five out of the 25 industries managed to report gains in April. Among them, miners did well across the board, with silver, copper, and gold mining stocks reporting robust gains. 
Standout contributors to the mining industry&#8217;s outperformance in April were Pan American Silver Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PAAS#NYSE">PAAS</a>), up over 20%, Newmont Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEM#NYSE">NEM</a>), up 14%, Anglo American plc (OTCPK: AAUKF), up over 40%
Energy producers also managed to end the month in the green.
On the bottom side of the industry rankings, homebuilders, transportation, biotech stocks, digital infrastructure and real estate all report losses between 7% and 9.6% in April.
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>ETF Name</th>
<th>Performance</th>
</tr>
</thead>
<tbody>
<tr>
<td>iShares MSCI Global Silver and Metals Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLVP#NYSE">SLVP</a>)</td>
<td>12.11%</td>
</tr>
<tr>
<td>iShares Copper and Metals Mining ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COPX#NYSE">COPX</a>)</td>
<td>9.50%</td>
</tr>
<tr>
<td>iShares MSCI Global Gold Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RING#NYSE">RING</a>)</td>
<td>5.93%</td>
</tr>
<tr>
<td>iShares MSCI Global Metals &amp; Mining Producers ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PICK#NYSE">PICK</a>)</td>
<td>2.81%</td>
</tr>
<tr>
<td>iShares MSCI Global Energy Producers ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FILL#NYSE">FILL</a>)</td>
<td>2.46%</td>
</tr>
<tr>
<td>iShares U.S. Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ITA#NYSE">ITA</a>)</td>
<td>-1.16%</td>
</tr>
<tr>
<td>iShares U.S. Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IEO#NYSE">IEO</a>)</td>
<td>-1.37%</td>
</tr>
<tr>
<td>iShares Residential and Multisector Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REZ#NYSE">REZ</a>)</td>
<td>-1.66%</td>
</tr>
<tr>
<td>iShares Lithium Miners and Producers ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ILIT#NYSE">ILIT</a>)</td>
<td>-3.30%</td>
</tr>
<tr>
<td>iShares U.S. Broker-Dealers &amp; Securities Exchange ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAI#NYSE">IAI</a>)</td>
<td>-3.74%</td>
</tr>
<tr>
<td>iShares U.S. Financial Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYG#NYSE">IYG</a>)</td>
<td>-3.88%</td>
</tr>
<tr>
<td>iShares Expanded Tech Sector ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IGM#NYSE">IGM</a>)</td>
<td>-4.37%</td>
</tr>
<tr>
<td>iShares Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NYSE">SOXX</a>)</td>
<td>-4.40%</td>
</tr>
<tr>
<td>iShares U.S. Healthcare Providers ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IHF#NYSE">IHF</a>)</td>
<td>-4.79%</td>
</tr>
<tr>
<td>iShares U.S. Insurance ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAK#NYSE">IAK</a>)</td>
<td>-4.85%</td>
</tr>
<tr>
<td>iShares U.S. Regional Banks ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAT#NYSE">IAT</a>)</td>
<td>-5.11%</td>
</tr>
<tr>
<td>iShares U.S. Pharmaceuticals ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IHE#NYSE">IHE</a>)</td>
<td>-5.38%</td>
</tr>
<tr>
<td>iShares U.S. Oil Equipment &amp; Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IEZ#NYSE">IEZ</a>)</td>
<td>-5.45%</td>
</tr>
<tr>
<td>iShares Mortgage Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REM#NYSE">REM</a>)</td>
<td>-5.57%</td>
</tr>
<tr>
<td>iShares U.S. Medical Devices ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IHI#NYSE">IHI</a>)</td>
<td>-5.75%</td>
</tr>
<tr>
<td>iShares Global Timber &amp; Forestry ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WOOD#NYSE">WOOD</a>)</td>
<td>-6.20%</td>
</tr>
<tr>
<td>iShares Expanded Tech-Software Sector ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IGV#NYSE">IGV</a>)</td>
<td>-6.76%</td>
</tr>
<tr>
<td>iShares U.S. Digital Infrastructure and Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IDGT#NYSE">IDGT</a>)</td>
<td>-7.12%</td>
</tr>
<tr>
<td>iShares Biotechnology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBB#NYSE">IBB</a>)</td>
<td>-7.23%</td>
</tr>
<tr>
<td>iShares U.S. Transportation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYT#NYSE">IYT</a>)</td>
<td>-8.34%</td>
</tr>
<tr>
<td>iShares U.S. Home Construction ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ITB#NYSE">ITB</a>)</td>
<td>-9.60%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Data as of Apr. 30, 2024 3:15 p.m. EDT</figcaption></figure>
Now read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38497224/ai-data-centers-drive-electricity-demand-goldman-sachs-picks-16-stocks-to-play-the-">AI Data Centers Drive Electricity Demand: Goldman Sachs Picks 16 Stocks To Play The Trend</a>
Image generated using artificial intelligence via Midjourney.

International Paper Company&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IP#NYSE">IP</a>) shares are trading higher after it provided an update on its possible offer for&nbsp;DS Smith plc&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/DITHF#OTC">DITHF</a>).
International Paper confirmed significant progress in reciprocal due diligence as facilitated by the&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/04/n38087168/further-statement-regarding-possible-offer-for-ds-smith-plc" rel="noreferrer noopener">DS Smith Board and Management.</a>
As part of the combination, International Paper intends to seek a secondary listing of its shares on the London Stock Exchange.
Mark Sutton, Chairman and CEO said, &#8220;Bringing International Paper together with DS Smith is a logical next step in International Paper&#8217;s strategy to create value by strengthening our packaging businesses in North America and Europe. By combining the strengths of both companies, we believe we can enhance our offering of sustainable packaging solutions for customers in attractive and growing markets.&#8221;
Synergies: International Paper expects the business combination to generate significant synergies and drive value creation for both companies&#8217; shareholders.
The Directors expects the combined International Paper and DS Smith to deliver pre-tax cash synergies of at least $514 million (£407 million) on an annual run-rate basis by the end of the fourth year following completion of the combination.
Of this, $474 million (£376 million) of cost synergies is expected to be derived from the operational synergies across the combined network of mills, box plants, and global supply chain and reduction of duplicative corporate and business overhead expenses.&nbsp;
International Paper anticipates the total costs to achieve the synergies to be about $370 million (£293 million).
The company projects about 33% of these synergies to be achieved by the end of the first year following completion, with roughly 66% and 95% achieved by the end of the second and third years,&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">all on a run-rate basis, respectively</a>.
The business combination is expected to boost International Paper&#8217;s margins through synergies and immediately accretive to EPS.&nbsp;
As of December 31, 2023, cash and temporary investments&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/02/36893318/why-international-paper-shares-are-falling-today" rel="noreferrer noopener">stood at $1.11 billion</a>.
&nbsp;Investors can gain exposure to the stock via&nbsp;IShares Global Timber &amp; Forestry ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WOOD#NASDAQ">WOOD</a>) and&nbsp;Invesco MSCI Global Timber ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CUT#NYSE">CUT</a>).
Price Action: IP shares are up 0.91% at $39.42 on the last check Thursday.&nbsp;

Retail investors can make money in the commodities markets. Lumber is a prime&nbsp;example right now.
The soaring prices of lumber have become mainstream news. The price per thousand board feet has moved from $320 to $1,675 over the past year, the highest it has ever been.
Hedge funds use complicated strategies to trade these markets. The strategies include the use of derivatives, swaps&nbsp;and futures. But there are also ways for everyday investors to get exposure to these markets.
They can use ETFs, such as the&nbsp;iShares Global Timber &amp; Forestry ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/wood#NASDAQ">WOOD</a>) and the Invesco MSCI Global Timber ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cut#NYSE">CUT</a>).
See Also: <a href="https://www.benzinga.com/news/21/04/20645960/lumber-prices-soar-amid-shortage-what-you-need-to-know">Lumber Prices Soar Amid Shortage: What You Need To Know</a>
WOOD is designed to follow an index of equities that are in the timber and forest industry. As the price of lumber increases, many of these companies become more profitable.
If lumber prices continue to move higher, so should the price of WOOD.
<img alt="wood.png" src="https://www.benzinga.com/files/u344550/wood.png" style="height:400px; width:640px" />
CUT seeks to track the MSCI ACWI IMI Timber Select Capped Index (Index). This index measures the performance of securities that own and manage forests, timberlands and production of products that use timber as raw materials.
If lumber prices continue to soar, the price of CUT should keep moving higher.
<img alt="cut.png" src="https://www.benzinga.com/files/u344550/cut.png" style="height:400px; width:744px" />

Screen capture from Thursday&#39;s episode of Bloomberg TV&#39;s &quot;What&#39;d You Miss&quot;.
Wood Versus Wood
On Bloomberg TV&#39;s market wrap-up show Thursday, &quot;<a href="https://www.bloomberg.com/news/videos/2021-05-05/the-ceo-behind-one-of-cathie-wood-s-favorite-stocks-video" rel="nofollow">What&#39;d You Miss</a>&quot;, anchor Joe Wiesenthal presented the chart above comparing the performance over the last year of the iShares Global Timber &amp; Forestry ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/wood#NASDAQ">WOOD</a>) to Cathie Wood&#39;s flagship Ark Innovation ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/arkk#NYSE">ARKK</a>). Here&#39;s an easier-to-read version of that chart.&nbsp;
<img alt="Chart" src="https://static.seekingalpha.com/uploads/2021/5/7/saupload_b36cc765d2480ccdb9eeae630d5f6d0c.png" style="height:366px; width:624px" />
As you can see, the lines are close to intersecting, as WOOD continues its steady march higher, while ARKK continues to roll over from its high earlier this year.&nbsp;
Where Both ETFs Go From Here
We thought it might be interesting to scan for optimal hedges on both ETFs, not just to see how much it would cost to hedge them, but to see what we could infer about their respective prospects over the rest of the year. We used our&nbsp;<a href="https://apps.apple.com/us/app/portfolio-armor/id394951144" rel="nofollow">hedging app</a>&nbsp;to do so in the video below.&nbsp;
<iframe height="360" src="https://seekingalpha.com/embed/14746" width="640"></iframe>
In a nutshell, here&#39;s what we found:&nbsp;
<ul>
<li>The timber ETF is much cheaper to hedge using optimal, or least expensive put options, suggesting option market participants see less risk of it declining significantly this year than the Ark Innovation Fund.&nbsp;</li>
<li>When scanning for optimal collars to hedge both ETFs, ARKK was less expensive to hedge than WOOD, given the higher bids on out-of-the-money call options on the tech ETF. That suggests options market participants see a higher chance of ARKK posting &gt;20% gains over the rest of the year than WOOD doing so.&nbsp;</li>
</ul>
We looked at options expiring closest to six months out for both ETFs, but if you&#39;re considering adding either to your portfolio and your time horizon is different, you can of course use a similar approach with closer or further out options expiration dates.&nbsp;

Opinion

ARKK

Wood Versus Wood: The Performance Of Cathie Wood's Ark Innovation Fund Converges With That Of The Global Timber & Forestry ETF. Where Both Go From Here.

Lumber Futures Jump By Expanded $29 Exchange Limit

BALB

USA Official Says Seen Significant Impacts To Timber, Cotton And Peanuts Due To Storm Michael

From his campaign days, Trump has indicated that he wants to renegotiate the North American Free Trade Agreement (NAFTA) or totally remove it. The agreement had tied up the U.S., Canada and Mexico for more than two decades. The deal permitted manufacturers and farmers to do seamless business.
Now, this agreement may be threatened as Trump intends to bring jobs offshored to countries like Mexico back to America.
Against these circumstances, we highlight the ETF areas that should be closely watched.
<h3>
	Mexico and Canada</h3>
Analysts from Goldman Sachs noted that &quot;exports to Mexico account for just 1% of U.S. GDP. Similarly, revenues to Mexico and Latin America total just 3% of S&amp;P 500 sales.&quot; While it makes up just a fraction of the U.S. economy, <a href="https://finance.yahoo.com/news/happens-trump-pulls-us-nafta-212235421.html">NAFTA specifically represents</a> substantial portions of Mexico and Canada&#39;s GDP.
&quot;Trade has jumped sharply between the United States and Mexico since NAFTA&#39;s signing, from roughly $290 billion in 1993 to more than $1.1 trillion in 2016. That compares to the $650 billion in bilateral trade the U.S. did with China last year,&quot; as per a note issued by Deutsche Bank analysts.
So, the adverse impact on Canadian and Mexican currency is expected. Guggenheim CurrencyShares Canadian Dollar Trust ETF FXC may be hit hard. U.S. foreign direct investment in Mexico jumped from $15 billion to more than $100 billion from 1993 to 2016. Needless to say, these issues do not go well with country ETFs like&nbsp;iShares MSCI Mexico Capped&nbsp;EWW and&nbsp;iShares MSCI Canada&nbsp;ETF&nbsp;EWC.
<h3>
	Auto</h3>
A huge portion of U.S. trade deficit with Mexico is from the auto sector. Goldman Sachs also indicated that the S&amp;P 500 auto&nbsp;component companies have returned about 52% and electronic equipment firms&nbsp;have offered investors 51% returns compared with 36% provided by the S&amp;P 500 on average. Now, these auto stocks may fall flat if the United States walks out of NAFTA. So, First Trust NASDAQ Global Auto ETF CARZ will be in focus.
<h3>
	Timber</h3>
Already, U.S. President Trump announced plans to slam a tariff of up to 24% on imports from the Canadian softwood lumber industry. The Trump administration indicated that it would levy countervailing duties ranging from&nbsp;<a href="https://www.bloomberg.com/politics/articles/2017-04-24/trump-said-to-plan-20-tariff-on-canadian-softwood-lumber-j1wq4tyg">3% to 24.1%</a>&nbsp;on Canadian lumber producers, as reported by&nbsp;<a href="https://www.bloomberg.com/politics/articles/2017-04-24/trump-said-to-plan-20-tariff-on-canadian-softwood-lumber-j1wq4tyg">Bloomberg</a>.
Along with&nbsp;<a href="http://www.cnbc.com/2017/04/24/trumps-timber-tariff-will-have-a-big-impact-on-lumber-futures-market-housing-stocks.html">several traders</a>, we also believe the action, if it materializes, may lead lumber prices to scale up as lumber imports from Canada will now become costlier. And domestic lumber companies may also be able to charge some price premium in the face of lesser foreign competition. However, Canada has filed a wide-ranging case with the World Trade Organization -- over those and other tariffs that the United States has levied. iShares S&amp;P Global Timber &amp; Forestry Index Fund WOOD thus comes under focus.
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CARZ

ETFs To Watch If The U.S. Pulls Out Of NAFTA

In the wake of Hurricane Harvey and in anticipation of Hurricane Irma, some investors have been paying renewed attention to timber and forestry exchange-traded funds. The dominant names in that group are the Guggenheim MSCI Global Timber ETF (NYSE: <a class="ticker" href="/stock/cut#NYSE">CUT</a>) and the iShares Global Timber &amp; Forestry ETF (NASDAQ: <a class="ticker" href="/stock/wood#NASDAQ">WOOD</a>).
&nbsp;
Last week, CUT and WOOD rose 4.1 percent and 4.8 percent, respectively, with CUT, the Guggenheim offering, hitting an all-time high on Friday. WOOD, the iShares ETF, is up nearly 21 percent year-to-date while CUT is higher by 19 percent.
WOOD &ldquo;is the larger of the two funds, having debuted in June of 2008 and the ETF traded at a new 52-week high just yesterday [Sept. 7] before tailing off a bit. The fund only averages about 16,000 shares traded daily on a one-month trailing basis, so it is not exactly a popular or heavily trafficked fund,&rdquo; said <a href="http://streetonefinancial.com/">Street One Financial</a> vice president Paul Weisbruch in a note out Friday.&nbsp;
<h3>Inside The Timber ETFs</h3>
WOOD, which recently turned 9 years old, has $286.1 million in assets under management. The ETF tracks the S&amp;P Global Timber &amp; Forestry Index and holds 26 stocks. WOOD is a global ETF with U.S. timber names accounting for 40.3 percent of the fund&#39;s weight. Canada, Brazil and Japan combine for over a third of the ETF&#39;s geographic exposure.
CUT follows the MSCI ACWI IMI Timber Select Capped Index. That benchmark &ldquo;is designed to measure the performance of securities that are engaged in the ownership and management of forests and timberlands and production of finished products which use timber as raw material. The index captures large, mid and small-cap stocks across 23 developed markets countries and 23 emerging markets countries,&rdquo;<a href="https://www.guggenheiminvestments.com/etf/fund/cut-guggenheim-msci-global-timber-etf"> according to Guggenheim</a>.
CUT holds 77 stocks, or nearly triple the size of WOOD&#39;s roster. U.S. stocks account for almost 44 percent of the ETF&#39;s weight with Finland and the U.K. combining for 18 percent.
<h3>More Attention</h3>
It is possible that WOOD and CUT &ldquo;could certainly become active given the headlines regarding the devastating weather and the inevitable rebuilding process that will take place,&rdquo; said Weisbruch. &ldquo;WOOD has seen respectable inflows year-to-date, to the tune of about $31 million in while CUT has seen modest outflows of about $10 million.&rdquo;
Related Links:
<a href="https://www.benzinga.com/trading-ideas/long-ideas/17/09/10030956/make-america-great-again-with-this-new-etf">MAGA With This ETF</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/17/09/10030947/goldman-sachs-enters-junk-bond-etf-fray">A New Junk Bond ETF&nbsp;</a>
<iframe src="https://fast.wistia.net/embed/iframe/ustlueul34" title="Wistia video player" allowtransparency="true" frameborder="0" scrolling="no" class="wistia_embed" name="wistia_embed" allowfullscreen mozallowfullscreen webkitallowfullscreen oallowfullscreen msallowfullscreen width="640" height="360"></iframe>
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Image Credit: Hurricane Matthew, public domain

Long Ideas

Topics

Events

Trading Ideas

General

Hurricane Investment Prep: Timber ETFs

Investors were enthused earlier this week by some strong housing data. New home sales jumped 12.4 percent in July to a seasonally adjusted rate of 654,000 annual units, well ahead of economists&#39; estimate of 580,000 units.
Although the June number was revised lower to 582,000 from 592,000, the July report was enough to send homebuilders stocks and exchange-traded funds, such as the SPDR S&amp;P Homebuilders (ETF) (NYSE: <a class="ticker" href="/stock/xhb#NYSE">XHB</a>) and the iShares Dow Jones US Home Const. (ETF) (NYSE: <a class="ticker" href="/stock/itb#NYSE">ITB</a>) soaring.
 Robust housing data also stoked impressive activity in timber ETFs such as the Claymore/Clear Global Timber Index (ETF) (NYSE: <a class="ticker" href="/stock/cut#NYSE">CUT</a>) and the iShares S&amp;P Global Timbr &amp; Frstry Idx (NASDAQ: <a class="ticker" href="/stock/wood#NASDAQ">WOOD</a>).
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/top-stories/16/08/8383300/home-sizes-are-now-getting-smaller-here-is-what-you-need-to-know">Home Sizes Are Now Getting Smaller: Here's What You Need To Know</a></bzrelatedlink>
<h3>Simplicity Is Not Always The Best Policy</h3>
However, investors should be careful before considering CUT and WOOD to be adequate proxies for ITB, XHB or individual homebuilders shares. For starters, the advice is simply too, well, simple. Buying timber ETFs because wood is used in home construction seems like a good idea &mdash; in theory.
In reality, the advice is only marginally better than buying consumer discretionary stocks because its holiday shopping season (the best month periods of performance for the benchmark consumer discretionary ETF are in the first and third quarters, not the fourth) or buying healthcare stocks and ETFs because a Democrat is leading a presidential poll. Just check out biotech ETFs to confirm <a href="http://www.benzinga.com/general/biotech/16/08/8380788/it-could-be-an-interesting-ride-for-healthcare-etfs">how bad that advice is</a>.
Second, ITB and XHB, the homebuilders, are essentially entirely allocated to U.S. stocks. The same cannot be said of timber ETFs. For example, WOOD allocates just 44.3 percent of its weight to U.S. stocks. Additionally, it is a stretch to assume an ETF that allocates almost 23 percent of its weight to Japanese and Finnish stocks is adequately levered to U.S. home sales trends.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/news/earnings/16/08/8382194/homebuilders-in-focus-following-toll-earnings-ahead-of-housing-data">Homebuilders In Focus Following Toll Earnings, Ahead Of Housing Data</a></bzrelatedlink>
<h3>Why XHB, Peers?</h3>
XHB differs from rival homebuilders ETFs due to its robust exposure to the discretionary/retail side of the residential real estate industry. That includes an almost 8 percent weight to home improvement retailers, a group expected to deliver some of the most impressive earnings growth in the broader consumer discretionary sector.
Then there are correlations, which really tell the tale of the tape. XHB has a five-year correlation of 0.765 to both CUT and WOOD. Not weak, but not really that strong, either. The situation is worse with ITB, which is telling because ITB is more of a pure-play homebuilders fund than XHB. ITB&#39;s five-year correlations to CUT and WOOD are 0.697 and 0.706, respectively, <a href="http://www.sectorspdr.com/sectorspdr/tools/correlation-tracker/multiple-securities">according to State Street data</a>.
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Don't Use These ETFs To Play Housing Data

Financial Advisors

Short Ideas

First Trust ISE-Revere Natural Gas Index Fund

Market Vectors ETF Trust Market Vectors Gold Miners

Market Vectors RVE Hard Assets Producers ETF

iShares S&P GSSI Natural Resources Sector Index Fund

iShares Trust S&P Global Energy Sector Index Fund

iShares Dow Jones US Energy Sector Index Fund

PowerShares ETF Trust Dynamic Energy Exploration & Production Port

PowerShares Dynamic Energy Sector Portfolio

Rydex ETF Trust Rydex S&P Equal Weight Energy ETF

SPDR S&P Oil & Gas Equipment & Services ETF

Top 10 Commodity Producers ETFs

Before answering that, we should clarify there is no ETF devoted to the fictitious paper company made popular in the American version of "The Office," which airs on NBC. If a Dunder Mifflin ETF did exist, it would probably be the Guggenheim Timber ETF (NYSE: <a class="ticker" href="/stock/cut#NYSE">CUT</a>).

Avid fans of "The Office" might remember one of the episodes when Michael is preparing to start his own paper company and Jim tells him paper is a dying industry. There might be something to that. The ETF is off almost 14% in the past year and that number would be far worse if not for a curious 10% pop to start 2012.

S&amp;P Capital IQ rates CUT underweight and said in a recent note "now is not the time to add CUT to portfolios." 

To its credit, CUT has attracted $113.4 million in assets under management. That's an excellent total considering the ETF focus on a somewhat obscure niche and that its debut in late 2007, just as the housing market was weakening, could have meant this fund went to ETF graveyard. It obviously has not.

"From its initial price of $25, CUT fell to a low of $7.43 in early March of 2009. Subsequently, however, the ETF rose strongly over a two-year period until April 2011 when it nearly got back to its offering price by hitting $23.35. The ETF suffered for much of the balance of 2011 along with most materials stocks, and it was recently trading at $17.11. Due to the relatively limited number of companies and the narrow focus of this ETF, we think it has a higher risk profile than many other ETFs," S&amp;P Capital IQ said in its research note.

What CUT does do is hold 27 stocks with seven of the top10 holdings being paper or packing plays. CUT offers exposure to 10 countries with the U.S. and Japan accounting for 59% of that allocation. Brazil and South Africa give CUT some emerging markets exposure, but the rest of the country weights, including Finland, Sweden and Canada, are developed markets.

No, paper isn't the most exciting industry out there, no matter what Michael Scott says. And yes, S&amp;P's assessment could prove accurate. All that said, it pays to note perception is reality and what the perception of CUT, along with its rival the iShares S&amp;P Global Timber &amp; Forestry Index Fund (Nasdaq: <a class="ticker" href="/stock/wood#Nasdaq">WOOD</a>), is.

It is that these ETFs are plays on a recovering U.S. housing market. Indeed, there are <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/01/2277485/etf-showdown-the-battle-for-the-american-dream">ETFs for that very things</a>, but CUT might be worth a look along the same lines regardless of its lack of exposure to homebuilders.

CUT doesn't offer much in the way of yield, but active traders might want to give the ETF a whirl if it can move above the 200-day line around the $18.20 area. CUT has an expense ratio of 0.65%.

Analyst Color

Technicals

After-Hours Center

Analyst Ratings

Whatever Happened to...The Dunder Mifflin ETF?

Finally, a rail road ETF. That might be the sentiment of some traders and investors when learning of the five new sector ETFs rapidly growing issuer Global X filed plans for with the SEC late last week. 

Global X, the New York-based ETF issuer that has made a name for itself with a wide array of unique emerging markets and commodities-based ETFs, is looking to continue its impressive expansion with plans for five new ETFs, including the Global X Railroads ETF, which would track the FTSE Global Railroads Index.

That would be the first ETF exclusively tracking railroad operators and would face little in the way of competition as investors looking to get exposure to companies such as CSX (NYSE: <a class="ticker" href="/stock/csx#NYSE">CSX</a>) and Union Pacific (NYSE: <a class="ticker" href="/stock/unp#NYSE">UNP</a>) usually turn to the the iShares Dow Jones Transportation Index Fund (NYSE: <a class="ticker" href="/stock/iyt#NYSE">IYT</a>), which holds plenty of non-railroad names.

The firm has also filed plans for the Global X Toll Roads &amp; Ports ETF, which would track global companies that operate airports, seaports and toll roads. Since many of the companies that are involved in these businesses have steady, predictable cash flow, they often offer robust dividends, meaning the new Global X fund could be another option for income-starved investors.

Keeping with its tradition of introducing niche sector ETFs such as the Global X Fishing Industry ETF (NYSE: <a class="ticker" href="/stock/fisn#NYSE">FISN</a>), the firm has filed plans for the Global X Farm &amp; Timberland ETF and the Global X Cement ETF. 

The fifth fund Global X is planning the Global X Advanced Materials ETF, which, as ETFdb.com, notes could face competition from Global X's own Global X Lithium ETF (NYSE: <a class="ticker" href="/stock/lit#NYSE">LIT</a>) and the Market Vectors Rare Earths/Strategic Metals ETF (NYSE: <a class="ticker" href="/stock/remx#NYSE">REMX</a>).

The timberland ETF faces obvious competition from the Guggenheim Timber ETF (NYSE: <a class="ticker" href="/stock/cut#NYSE">CUT</a>) and the iShares S&amp;P Global Timber &amp; Forestry Index Fund (NYSE: <a class="ticker" href="/stock/wood#NYSE">WOOD</a>).

Tickers and expense ratios for the newly proposed funds were not disclosed in the Global X filing. Including the aforementioned group of five, Global X has filed plans to introduce 15 new funds over the past several weeks. 

If all of those funds come to market, the firm would have 50 ETFs in its stable. Of its current lineup of 35 ETFs, Global X has introduced about half in 2011. The firm had $1.73 billion in assets under management as of July 21.

Dividends

New ETFs

Intraday Update

FISN

Market Vectors Rare Earth/Strategic Metals Etf

REMX

Global X Files Plans For Five More Sector ETFs

I'm forcing myself to turn away from the obvious debt ceiling story that's playing out right now.
For the record, I don't believe that the debt ceiling will have any long term effects that won't be completely superseded by the fact that our debts are already much too high. We'll default sooner or later. The debt ceiling is an imaginary line that will be crossed regardless of how politicians vote. Interest rates will rise. Social Security will go unfunded. 
All of these things will happen - not because our leaders failed to act to raise taxes or to cut spending - but because our debts are so incredibly large and our leaders so clueless that they can't even conceive of how to solve the problem. 
I'd prefer sooner for the simple reason that our debts are a millstone on the necks of honest, thrifty Americans who just want to live their lives and not see their hard earned cash inflated or taxed away by know-nothing politicians on both sides of the aisle.
So, instead of worrying about the debt ceiling, and making it a mantra to be repeated over and over until it's "fixed" I suggest breaking out of that line of thinking and looking for opportunities.
One of the most interesting opportunities I've found recently is in timber.
I don't mean you should go out and buy trees or 2X4s - but if you're interested in a long-term investment, you should look into the iShares S&amp;P Global Timber &amp; Forestry Fund (NYSE: WOOD).
This ETF holds a variety of timber, timberland and other wood-related stocks - including the Chinese timber giant Sino Forest Corporation - which I realize has recently been creamed in yet another fraudulent investment scandal.
Another way to look at the Sino situation is that it's selling for 70% cheaper than it did just a couple months ago. Not a bad time to buy - if the company is on the up and up. And even if it isn't the fund holds less than 10% of its assets in Sino - so it's not the end of the world if it goes belly up.
This ETF also has good diversification to counter-balance any bad news out of a single economy - as you can see from the pie chart below:
 
<div align="center"> <img src="http://img.bfpublishing.com/RP_7-26-11_Chart.png" /> </div>
 
On the bright side, timber is one of those long term investments that can reward your portfolio in good times, and protect it in bad.
That's because timber literally grows on trees. Most timber-grade trees grow an average of 6% per year - which means that every year you don't cut them down, they're worth about 6% more.
That's real growth you can count on - because while we can't say for sure what will happen with the world economy, we can probably safely say that trees will keep growing, and timber will be in demand eventually. 
And while we wait for timber demand to pick up, this ETF pays a dividend yield that's competitive with 10 year US Treasuries. 
I'd look into this fund only if you are interested in a long-term holding with a modest income aspect. Trading in and out of timber investments is probably more trouble than it's worth, but for the long haul, wood is as stable an investment trend as you're likely to find.

Agriculture - Not the Debt Ceiling

For a political party that lives in the Reagan Glory Days of the 1980s, it's surprising to see one of their potential presidential candidates looking to take the party back to the 60s. That is to say the 1860s.

David Duke, the former KKK leader who is surprisingly comfortable in both Republican and Tea Party circles, announced Tuesday he is exploring a bid for the 2012 Republican Presidential nomination. Oh. My. God. Could this race (no pun intended) get any more absurd?

We've got bankruptcy king Donald Trump lecturing people on better government financing. We've got Sarah Palin who claims to be pro-life but aborts every task she undertakes. We've got Mitt Romney and Jon Huntsman, two nice guys who happen to be Mormon; Romney a creepy Mormon who has those dead serial killer eyes, and Huntsman, whose last job was working for Obama. There's also Michele Bachmann, who is pretty sure Paul Revere warned the British that the Beatles were coming.

Oh sure, there's also Newt Gingrich, whose very political career is flaming out like a one-hit rapper as he bling-blings his way through Tiffany's and back into the public sector. And, umm, Rick Santorum's frothy name and anti-gay sentiment that makes the other GOP bigots seem tolerable. Apparently, Herman Cain is still running as the token black guy, disappointing Alan Keyes fans everywhere. Oh, and Tim Pawlenty, who is hated even in his home state, and Thaddeus McCotter, who sounds like the kind of guy Michele Bachmann would think was a Founding Father, but is actually a nutbag from Michigan.

The only Republicans who make any sense are Ron Paul and Gary Johnson, and they can't get two seconds of straight-face time from the media, what with all the buffoons on stage. And Duke? Well, he just doubles down on the buffoonery, doesn't he?

Make no mistake about it. Duke, if he enters the race, will hint at, flirt with, and flat out Willie Horton the race issue. Why? Well, gee, unemployment is high, Mexicans are immigrating in large numbers, and the President is black. For some folks, that's all the evidence they need that white people need to stand together (presumably under a Duke 2012 banner) and fight back against everyone else.

Duke dances around the issue. "I have no hatred of anyone," Duke says. "Just a love of my heritage and values." Aah, yes. His heritage and values. That would be the KKK he was Grand Wizard of, and whose racist ideology he still shills to a mindless horde of white-power zombies online.

The proof? He got kicked out of the Czech Republic for his anti-Semitism and Holocaust denial. He spent time in prison here in America, too, after pleading guilty to defrauding supporters and cheating on his taxes. He was sentenced to 15 months and is barred from running for state office in Louisiana.

Given the state of GOP politics today, who knows if Duke can pull it off and win the nomination. I know, as a pundit and analyst, a Duke-Obama match-up would either be the most dynamic or most obnoxious political campaigns of my lifetime.

Let's say, for the sake of argument, David Duke is the nominee for the GOP. What stocks might benefit?

Companies that sell white sheets What single piece of "clothing" could possibly sell better than a white sheet to Duke supporters? Racists of every banner could unite under the anonymity a clean, white sheet provides. Look for retailers such as Walmart (NYSE: <a class="ticker" href="/stock/wal#NYSE">WAL</a>) for lower-end racists and Bed, Bath &amp; Beyond (NASDAQ: <a class="ticker" href="/stock/bbby#NASDAQ">BBBY</a>) for higher-class racists.

Companies that sell timber Those klan rallies will need some solid lumber to keep the South in burning crosses well through the November elections, so perhaps companies such as Lowes (NYSE: <a class="ticker" href="/stock/low#NYSE">LOW</a>) and Home Depot (NYSE: <a class="ticker" href="/stock/hd#NYSE">HD</a>) could see a bump on lumber sales. If ETFs are more your style, there is a Lumber ETF out there (NASDAQ: <a class="ticker" href="/stock/wood#NASDAQ">WOOD</a>) that might meet your needs.

Or, you know, maybe Americans will come to their senses and realize that, regardless of party affiliation, political identification or economic viewpoints, there really is no room in the national political dialogue for racists like David Duke. His non-racial viewpoints, all of them, are covered plenty by the other candidates in the GOP field (and among independent candidates), leaving no reason to support Duke for anything other than his not-well-hidden racism.

Movers & Shakers

Politics

BBBY

David Duke Wants to Trade White Robe For White House in 2012 GOP Bid

Last night's episode of the American sitcom The Office was the first without star Steve Carell as the hapless regional manager of the fictional paper company Dunder Mifflin. While Will Ferrell did a terrific job as Carell's temporary replacement, one cannot deny a creeping sense that The Office may have finally jumped the shark, as they say. 

Well, you may not be able to invest in Dunder Mifflin (given what we've seen of its management over the past seven seasons, would you want to?), but are there any real-life alternatives worth a look? Here are five paper product stocks (and two timber ETFs) that haven't yet jumped the shark.

International Paper

Headquartered in Memphis, Tennessee, International Paper (NYSE: <a class="ticker" href="/stock/ip#NYSE">IP</a>) is one of the world's largest manufacturers of printing papers. The company delivered a larger-than-expected first-quarter profit, due in part to its global reach. During the quarter, International Paper also boosted its dividend above its pre-recession level. The dividend yield is 1.8%, and this year's earnings per share growth forecast is 11.8%. Analysts on average recommend buying International Paper. Its shares are trading at 11.4 times earnings estimates. They are also trading near their 52-week high of $32.42. Barrons recently suggested that the share price could go to $42 over the next year.

Weyerhauser

Weyerhauser (NYSE: <a class="ticker" href="/stock/wy#NYSE">WY</a>) is a leading U.S. forest products company; that is, it produces lumber and other wood products in addition to pulp and paper. This company delivered weaker-than-expected first-quarter earnings, but that was the company's fourth straight profitable quarter after a string of losses. Still, Scotia Capital downgraded the stock and Goldman lowered its earnings estimates in response to the report. Weyerhauser's long-term EPS growth forecast is only 2.5%, and its P/E and PEG ratios are unattractive. So it is no surprise that the stock has a consensus Hold rating and that the mean price target is only about a buck and a half higher than today's opening price. The share price is approximately 9% lower than it was three months ago.

MeadWestvaco

Richmond, Virginia-based MeadWestvaco (NYSE: <a class="ticker" href="/stock/mwv#NYSE">MWV</a>) specializes in office and school supplies, as well as product packaging such as cartons, boxes and covers. This company also reported better-than-expected first-quarter results, attributed in part to strong growth in its packaging business. MeadWestvaco's dividend yield is 2.9% and the long-term earnings per share growth forecast is 10.0%. The consensus recommendation of analysts shifted from holding to buying MWV in the past 60 days, and their mean price target is currently $38.40 per share. Shares are trading near the 52-week high of $34.37. The stock has outperformed the broader market year-to-date.

Rock-Tenn

Founded in 1936, Rock-Tenn (NYSE: <a class="ticker" href="/stock/rkt#NYSE">RKT</a>) manufactures packaging, paper products, merchandise displays and other goods. The Georgia-based company announced earlier this year that it would acquire competitor Smurfit-Stone Container (NYSE: <a class="ticker" href="/stock/sscc#NYSE">SSCC</a>) for $3.5 billion. Rock-Tenn has a dividend yield of 1.0% and a return on equity of 22.8%. Its shares are trading at 13.3 times earnings estimates, which is much lower than the industry average. The consensus recommendation of analysts remains to buy RKT despite a recent downgrade. The mean price target of $80.71 per share gives the stock plenty of room to run from today's opening price of $68.82. The stock has outperformed the broader market year-to-date.

Fibria Celulose

Fibria Celulose (NYSE: <a class="ticker" href="/stock/fbr#NYSE">FBR</a>) is headquartered in Sao Paulo, Brazil. The paper products and wood pulp producer harvests eucalyptus trees grown on renewable plantations. Since the beginning of the year, Fibria has seen upgrades from JPMorgan, Goldman, Deutsche Bank and Scotia Capital. As the global economic climate improves, the increased need for product packaging is also expected to grow. Fibria has a P/E ratio of 9.7, but it also has a PEG ratio of 2.5, suggesting overvaluation, as well as a long-term EPS growth forecast of just 7.8%. The share price is about 3% lower than it was at the beginning of the year; the stock has underperformed the broader market during that time.

Timber ETFs

If exchange traded funds are more to your liking, check out iShares S&amp;P Global Timber &amp; Industry Index (<a class="ticker" href="/stock/wood#">WOOD</a>), which is up about 8% year-to-date, and Guggenheim Timber (<a class="ticker" href="/stock/cut#">CUT</a>), which is up more than 10% year-to-date.

SSCC

Five Paper Stocks That Have Not Jumped the Shark (IP, WY, MWV, RKT, FBR, WOOD, CUT)

Sure, Friday's trading is probably going to be held hostage by the January jobs report, but that doesn't mean there aren't other opportunities for traders to take advantage of today. Here are a few ETFs that are going to be in play on the back of earnings reports from some of their top holdings.
1) Market Vectors Gaming ETF (NYSE: <a class="ticker" href="/stock/bjk#NYSE">BJK</a>): 
Let's see, Las Vegas Sands (NYSE: <a class="ticker" href="/stock/lvs#NYSE">LVS</a>) reported disappointing fourth-quarter revenue numbers after the bell Thursday and that name equals more than 11% of BJK's weight. The Las Vegas Sands news could be a drag on rival Wynn Resorts (Nasdaq: <a class="ticker" href="/stock/wynn#Nasdaq">WYNN</a>), which accounts for 7% of BJK. 
2) iShares MSCI All Peru Capped Index Fund (NYSE: <a class="ticker" href="/stock/epu#NYSE">EPU</a>): 
Credicorp (NYSE: <a class="ticker" href="/stock/bap#NYSE">BAP</a>), Peru's largest financial holding company and EPU's third-largest constituent at almost 14% of the ETF's weight reported a 6% jump in fourth-quarter profits on Thursday night, but how the market reacts to a 10.5% jump in operating costs and 9.7% rise in loan-loss provisions will be critical for Credicorp's and perhaps EPU's Friday performance.
3) Guggenheim Timber ETF (NYSE: <a class="ticker" href="/stock/cut#NYSE">CUT</a>) and/or the iShares S&amp;P Global Timber &amp; Forestry Index Fund (NYSE: <a class="ticker" href="/stock/wood#NYSE">WOOD</a>): Weyerhaeuser (NYSE: <a class="ticker" href="/stock/wy#NYSE">WY</a>) reports earnings before the bell and the company is the top holding in both CUT and WOOD, though the stock gets a bigger weight in WOOD at almost 9.5% compared almost 5.5% in CUT.

Earnings

Guidance

Emerging Market ETFs

Pre-Market Outlook

Movers

WYNN

In Focus: ETF Plays For Friday Earnings 

In the world of timber ETFs there are two. Yep, just two. Not even an ETN, which is strange considering there are timber futures trading here in the U.S., but we've got to focus on the options we do have access to and these two funds will be the focus of this week's ETF Showdown.
Like gold, coffee or oil, timber is a commodity and like so many other commodities, emerging markets demand is the driving force in the timber market. As ETFTrends recently pointed out, China is gobbling up pallets and packing materials, pulp and paper at rapid pace with no signs of a change in trend anytime soon.
Sounds like a good time to compare and contrast the Guggenheim Timber ETF (NYSE: <a class="ticker" href="/stock/cut#NYSE">CUT</a>) and the iShares S&amp;P Global Timber Index Fund (NYSE: <a class="ticker" href="/stock/wood#NYSE">WOOD</a>). Kudos to both Guggenheim and iShares for coming up with appropriate tickers. Making distinctions between CUT and WOOD is critical for investors because over the past year, the performance of these ETFs is identical as both are up 30%.
First, we see that CUT trades for less than half the price of WOOD, allowing a trader to accumulate more than double the amount of shares for the same outlay of capital. So there's a point in CUT''s favor. CUT also features the better liquidity with an average daily trading volume for the past three months that is better than quadruple what WOOD features. 
On the other hand, WOOD does offer the better expense ratio at 0.48% compared to 0.65% for CUT. Obviously both funds are going to have some of the same holdings, but the allocations are different because WOOD is nearly half allocated to the U.S. while about a quarter of CUT's allocation is devoted to the U.S. Either way, you'll see Rayoneir (NYSE: <a class="ticker" href="/stock/ryn#NYSE">RYN</a>), Weyerhaeuser (NYSE: <a class="ticker" href="/stock/wy#NYSE">WY</a>) and MeadWestvaco (NYSE: <a class="ticker" href="/stock/mv#NYSE">MV</a>) among the top 10-holdings for both ETFs. International Paper (NYSE: <a class="ticker" href="/stock/ip#NYSE">IP</a>) is found among CUT's top-10, but not WOOD's. 
Making a decision between these two funds is hard, but it is clear timber exposure is worth a look now. Over the last 30 years or more, there has been little or no positive correlation between the returns generated from timberland and those from either fixed-income or equity assets, according to Hard Assets Investor.
A long-term hold might want to opt for WOOD because of the lower expense ratio, but an active trader should go for CUT because of the of the superior liquidity. Consider this showdown a draw with a slight edge to CUT.

ETF Showdown: Timber Time

<a rel="attachment wp-att-12755" href="http://etfdailynews.com/blog/2010/05/17/the-price-of-the-global-timber-etf-cut-may-get-cut-down/timber-logs/"><img class="alignleft size-full wp-image-12755" title="timber logs" src="http://etfdailynews.com/blog/wp-content/uploads/2010/05/timber-logs.jpg" alt="" width="110" height="110" /></a>When <a href="http://www.hardassetsinvestor.com/features-and-interviews/1/952.html?Itemid=64&amp;topic=4" target="_blank">we last covered timber</a> back in 2008, Darcy Keith focused on the launch of a new product covering the timber sector: the iShares S&amp;P Global Timber &amp; Forestry Index Fund (NYSE:WOOD)(...) Read the rest of <a href="http://etfdailynews.com/blog/2010/07/06/these-timber-etfs-are-anything-but-boring-wood-cut/">These Timber ETFs Are Anything But Boring (WOOD, CUT)</a> 
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These Timber ETFs Are Anything But Boring (WOOD, CUT)

No new buyers of homes plus the millions of existing homes on the market doesn’t bode well for timber prices in the near future. The U.S. Commerce Department recently reported its new home sales figure; 300,000 in May. This was a sharp decline from the analyst’s estimate of 400,000. The sharp plunge came after the expiration of a recession fighting tax credit for first-time home buyers on April 30. 
In addition, Canadian lumber producers will see a 10 percent tax added onto the price of timber as per the Softwood Lumber Agreement of 2006. This will add rising costs to lumber producers on top of the low price for wood products. Lumber futures have fallen from around $240 to around $174. 
The long term theory for timber investment is sound as expanding populations, less harvestable acreage and invasive destruction caused by Asian longhorn and pine beetles, will ultimately drive up prices. However, over the short term, the fragile housing market will still wreak havoc on timber prices. Investors may want to put the Claymore/Beacon Global Timber Index (NYSE: <a class="ticker" href="/stock/cut#NYSE">CUT</a>) and iShares S&amp;P Global Timber &amp; Forestry (NASDAQ: <a class="ticker" href="/stock/wood#NASDAQ">WOOD</a>) on their watch lists for better entry points down the road.

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