What is the largest publicly traded lumber company?

Weyerhaeuser is the largest timber REIT. It's the largest private owner of timberlands in North America (over 10 million acres owned in the U.S. and 13 million acres licensed in Canada). It also has a leading wood products business with 33 manufacturing facilities and 22 distribution centers across the continent.

Are lumber ETFs a good hedge against inflation?

Lumber ETFs can be a good hedge against inflation. Demand and timber pricing tend to benefit from inflation. Since 1960, timber has had the second-highest correlation with inflation among common asset classes.

Who should consider investing in lumber ETFs?

Those who are looking for diversified exposure to the lumber industry should consider a lumber ETF. Investing in these funds has several benefits, including helping hedge your portfolio against inflation, profiting from rising lumber prices, and capitalizing on growing housing demand.

Can I earn dividends from lumber ETFs?

Yes, you can earn dividends from lumber ETFs. The iShares Global Timber & Forestry ETF had a 2.7% dividend yield in mid-2026, while the Invesco MSCI Global Timber ETF's dividend yield was 2.6%.

Are lumber ETFs impacted by seasonal trends?

Yes, seasonal trends tend to affect lumber ETFs. Demand typically rises in the spring and summer as home builders increase their activity and falls during the winter as demand slows.

What is the difference between lumber ETFs and forestry or timber ETFs?

There are only two ETFs focused on the lumber, forestry, and timber sectors. Although the pair are different in some regards, both focus on similar companies.

2 Best Lumber ETFs for 2026 and How to Invest

A closer look at the top lumber ETFs.

By Matthew DiLallo – Updated Jul 9, 2026 at 8:53 AM EST | Fact-checked by Frank Bass

Key Points

Lumber ETFs provide broad industry exposure, enabling investors to quickly diversify their portfolios.
Top holdings in these ETFs include major global timber and paper product companies.
Investing in lumber ETFs can serve as a hedge against inflation and provide upside from housing growth.

Lumber exchange-traded funds (ETFs) are investment funds that hold shares of companies involved in timber harvesting, wood products, and forest management. They offer investors a simple way to gain broad exposure to the timberland and lumber industries without buying individual stocks.

Timberland has long been viewed as a potential hedge against inflation, while lumber demand tends to rise with economic growth and housing activity. Together, those dynamics make lumber ETFs an appealing option for investors looking to diversify their portfolios with real-asset exposure.

Below, we’ll break down how lumber ETFs work and what to consider before investing in them.

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A person working with lumber. — Image source: Getty Images.

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Two top lumber ETFs for 2026

Only two ETFs focus on the lumber sector:

Ticker Information Table
Name and ticker	Current price
Invesco Exchange-Traded Fund Trust II - Invesco Msci Global Timber ETF (NYSEMKT:CUT)	$30.37
iShares Trust - iShares Global Timber & Forestry ETF (NASDAQ:WOOD)	$71.33

Data as of Aug 17, 2026. Showing 2 of 2 total entries.

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1. iShares Global Timber & Forestry ETF

NASDAQ: WOOD

iShares Trust - iShares Global Timber & Forestry ETF

Today's Change

(-1.42%) $-1.03

Current Price

$71.33

Key Data Points

AUM

$268M

Dividend Yield

2.36%

Expense Ratio

0.39%

Top Holdings

7.64%

SUZB3.SA

7.11%

MNDI.L

7.00%

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The iShares Global Timber & Forestry ETF (WOOD -1.42%) provides investors with broad exposure to companies that produce forest products, agricultural products, and paper and packaging products. The fund aims to track the S&P Global Timber & Forestry index. As of mid-2026, it managed almost $250 million of net assets.

The iShares ETF's top holdings include several of the largest timberland REITs and global timber companies. The ETF held 25 stocks, led by the following five:

Weyerhaeuser (WY -1.95%): 7.7% weighting in the fund.
Suzano: 7.6%
Smurfit Westrock (SW -2.01%): 6.1%
Mondi (MONDY -1.16%): 5.9%
UPM-Kymmene (OCT:UPMMY): 5.7%

These top five holdings comprise nearly 33% of the fund's total assets. Several of its holdings are real estate investment trusts (REITs), including Weyerhaeuser, that generate revenue by owning timberland. These REITs harvest and sell lumber to mills they own or to third-party-operated mills.

Its top holdings also include diversified wood products companies, container and packaging makers, and producers of lumber, plywood, pulp, newsprint, wood chips, and other wood products. The fund offers global diversification (only 26.9% of its holdings are U.S. companies).

Investors should consider the iShares ETF's expense ratio. At 0.4%, it charges a reasonable management fee. Meanwhile, the fund pays a dividend with a trailing-12-month yield of 2.7% as of mid-2026.

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2. Invesco MSCI Global Timber ETF

NYSEMKT: CUT

Invesco Exchange-Traded Fund Trust II - Invesco Msci Global Timber ETF

Today's Change

(-0.43%) $-0.13

Current Price

$30.37

Key Data Points

AUM

$32M

Dividend Yield

2.36%

Expense Ratio

0.99%

Top Holdings

6.27%

6.25%

PKG

5.69%

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The Invesco MSCI Global Timber ETF (CUT -0.43%) focuses on timber REITs and companies selling forest products, paper products, and paper packaging. The fund aims to track the MSCI ACWI IMI Timber Select Capped index. As of mid-2026, the Invesco ETF had approximately $31 million in assets under management (AUM).

The Invesco ETF holds more stocks than the iShares Global Timber & Forestry ETF, with 49 companies. Its five largest holdings were:

International Paper (IP -1.04%): 6.3% of the fund's assets.
Smurfit Westrock: 6.1%
Amcor (AMCR -1.51%): 5.9%
Packaging Corporation of America (PKG -0.54%): 5.6%
Avery Dennison (AVY -1.21%): 5.2%

The five holdings account for almost 30% of the Invesco ETF's portfolio. One of the biggest differences between the Invesco ETF and other ETFs is that it provides investors with broader exposure to the wood products market. Several of the largest holdings focus on maximizing the value of wood fibers by converting them into paper, packaging, and lumber products.

The Invesco ETF also offers exposure to the timber market, led by timber REIT Weyerhaeuser, which is the fund's sixth-largest holding. The company is one of several holdings in the ETF that manage timberlands and/or operate lumber mills.

The Invesco ETF's broader approach to the lumber market has one notable benefit: it's less volatile, as it has less direct exposure to lumber price fluctuations. However, that also gives it slightly less upside potential in a rising lumber price market.

The ETF's expense ratio of 0.99% is higher than that of the iShares Global Timber & Forestry ETF. The fund also offers the opportunity to earn income (a 30-day yield of 2.3% as of mid-2026).

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How to buy lumber ETFs

Here's a step-by-step guide on investing in lumber ETFs:

Open your brokerage account: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
Search for the lumber ETF: Enter the ticker [CUT or WOOD] into the search bar to bring up the stock's trading page.
Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Submit your order: Confirm the details and submit your buy order.
Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

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Benefits and risks of investing in lumber ETFs

Investing in lumber ETFs has pros and cons.

Benefits

Inflation hedge: Timber demand and pricing tend to benefit from inflation.
Growth: Housing is a key driver of lumber demand. As a result, lumber is a way to invest in the growth of housing demand.
Income: Lumber ETFs typically own timberland REITs and other lumber companies that pay dividends, making it a source of passive income.
Diversification: Lumber ETFs enable you to invest broadly across the lumber sector.

Risks

The potential for underperformance: A lumber ETF has the potential to underperform a top lumber stock.
Fees: Lumber ETFs charge fees to provide investors with broad exposure to the lumber market, which will eat into your returns over the long term.
Small size: The two lumber ETFs are very small (especially Invesco MSCI Global Timber ETF), putting them at risk of closing and returning capital to investors.

Methodology: How these ETFs were chosen

Only two ETFs focus on the lumber market. While others hold some lumber stocks, they don't offer the pure-play exposure that these two ETFs do.

Should you invest in lumber ETFs?

The lumber market has faced headwinds in recent years, including high mortgage rates and tariffs on Canadian imports, which have pressured U.S. demand. While early signs of stabilization emerged in 2025, uncertainty remained in 2026 around when housing activity and renovation demand would fully recover.

Longer term, lumber demand should track housing growth, population trends, and construction activity, making the sector cyclical but potentially rewarding for patient investors. Investing in a lumber ETF can enable you to capitalize on this growth with less risk compared to investing in an individual lumber stock.

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Investing in lumber ETFs: FAQ

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About the Author

Matt DiLallo has been a contributing Motley Fool stock analyst specializing in the energy, industrials, and real estate sectors since 2012. He also covers dividend-paying stocks, pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.

TMFmd19

@MatthewDiLallo

Matt DiLallo has positions in Weyerhaeuser. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

2 Best Lumber ETFs for 2026 and How to Invest

A closer look at the top lumber ETFs.

Key Points

Two top lumber ETFs for 2026

1. iShares Global Timber & Forestry ETF

NASDAQ: WOOD

Key Data Points

2. Invesco MSCI Global Timber ETF

NYSEMKT: CUT

Key Data Points

How to buy lumber ETFs

Benefits and risks of investing in lumber ETFs

Benefits

Risks

Methodology: How these ETFs were chosen

Should you invest in lumber ETFs?

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Investing in lumber ETFs: FAQ

What is the largest publicly traded lumber company?

What is the largest publicly traded lumber company?

Are lumber ETFs a good hedge against inflation?

Are lumber ETFs a good hedge against inflation?

Who should consider investing in lumber ETFs?

Who should consider investing in lumber ETFs?

Can I earn dividends from lumber ETFs?

Can I earn dividends from lumber ETFs?

Are lumber ETFs impacted by seasonal trends?

Are lumber ETFs impacted by seasonal trends?

What is the difference between lumber ETFs and forestry or timber ETFs?

What is the difference between lumber ETFs and forestry or timber ETFs?

About the Author

Stocks Mentioned

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Premium Investing Services

How to buy lumber ETFs

Benefits and risks of investing in lumber ETFs

Benefits

Risks

Methodology: How these ETFs were chosen

Should you invest in lumber ETFs?

Investing in Farmland: A Real Estate Investor's Guide

5 Best Steel Stocks for 2026 and How to Invest

7 Best ETFs to Buy in August 2026

Best Water ETFs for 2026 and How to Invest

Investing in lumber ETFs: FAQ

What is the largest publicly traded lumber company?

What is the largest publicly traded lumber company?

Are lumber ETFs a good hedge against inflation?

Are lumber ETFs a good hedge against inflation?

Who should consider investing in lumber ETFs?

Who should consider investing in lumber ETFs?

Can I earn dividends from lumber ETFs?

Can I earn dividends from lumber ETFs?

Are lumber ETFs impacted by seasonal trends?

Are lumber ETFs impacted by seasonal trends?

What is the difference between lumber ETFs and forestry or timber ETFs?

What is the difference between lumber ETFs and forestry or timber ETFs?

NYSEMKT: CUT

Key Data Points

NASDAQ: WOOD

Key Data Points