Forestry investment through ETFs can provide double-digit returns

Forestry investment through ETFs can provide double-digit returns 

Weyerhaeuser and RAYONIER - holding timber ETFs 

The Motley Fool's article published last week, exchange-traded fund (ETF) as a lucrative investment opportunities in forestry. 

Article discusses the performance of the ETF tracking timber and paper industry company, and has many mutual funds to retail investors at a lower cost ratio. 

There are two ETF, tracking the majority wood equity markets - the Guggenheim Timber ETF (NYSEARCA: CUT) and iShares S & P Global Timber & Forestry Index Fund (NASDAQ: WOOD). As of March 13, these funds have reached double-digit growth last year - the Guggenheim Museum is 17.18% and 14.96%, iShares iShares. 

Guggenheim Timber ETF 

The ETF tracks the Beacon Global Timber Index, which includes about 30 companies. The main focus is for the target company owns or leases of woodland and timber harvesting for commercial purposes in any form of wood, paper or paper packaging. About a third of PRODUCTA assets in the United States accounts for about 10% of the securities, while Brazil and Japanese companies. 

In the fund company executives are: Weyerhaeuser Company (NYSE: WY), which makes assets grew 5.8%. The company saw its share price rise 45 percent from last year, but its strong performance in 2012, primarily due to the sale of the land, rather than operational performance. 

The iShares S & P Global Timber & Forestry Index Fund 

Another option is a forestry investment S & P Global Timber & Forestry Index Fund ETF, tracking S & P Global Timber & Forestry Index - a total of less than 30 company benchmark. The index focuses on businesses around the world engaged in forest and woodland ownership, management or upstream supply chain. About half of the assets to the company headquartered in the United States, while another 10% allocated to the Canadian company. Weyerhaeuser Company has once again become the company's senior RAYONIER (NYSE: RYN) about 10%, while the second place nine percent

RAYONIER is a Florida Real Estate Investment Trust, its shares gained 31 percent in the past year, has a forward P / E of about 22. Rayonierâ € ™'s strengths is its international diversification as the company's revenue will generate a lot of places, such as Europe, China and Japan. The company has strong fourth-quarter results, the management expects 2013 good. 

The Motley Fool's article concludes that, through careful selection of ETF investment in forestry could provide investors instant diversification in any industry or group of companies.