The latest from Claymore‘s exchange traded fund (ETF) family is the Claymore/Clear Global Timber (CUT), which tracks the Clear Global Timber Index. This includes 27 companies that produce wood and paper products. Companies are based in 11 countries and the index weights the U.S. at 26.4%, Canada at 12.3%, Japan at 11.5% and both Finland and Brazil at 9% each, reports Trang Ho for Investor’s Business Daily.
Each stock accounts for 1-5% of assets. The top three holdings are Votorantim Celulose e Papel (VCP) of Brazil, Grupo Empresarial of Spain, and MeadWestvaco (MWV) of Virginia. Timber is a hard-asset class that has slipped under investors’ radar until now. Its low correlation to other asset classes represents an opportunity to give a necessary allocation option.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.