At a glance
CUT charges 0.76% a year, above the 0.24% average of the 4 funds most like it (the most expensive of 5). It has $32.7M in assets, the 5th largest of that group; it paid 2.55% of its price in distributions over the past 12 months, annual. Over the past year it returned −1.4% with distributions reinvested (S&P 500: +11.5%), 4th of those 5 funds; over three years it returned +2.2% a year. At its worst it fell 36.6% in the 2020 crash (S&P 500: 33.7%) and 28.2% in the 2022 bear market (S&P 500: 24.5%). Its ten largest positions make up 52.0% of the fund, out of 51 in all.
The short version
Invesco MSCI Global Timber ETF (CUT) tracks the MSCI ACWI IMI Timber Select Capped Index, a basket of companies worldwide that own forests or make wood, paper and packaging products. It offers a targeted stake in timber rather than the broader materials sector. At 0.76% a year, its expense ratio is the highest among similar funds and well above the 0.41% charged by the larger iShares Global Timber & Forestry ETF (WOOD).
Price history
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CUT -1.4% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| CUT official prospectus, to Dec 31, 2025 | — | -6.40% | — | -0.50% | +4.49% | — |
| CUT price data to Oct 27, 2026 | -2.9% | -1.4% | +2.2% | -2.4% | +4.0% | +2.8% |
- Over the year to Oct 27, 2026, CUT returned -1.4%, 4th of 5 among similar funds.
- Its 5-year annualized return was -2.4% and its 10-year +4.0%.
- In the 2020 COVID crash it fell 36.6% and regained its old high 5.3 months after the low.
- Its worst full calendar year was 2008 (-48.8%); its best was 2009 (+50.2%).
- The deepest fall in its price history was 70.1% (Dec 10, 2007 to Mar 9, 2009), recovered by Mar 14, 2013.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -2.9% | — |
| 2025 | -5.9% | -6.40% |
| 2024 | +1.8% | +1.94% |
| 2023 | +8.6% | +9.20% |
| 2022 | -16.4% | -16.66% |
| 2021 | +12.3% | +12.30% |
| 2020 | +18.1% | +18.12% |
| 2019 | +23.3% | +22.81% |
| 2018 | -21.7% | -21.11% |
| 2017 | +30.4% | +29.76% |
| 2016 | +7.3% | +7.11% |
| 2015 | -1.3% | — |
| 2014 | -3.8% | — |
| 2013 | +28.5% | — |
| 2012 | +25.1% | — |
| 2011 | -17.9% | — |
| 2010 | +18.2% | — |
| 2009 | +50.2% | — |
| 2008 | -48.8% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 36% over that stretch · deepest drop along the way 36.6%, back to its old high 5.3 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 24.3% over that stretch · deepest drop along the way 28.2%, not recovered by the end of the data |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2025 | $0.7200 | -25.8% |
| 2024 | $0.9700 | +24.4% |
| 2023 | $0.7800 | 0.0% |
| 2022 | $0.7800 | +34.5% |
| 2021 | $0.5800 | +5.5% |
| 2020 | $0.5500 | -28.6% |
| 2019 | $0.7700 | -6.1% |
| 2018 | $0.8200 | +64.0% |
| 2017 | $0.5000 | -3.8% |
| 2016 | $0.5200 | +44.4% |
| 2015 | $0.3600 | -47.8% |
| 2014 | $0.6900 | +91.7% |
| 2013 | $0.3600 | +44.0% |
| 2012 | $0.2500 | -35.9% |
| 2011 | $0.3900 | -33.9% |
| 2010 | $0.5900 | +1080.0% |
| 2009 | $0.0500 | -87.8% |
| 2008 | $0.4100 |
What's inside
As of Jul 31, 2026, the fund held 51 securities; the ten largest made up 51.99% of assets. It also reported 23.65% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.
| Holding | Weight | |
|---|---|---|
| International Paper Co. | 6.38% | |
| Smurfit Westrock PLC | 5.93% | |
| Amcor PLC | 5.62% | |
| Packaging Corp. of America | 5.56% | |
| Avery Dennison Corp. | 5.06% | |
| Weyerhaeuser Co. | 5.02% | |
| Svenska Cellulosa AB S.C.A. | 4.94% | |
| Stora Enso OYJ | 4.65% | |
| Rayonier Inc. | 4.55% | |
| Sonoco Products Co. | 4.28% | |
| UPM-Kymmene OYJ | 4.20% | |
| Mondi PLC | 4.08% | |
| Suzano S.A. | 3.93% | |
| SIG Group AG | 3.87% | |
| Oji Holdings Corp. | 3.00% |
By country
United States 34.23%Finland 11.73%Sweden 8.07%Brazil 6.44%Ireland 5.93%By asset type
Stocks 99.92%What changed recently
- Over the three months to Jul 31, 2026, investors added a net $0.00 (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -0.04%, +0.90%, +6.55%.
How it works
CUT is an index fund that seeks to match the results, before fees, of the MSCI ACWI IMI Timber Select Capped Index. MSCI starts with a broad index of stocks from developed and emerging markets. It keeps only companies in four industry groups under GICS, a standard classification system: forest products, paper products, paper and plastic packaging, and timber REITs. REITs (real estate investment trusts) own real estate, in this case forest land, and trade like stocks.
Each stock's weight depends on its free float-adjusted market value. Bigger companies count for more, and only shares available to outside investors are counted. As of December 31, 2025, the index held 54 stocks with market values from $342.2 million to $20.8 billion. They were based in 19 countries, including the US, Brazil, Finland, Sweden and Japan. The fund uses full replication, meaning it generally owns every index stock at its index weight. It keeps at least 90% of assets in index stocks or depositary receipts, which are certificates that represent foreign shares.
Because it follows the index, the fund generally keeps a lagging stock unless the index removes it. It is non-diversified, so a few companies can matter a lot. As of July 31, 2026, the top 10 holdings made up 52% of assets, led by International Paper (6.4%), Smurfit Westrock (5.9%) and Amcor (5.6%).
What it really costs
- CUT charges 0.76% a year, versus an average of 0.24% for the similar funds below (5th of 5, cheapest first).
- Of that, 0.5% is the management fee; the rest covers other fund expenses.
- The fee includes a 0.23% waiver from the adviser, which may end.
- Using the prospectus's standard example, $10,000 invested would cost about $78 in the first year and $1,192 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| CUT | $78 | $292 | $525 | $1,192 |
In a retirement portfolio
It is a concentrated, non-diversified bet on one global industry that lost 48.8% in 2008, so it fits better as a small side position than as a portfolio's foundation.
CUT adds exposure to global forest, paper and packaging companies, but the ride has been rough. Its worst calendar year was 2008, a 48.8% loss. Its deepest drop, about 70% from December 2007 to March 2009, took until March 2013 to recover. It fell 36.6% in the 2020 COVID crash but recovered in about five months. In the 2022 bear market it dropped 28.2% and had not regained its January 2022 peak as of October 27, 2026. Cashing out during those slumps would have locked in losses.
Income is modest and lumpy: the 12-month yield was 2.55% as of October 27, 2026, with payouts once a year. The 0.76% expense ratio is well above the 0.24% average of similar funds. In the SEC's standard $10,000 example, costs total $1,192 over 10 years. Past results don't predict the future, and a plan should weigh the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors seeking a targeted, global stake in forest owners, timber REITs, and paper and packaging makers rather than the whole materials sector.
- Those who can hold it as a small side position and sit through drops like its roughly 70% fall from December 2007 to March 2009.
- Investors wanting a worldwide timber fund: about 34% of assets were in US companies as of July 31, 2026, followed by Finland and Sweden.
Look elsewhere if
- Cost-conscious investors: the 0.76% expense ratio compares with 0.41% for iShares' WOOD and 0.08% for the broader Materials Select Sector SPDR Fund (XLB).
- Retirees who need steady income: the 12-month yield was 2.55% as of October 27, 2026, and the fund pays out only once a year.
- Those who may need cash in downturns: it lost 48.8% in 2008 and was below its January 2022 peak as of October 27, 2026.
Close alternatives
Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| CUT this fund | — | 0.76% | $32.7M | -1.4% | +2.2% |
| WOOD iShares Global Timber & Forestry ETF | 59% | 0.41% | $246.8M | -7.0% | -0.2% |
| RSPM Invesco S&P 500 Equal Weight Materials ETF | 22% | 0.4% | $177.6M | +21.6% | +12.8% |
| XLB Materials Select Sector SPDR Fund | 13% | 0.08% | $8.17B | +18.5% | -10.3% |
| VAW Vanguard Materials ETF | 7% | 0.09% | $4.55B | +13.9% | +13.3% |
Questions investors ask
What does the CUT ETF invest in?
CUT invests in companies tied to timber: forest owners, makers of wood and paper products, paper and plastic packaging companies, and timber REITs (real estate investment trusts that own forest land). It tracks the MSCI ACWI IMI Timber Select Capped Index. As of July 31, 2026, its largest holdings were International Paper (6.4%), Smurfit Westrock (5.9%), Amcor (5.6%), Packaging Corp. of America (5.6%) and Avery Dennison (5.1%). US companies made up about 34% of assets, followed by Finland at 11.7% and Sweden at 8.1%.
What's the difference between CUT and WOOD?
The biggest difference is cost. The iShares Global Timber & Forestry ETF (WOOD), CUT's closest match by holdings, charges 0.41% a year, versus 0.76% for CUT. WOOD is larger, with $246.8 million in net assets as of June 30, 2026, against CUT's $32.7 million as of July 31, 2026. Returns have favored CUT: as of October 27, 2026, it lost 1.4% over one year and gained 2.2% a year over three years, versus losses of 7% and 0.2% a year for WOOD.
Does CUT pay dividends?
Yes, but only once a year. Over the 12 months to October 27, 2026, CUT paid about $0.72 per share, a yield of 2.55%. The money comes from dividends paid by the timber, paper and packaging companies it owns, so the amount can rise or fall from one year to the next. For retirees who want regular cash, an annual payment is lumpier than the monthly or quarterly schedules many stock funds use.
How has CUT performed over the long term?
Results have been modest and uneven. According to the prospectus, as of December 31, 2025, CUT returned an average of 4.49% a year over 10 years. It lost an average of 0.5% a year over five years and 6.4% over one year. Between 2016 and 2025, calendar-year results ranged from a 29.76% gain in 2017 to a 21.11% loss in 2018. Based on market prices as of October 27, 2026, the 10-year return was 4.0% a year.
Is the CUT ETF risky?
Yes, it can be. CUT is non-diversified, meaning it can put more money into a few companies, and it is concentrated in one global industry. It also owns emerging-market and smaller companies, which the prospectus lists as added risks. Its deepest drop was about 70%, from December 2007 to March 2009, and it did not recover until March 2013. It lost 48.8% in 2008, and its worst quarter cited in the prospectus was a 27.43% fall in the first quarter of 2020.