Is This the Worst-Performing Global ETF?

Core Insights - The iShares Global Timber & Forestry ETF (WOOD) has underperformed, down nearly 8% year to date, making it one of the laggards among global ETFs [4][5] - The ETF, which tracks the S&P Global Timber & Forestry Index, has a market capitalization of $226.3 million and has been affected by a downturn in the residential real estate market [5][6] - Despite recent interest rate cuts by the Federal Reserve, lower mortgage rates have not significantly boosted home sales, further impacting lumber demand [7][9] Performance Analysis - The Vanguard Total World Stock ETF (VT) has increased by 21.39% this year, highlighting the poor performance of the timber ETF in comparison [2] - The timber ETF's performance is compounded by rising home delistings and canceled purchase agreements, indicating a lack of agreement between buyers and sellers [9] Market Dynamics - High interest rates have led homeowners to avoid borrowing for home repairs, which is a primary source of lumber demand [6][7] - The ETF's individual holdings, such as Weyerhaeuser, may present value opportunities, as it is trading below the value of its timberland [11] Future Outlook - Potential changes in monetary policy, including the retirement of Fed Chairman Jerome Powell, could lead to easier monetary conditions and possibly stimulate the housing market [10] - For the ETF to rebound in 2026, it will require both favorable market conditions and investor confidence in its holdings [11]