Timber ETF WOOD navigates tariffs and shifting demand in forestry markets

From West Fraser’s resilience to Rayonier’s tariff advantage, WOOD ETF tracks the highs and lows of the timber industry. Could this be the right time to invest?

, and Administrator

2025 November 18 . 10:01 PM

1 min read

In this image I can see there are many wood on the ground and at the back, I can see there are many... — In this image I can see there are many wood on the ground and at the back, I can see there are many trees.

Timber ETF WOOD navigates tariffs and shifting demand in forestry markets

The iShares Global Timber & Forestry ETF (WOOD) provides investors with broad exposure to the global timber and forestry sector. With around $225.6 million in assets under management, the fund tracks companies across the supply chain, from lumber producers to packaging firms. Its low annual cost of 0.40% and tight bid-ask spread of 0.36% make it an accessible option for retail investors.

WOOD’s portfolio spans multiple industries, including a 20% allocation to containers and packaging. Companies like International Paper and Clearwater Paper feature in this segment. The fund also holds positions in major North American timber firms, with West Fraser (WFG) making up 3.78% of its assets.

The timber sector faces ongoing challenges, particularly from trade policies. Canadian lumber imports into the US currently carry a 10% tariff, set to rise to 30% in January. This shift benefits US-based timberland REITs such as Rayonier, PotlatchDeltic, and Weyerhaeuser, which stand to gain from reduced competition. Analysts remain cautious, however, with some warning that further downturns in the industry could lie ahead.

Among the firms under scrutiny, West Fraser, Weyerhaeuser, and Rayonier have drawn particular attention. West Fraser, for instance, maintains a robust liquidity position, which may help it weather market volatility. Meanwhile, around 25% of WOOD’s holdings overlap with companies previously analysed in sector reports.

WOOD offers a cost-effective way to invest in timber and forestry, with competitive fees and solid liquidity. The fund’s diversified approach covers everything from raw lumber to finished packaging products. As tariffs reshape trade flows, US-focused timber firms may see stronger demand, though broader industry risks remain.