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Top 10 Commodity Producers ETFs

#8: iShares Global Timber & Forestry ETF (WOOD)  

WOOD follows the S&P Global Timber & Forestry Index which includes companies primarily engaged in ownership, management or upstream supply chain of forests and timberlands. The fund was launched in June 2008. The expense ratio is .48%. AUM equal $136 million and average daily trading volume is 55K shares. As of mid-December 2011 the annual dividend yield was 1.60%% and YTD return -18.80%.

WOOD Top Ten Holdings & Weightings

Data as of December, 2011

  1. Rayonier, Inc. (RYN): 8.10%
  2. Weyerhaeuser Co (WY): 8.06%
  3. Plum Creek Timber Co Inc (PCL): 7.89%
  4. West Fraser Timber (WFT): 5.01%
  5. Svenska Cellulosa (SCA B): 4.99%
  6. Potlatch Corp. (PCH): 4.81%
  7. MeadWestvaco Corporation (MWV): 4.64%
  8. International Paper Co. (IP): 4.49%
  9. Stora Enso Corporation (STERV): 4.46%
  10. UPM-Kymmene Corporation (UPMKF): 4.29%

 

#9: Guggenheim Timber ETF (CUT)  

CUT which follows the Beacon Global Timber Index consisting of companies who own or lease forested land and harvest timber for commercial use of wood-based products including paper, packaging, lumber and pulp. The fund was launched in November 2009. The expense ratio is .65%. AUM equal $133 million and average daily trading volume is 140K shares. As of early mid-December 2011 the annual dividend yield was 3.60% and YTD return -20%.

 

CUT Top Ten Holdings & Weightings

Data as of December, 2011

  1. Svenska Cellulosa AB (SCA B): 5.47%
  2. MeadWestvaco Corporation (MWV): 5.13%
  3. Holmen AB (HOLM B): 4.88%
  4. International Paper Co. (IP): 4.86%
  5. Plum Creek Timber Co Inc (PCL): 4.74%
  6. Stora Enso Oyj (STERV): 4.74%
  7. UPM-Kymmene Oyj (UPMKF): 4.72%
  8. Rayonier, Inc. (RYN): 4.67%
  9. Greif, Inc. A (GEF): 4.59%
  10. West Fraser Timber (WFT): 4.56%

#10: First Trust Global Copper ETF (CU)

CU follows the ISE Global Copper Index which is a linear weighted index following public companies in the copper mining industry based on analysis of revenue derived from the sale of copper. The fund was launched in March 2010. The expense ratio is .70%. AUM equal $58 million and average daily trading volume is 57K shares. As of early mid-December 2011 the annual dividend was yield was 1.00% and YTD return -26.00%.

 

CU Top Ten Holdings & Weightings

Data as of December, 2011

  1. Xstrata PLC (XTA): 6.46%
  2. Southern Copper Corporation (SCCO): 6.04%
  3. Ivanhoe Mines Ltd (IVN): 5.88%
  4. Freeport-McMoRan Copper & Gold B (FCX): 5.83%
  5. Rio Tinto PLC ADR (RIO): 5.83%
  6. Antofagasta PLC (ANTO): 5.52%
  7. KGHM Polska Miedz (KGH): 5.48%
  8. Katanga Mining Ltd (KAT): 4.85%
  9. First Quantum Minerals Ltd. (FM): 4.60%
  10. Inmet Mining Corporation (IEMMF): 4.46%

 

 

This sector overall responds to perceived and real economic conditions. Should investors sense an economic slowdown demand for base commodities will decline and so too will associate stocks. Conversely should investors believe an economic expansion is underway then products and stocks should rally. Uniquely, the level of the U.S. dollar is also another important determinant as to price action given commodities overall are priced in dollars. A strong dollar in the current environment should mean a decline in commodity prices and vice versa.

It's also important to remember that ETF sponsors have their own competitive business interests when issuing products which may not necessarily align with your investment needs. New ETFs from highly regarded and substantial new providers are also being issued. These may include Charles Schwab's ETFs and Scottrade's Focus Shares which both are issuing new ETFs with low expense ratios and commission free trading at their respective firms. These may also become popular as they become seasoned. 

For further information about portfolio structures using technical indicators like DeMark and other indicators, take a free 14-day trial at ETF Digest . Follow us on Twitter and Facebook as well and join our group conversations.

You may address any feedback to: feedback@etfdigest.com   

The ETF Digest has no current positions in the featured ETFs.

(Source for data is from ETF sponsors and various ETF data providers)

 

 

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

Dave Fry is founder and publisher of ETF Digest, Dave's Daily blog and the best-selling book author of Create Your Own ETF Hedge Fund, A DIY Strategy for Private Wealth Management, published by Wiley Finance in 2008. A detailed bio is here: Dave Fry.

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