A Turning Tide for Timber: The iShares Global Timber & Forestry ETF at a Crossroads

iShares Global Timber & Forestry ETF US4642881746

The global timber and forestry industry appears poised for a significant shift. Market experts are forecasting a potential sharp rise in wood prices commencing in the second quarter of 2026, a notable projection that follows a recent dip to 13-month lows. This anticipated rebound is largely attributed to persistent U.S. trade restrictions and tariff policies. For investors, the iShares Global Timber & Forestry ETF (ticker: WOOD) represents a vehicle to gain exposure to this sector during a period characterized by conflicting market signals.

Tracking the S&P Global Timber & Forestry Index, this exchange-traded fund invests directly in the underlying securities. It manages assets of approximately $229.35 million and carries an expense ratio of 0.40%. The fund’s portfolio consists of roughly 45 holdings, but it exhibits a high degree of concentration. More than 55% of the fund's total assets are allocated to its ten largest positions. Consequently, the ETF’s performance is closely linked to the fortunes of a select group of major industry players.

Contrasting Current Realities with Future Forecasts

Recent price softness in the timber market can be traced to weakening demand and ample inventory levels. This phase of price moderation is naturally reflected in the ETF’s current performance metrics. However, the analyst prediction for a substantial price increase starting around mid-2026 is rooted in longer-term structural factors. Ongoing U.S. trade policies are expected to constrain supply over the coming years. This creates a compelling dynamic for market participants: does the present situation offer an entry point into a cyclical sector that may be on the cusp of a recovery?

The coming months will be critical in determining whether the anticipated supply constraints will indeed propel prices upward and provide a tailwind for the WOOD ETF. The stage is set for the industry's next chapter.