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Wood Paneling for Your Portfolio

Wood Paneling for Your Portfolio

After the relentless volatility of the financial markets in recent months, it's easy to see the appeal of an investment that doesn't move in concert with stock and bond markets. Buying timberland is one of the ways the big guys running pension plans and endowment funds have diversified their holdings away from financial market trends and earned fairly stable double-digit returns to boot. But timberland has been mostly off-limits to individual investors, because it requires millions of dollars to buy in.

Enter the Claymore/Clear Global Timber Index ETF (ETF). It's a new exchange-traded fund that invests in stocks of companies with the world's greatest exposure to timberland. It amps up the exposure by weighting the 27 stocks in the portfolio not by market capitalization but by actual acres companies own.