CUT vs KROP

CUTDInvesco MSCI Global Timber ETF

KROPCGlobal X AgTech & Food Innovation ETF

In short

CUT The first timber ETF to list in the US, running since 2007. It owns the forest and the mill: timberland owners plus the companies that turn logs into lumber, paper and packaging, across developed and emerging markets.

KROP How the world feeds itself, in about 30 stocks. KROP tracks a Solactive index of global companies advancing agricultural technology and food innovation, at a 0.50% fee that sits under the typical global thematic ETF.

Stated mandate

CUT The Fund is passively managed and seeks to generally match, before fees and expenses, the performance of the MSCI ACWI IMI Timber Select Capped Index. Its mandate covers securities connected with forest ownership and management and the manufacture of timber-based products.

KROP KROP seeks to track, before fees and expenses, the price and yield performance of the Solactive AgTech & Food Innovation Index. It invests at least 80% of assets in index securities or related depositary receipts and targets companies advancing agricultural technology and food innovation.

Why people hold it

• CUT Launched November 2007, ahead of every other US-listed timber fund, so it carries a full cycle of history including the housing bust.stockanalysis.com
• A genuine timber mandate: forest and timberland owners plus makers of finished wood products. Not a broad materials fund with a few lumber names bolted on.msci.com
• The index builds from MSCI's all-country investable market universe, so large, mid and small caps across developed and emerging markets qualify, not just US timber REITs.msci.com
• About 50 holdings, and the index is a capped version, which limits how big any single position can get.

• KROP At least 80% of assets sit in index names, so you get the agtech and food innovation basket rather than a broad fund wearing a theme label.
• The 0.50% expense ratio undercuts the median fee in its global thematic peer group.
• The mandate is global, so the basket can reach farm tech and food science names listed outside the US.
• Trading since July 2021, which gives it a multi-year operating history rather than a fresh launch.

Worth knowing

• CUT Costs 0.76% net of a waiver through August 31, 2027, and 0.99% without it. That sits above the category median; VEGI charges 0.39% and MOO 0.56%.
• Assets stay small and the shares trade thinly, so bid-ask spreads can cost more than the fee on a short holding period.
• Income lands once a year rather than quarterly, and most of the portfolio is priced in foreign currencies.

• KROP About 30 holdings means individual names carry real weight, so one company's stumble moves the fund more than it would in a broad index.
• Small asset base and light trading volume, which typically shows up as wider bid-ask spreads and more attention needed on order entry.
• Distributions land once or twice a year, not monthly, so cash flow from the fund is lumpy by design.

Full CUT profile⁠

Full KROP profile⁠