Real Assets Investments Blog - Versus Capital

Timberland: A Durable Real Asset with Long-Term Return Potential

Written by Versus Capital Investment Team | Jul 10, 2025 11:30:00 AM

Timberland is gaining attention as a long-term investment—and for good reason. We believe the biological growth of trees provides a natural hedge against inflation—and with rising global demand for wood products, timberland continues to stand out as a resilient, long-term real asset.

  1. Biological Growth & Inflation Hedge: Trees grow over time regardless of what is happening in the capital markets. The 30-year average annual return for U.S. timberland has been ~7% with low volatility compared to the S&P 500 Index.

  2. Rising Global Demand: Rising Global Demand: Global demand for wood products is expected to quadruple by 2050, driven by population growth, urbanization, and decarbonization efforts in construction and packaging.

  3. Attractive Risk-Return Profile: Timberland has historically generated a strong Sharpe ratio due to its low volatility, helping improve overall portfolio resilience, particularly in market downturns.

With its blend of steady performance, inflation protection, and growing global demand, we believe timberland remains a durable and strategic long-term investment.



Past performance is not a guarantee of future results. 

Note: Investing involves risk and principal loss is possible. Distributed by Foreside Funds Distributors LLC. For important information about the fund, please click here.


 

 

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