Over the long-term, Timberland provides enhanced portfolio diversification with returns that have been far less volatile than most assets, therefore producing high relative risk-adjusted returns.

returns for various asset classes (2002–2016)

Source: S&P Cap IQ, NCREIF, FRED Economic Data

From 2002 through 2016, the NCREIF Timberland Index, with a standard deviation of 6.5%, was substantially less volatile than the 17.5% and 20.9% experienced by the S&P and Russell 2000, respectively.

Timberland’s risk-adjusted return, as measured by the Sharpe Ratio, was 0.83, versus 0.27 for the S&P 500.