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 (2004–2018)

From 2004 through 2018, the NCREIF Timberland Index, with a standard deviation of 6.5%, was substantially less volatile than the 15.5% and 17.7% experienced by the S&P and Russell 2000, respectively.

Timberland’s risk-adjusted return, as measured by the Sharpe Ratio, was 0.80, versus 0.37 for the S&P 500.