Lumber prices have soared 230% in the last year, pushing timber and homebuilding ETFs to record highs

• Lumber's 230% 12-month rally has pushed timber and homebuilding ETFs to record highs.
• The iShares Global Timber & Forestry ETF has climbed 89% in the last year, Bloomberg first reported.
• While the triple-leveraged Direxion Daily Homebuilders & Supplies Bull 3X Shares fund has surged roughly 100% year-to-date.

Lumber has staged an incredible rally in the last year and is taking exchange-traded funds that track the commodity along for the ride.

The iShares Global Timber & Forestry ETF (WOOD) has climbed 89% in the last 12 months and now sits at a record high. The fund tracks global timber and forestry stocks and gained nearly 7% in premarket trading Tuesday but pulled back at the open. Bloomberg first reported on the funds record performance.

Meanwhile, the triple-leveraged Direxion Daily Homebuilders & Supplies Bull 3X Shares fund (NAIL) has surged roughly 100% year-to-date and is the second-best performing U.S. equity fund this year, according to Bloomberg data. NAIL seeks daily investment results of 300% of the performance of the Dow Jones US Select Home Construction Index.

Spot lumber prices hit a record high of $1,326 per 1,000 board feet on Monday, bringing the commodity's 12-month gain to 231%. Soaring lumber prices are a sign of the pandemic-induced housing boom, fueled by record low mortgage rates and an exodus to the suburbs.

But the rising lumber costs have added more than $24,000 to the price of the average new single-family home, and timber companies are struggling to keep up with demand surge.