What do the expense ratios of REET and SCHH indicate about their cost structures?

The expense ratio represents the annual fee paid to manage the fund, expressed as a percentage of assets. REET charges 0.14%, while SCHH charges 0.07%, making SCHH's fee half of REET's. This difference implies that SCHH is designed as a lower-cost option, potentially preserving more of the investor's capital over time compared to the higher-fee alternative. However, lower fees do not automatically translate to superior returns, as performance also depends on market movements and how well the underlying index is tracked. For beginners, understanding these costs helps in evaluating how fees might impact long-term investment outcomes.

How do the tracking methods and objectives differ between REET and SCHH?

REET aims to provide exposure to global real estate markets, encompassing both United States and international property trusts. In contrast, SCHH is dedicated specifically to the US real estate sector. This fundamental difference in tracking objectives means that while both are real estate ETFs, they serve different investment needs. REET offers broader geographic diversification, whereas SCHH allows for concentrated exposure to the American property market. Although specific index methodologies are not available for either, the distinction in their geographic focus is crucial for investors seeking either global reach or domestic emphasis within the real estate asset class.

What role do dividend yields play in comparing REET and SCHH?

The dividend yield indicates the income generated by the fund's holdings relative to its share price. REET has a yield of 3.52%, whereas SCHH offers 2.88%. This suggests that REET currently provides a higher income distribution to its investors. However, yields can fluctuate based on the performance of the underlying real estate trusts and changes in the ETF's net asset value. A higher yield might appeal to income-focused investors, but it is essential to consider that it could also reflect underlying market volatility or specific geographic exposures in international markets versus a purely domestic strategy for SCHH.

How significant is the difference in fund size between REET and SCHH?

Schwab U.S. REIT ETF (SCHH) holds $10.8 billion in net assets, which is considerably larger than the $4.7 billion managed by REET. A larger asset base often contributes to improved liquidity, making it easier for investors to buy and sell shares at desired prices without significantly impacting the market. While REET's size is still substantial and provides adequate stability, SCHH's larger fund may benefit more from economies of scale. For most investors, both funds are sufficiently sized, but SCHH’s greater net assets might offer marginally better tradability during periods of high market activity or volatility.

How does the historical track record of REET compare with SCHH?

SCHH was established in January 2011, providing investors with a longer historical track record of over thirteen years. REET, launched in July 2014, offers a shorter track record of approximately twelve years. A longer history allows investors to analyse performance across various market cycles, such as the 2008 financial crisis aftermath or rising interest rate environments. While both funds have existed long enough to provide reliable performance data, SCHH's additional years of operation offer slightly more historical data for evaluation. However, past performance of these funds is not indicative of future results, and investors should focus on their respective strategic objectives.

What is the extent of overlap in top holdings between REET and SCHH?

The top ten holdings of these funds demonstrate a high degree of overlap, indicating that the core of their portfolios shares many major real estate investment trusts. Specifically, Welltower (WELL), Prologis (PLD), Equinix (EQIX), Digital Realty (DLR), Simon Property Group (SPG), Realty Income (O), Public Storage (PSA), VICI Properties (VMRK), and Ventas (VTR) are found in both. Despite this concentration, the allocation weights differ, with SCHH having higher exposure to AMT, which is not in REET's top ten. This overlap suggests that global and US-specific real estate markets are heavily influenced by similar dominant players, even if the broader market context varies.

What transparency limitations exist regarding sector weights for these funds?

For both REET and SCHH, detailed sector weights are currently listed as not available. This lack of transparency means investors cannot see the exact allocation breakdown across different real estate segments such as industrial, residential, or retail. Understanding sector weights is typically crucial for determining concentration risk; however, the provided data highlights the presence of specific holdings without showing how diversified the broader portfolio is. Investors must rely on the top ten holdings and general category definitions (Global vs Real Estate) to form a qualitative understanding, as precise percentage allocations by sub-sector are not disclosed in the available dataset.

How does the difference in expense ratios affect long-term wealth accumulation?

The difference in expense ratios between REET (0.14%) and SCHH (0.07%) is 0.07 percentage points. On an investment of $10,000, this cost difference equates to roughly $7 annually. While this amount seems negligible in a single year, fees compound over long investment horizons, reducing the potential for wealth accumulation. For example, if both funds generate identical gross returns, REET's higher fee would result in a slightly lower net value over 20 or 30 years compared to SCHH. Consequently, fee-conscious investors often view such differences as a factor in total cost of ownership, although the geographic diversification provided by REET may offset the cost for those seeking global exposure.

Is the higher dividend yield of REET a better measure of performance?

Not necessarily. While REET's 3.52% yield is higher than SCHH's 2.88%, this reflects the income distribution, not the total return. Investors must consider that REET has global exposure, which introduces potential currency risks and different economic drivers compared to SCHH's strictly US focus. Additionally, REET carries a higher expense ratio and has fewer total net assets than SCHH, which could imply slightly lower liquidity. The higher yield might be influenced by international real estate markets or specific holdings within its global mandate. Therefore, relying solely on yield to measure performance is insufficient, as total return (price appreciation plus reinvested dividends) is a more comprehensive metric.

What limitations should beginners be aware of when comparing these funds?

Beginners should be aware that key metrics such as index methodology and sector weights are not available for either REET or SCHH in this data set. Without this information, it is impossible to fully analyse how the funds achieve their objectives or their exact diversification beyond the top ten stocks. Furthermore, the data relies on specific figures from September 2026; asset sizes, yields, and expense ratios can change. Investors must recognise that these ETFs serve different purposes—one being a low-cost, US-centric option (SCHH) and the other offering higher-cost global diversification (REET). Neither is inherently superior without considering individual portfolio needs and investment goals.

How does geographic diversification impact REET's risk profile compared to SCHH?

REET's mandate to invest in global real estate markets provides geographic diversification, potentially reducing risk through exposure to non-US economies. This approach spreads investment across various jurisdictions, which can be advantageous if the US market faces domestic headwinds. Conversely, SCHH is exclusively focused on the US, meaning its risk profile is entirely dependent on the American economy and property sector. While REET's diversification offers a hedge against regional market downturns, it may also involve currency risk and exposure to less regulated international markets. Investors weighing this must decide whether they prefer the stability and transparency of a home-market focus (SCHH) or the potential growth and spread offered by a global allocation (REET).

What insights can be gained from comparing net assets and inception dates?

SCHH possesses $10.8 billion in net assets compared to REET's $4.7 billion, indicating SCHH has attracted nearly 2.3 times more capital. This higher capitalisation likely reflects greater market adoption or preference for low-cost US-only exposure. Regarding inception dates, SCHH has been available since 2011, while REET launched in 2014. The earlier inception of SCHH means it has a longer operational history, which can provide investors with more confidence in its stability and fund management practices. Although both are large, established funds, SCHH's greater net assets and longer track record suggest a deeper entrenchment in the market, although REET has secured a significant position in the global niche.

REET vs SCHH

Two funds, one decision: we compare cost, performance and what each ETF actually holds in October 2026.

Compare REET and SCHH by examining their expense ratios, net assets, dividend yields, and core holdings. While SCHH tracks Schwab U.S. REIT ETF with a 0.07% fee, REET covers iShares Global REIT ETF at 0.14%, offering distinct exposures to the global real estate market. This page analyses fees, holdings, dividends and how each fund tracks its market. Educational content, not financial advice.

Compare REET and SCHH by examining their expense ratios, net assets, dividend yields, and core holdings. While SCHH tracks Schwab U.S. REIT ETF with a 0.07% fee, REET covers iShares Global REIT ETF at...

Fund Snapshot

Key Fund Metrics

REET

Metric

SCHH

0.14%

Expense Ratio

0.07%

3.52%

Dividend Yield

2.88%

$4.73B

Net Assets

$10.85B

363

Holdings

120

Jul 8, 2014

Inception Date

Jan 13, 2011

–

Index Tracked

–

Global Real Estate

Fund Category

Real Estate

SCHH costs about $7.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	REET	SCHH
WELLWelltower Inc.	9.39%	11.14%
PLDPrologis, Inc.	7.26%	8.71%
EQIXEquinix, Inc.	5.72%	4.29%
DLRDigital Realty Trust, Inc.	3.84%	4.62%
SPGSimon Property Group, Inc.	3.73%	4.53%
ORealty Income Corporation	3.00%	3.85%
PSAPublic Storage	2.83%	3.64%
VMRKVivmark Residential	2.65%	3.33%
VTRVentas, Inc.	2.52%	3.07%

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Investment Analysis

REET

Pros

net assets total $4.7 billion provide moderate fund size and stability
a $4.7 billion asset base supports liquidity and reduces closure risk
global real estate exposure can reduce geographic concentration in US equities

Considerations

a 0.14% expense ratio exceeds the lower-cost US REIT ETF by double
a 3.52% yield may increase tax drag relative to the lower distribution alternative
index methodology and sector weights are not available for detailed transparency

SCHH

Pros

a 0.07% expense ratio is lower than the global peer's annual management fee
$10.8 billion net assets support liquidity, tradability and economies of scale
inception in 2011 provides a longer track record for performance evaluation

Considerations

a 2.88% dividend yield is lower than the global peer's higher distribution rate
US-only focus may miss potential diversification benefits offered by international markets
index methodology and sector weights are not available for complete transparency

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About REET and SCHH

REET (REET)

iShares Global REIT ETF (REET) is an exchange-traded fund that provides investors with broad exposure to listed real estate investment trusts (REITs) and real-estate-related companies around the world. It offers a simple way to access property-sector income and capital appreciation through a single, liquid security, typically distributing dividends sourced from rent and property earnings. Investors should know the ETF’s performance reflects property market cycles, interest-rate sensitivity and regional economic trends; returns can be volatile and are not guaranteed. The fund carries market, currency and sector concentration risk — for example, rising interest rates or weaker leasing demand can pressure REIT valuations. REET may suit investors seeking diversified real-estate exposure without owning direct property, but it is not a substitute for professional advice. Consider your time horizon, risk tolerance and tax position before investing, and review the fund’s prospectus and ongoing charges for costs and specific index methodology.

SCHH (SCHH)

Schwab U.S. REIT ETF (SCHH) is a passively managed exchange-traded fund that seeks to track the Dow Jones U.S. Select REIT Index, offering diversified exposure to US real estate investment trusts (REITs). It typically holds publicly traded REITs spanning sectors such as residential, industrial, retail, office and specialised property types, and distributes rental-derived income as dividends. As an ETF, SCHH provides intraday liquidity and a convenient way to gain broad real-estate exposure without picking individual stocks, but it remains concentrated in the property sector and is sensitive to interest-rate moves and economic cycles. Investors should weigh potential dividend income against capital volatility, tax treatment of REIT distributions, fees and tracking error. This is general educational information only and not personal advice; values can rise and fall and past performance is not a guide to the future. Consider your objectives and consult a financial adviser for suitability.

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