What distinguishes SCHD from SCHH?

SCHD is a Large Value dividend equity fund tracking broad market dividend-paying companies with $112.8 billion in assets, offering a 3.11% yield. SCHH focuses on U.S. real estate investment trusts with $10.8 billion in assets, providing a 2.88% yield. While SCHD targets corporate profits through equity ownership, SCHH invests directly in property-based businesses generating rental income streams.

How do dividend yields differ between these funds?

SCHD currently provides a 3.11% annualised dividend yield compared to SCHH's 2.88%, representing a 0.23 percentage point difference. These yields reflect distributions relative to current prices: SCHD receives dividends from healthcare and energy companies, while SCHH earns income from real estate tenants. Yield differences do not guarantee future distributions and may change as underlying holdings adjust payouts.

Can these funds be compared using index tracking?

Both funds have unavailable index tracking details, preventing direct methodological comparison. SCHD likely tracks a dividend-focused equity index given its healthcare and energy concentration, while SCHH appears structured around U.S. REIT performance based on its property sector exposure. Investors should note these funds differ fundamentally: SCHD owns profitable corporations, while SCHH holds income-generating real estate entities, creating distinct risk profiles.

How do the top holdings compare between these funds?

SCHD's largest positions include Merck (4.89%) and AbbVie (4.48%), focusing on healthcare and energy like Chevron (4.25%). SCHH concentrates in real estate entities such as Welltower (11.14%) and Prologis (8.71%). No top-10 holdings overlap between the funds, indicating completely distinct portfolios despite similar yields. This divergence reflects SCHD's equity diversification versus SCHH's specialised property sector exposure.

What fee difference matters for long-term investing?

SCHD charges a 0.06% expense ratio compared to SCHH's 0.07%, a 0.01 percentage point difference. On a $10,000 investment, SCHH costs $10 annually versus $6 for SCHD. While this small gap seems minimal, over decades it compounds: a $500 difference on a $100,000 portfolio after 10 years. However, actual impact depends on market returns exceeding fee differentials, which remains uncertain.

How do these funds respond to economic cycles?

SCHD's healthcare and energy holdings may provide stability during inflationary periods, while SCHH's real estate exposure faces sensitivity to interest rate changes. With both lacking sector weight data, precise diversification assessment is impossible. Historically, dividend equities like SCHD maintain consistent payouts during moderate downturns, whereas REITs like SCHH experience property valuation fluctuations tied to economic growth.

What should beginners know about these ETF structures?

SCHD launched October 2011 with $112.8 billion in assets, offering established dividend-focused equity exposure. SCHH began January 2011 with $10.8 billion, providing targeted real estate market participation. Both maintain similar inception timelines but differ in size and specialisation. Investors should recognise these are passive instruments tracking distinct market segments, not actively managed funds with flexible strategy adjustments.

Why are the top holdings not overlapping?

SCHD's portfolio reflects its objective of dividend equity exposure through corporate shares like Coca-Cola and Verizon. SCHH's structure exclusively invests in real estate investment trusts like Digital Realty and Simon Property Group. These non-overlapping holdings demonstrate fundamentally different asset strategies: one seeks corporate profits across sectors, while the other focuses solely on property-based income generation.

What are the limitations in this comparison?

Sector weight data is unavailable for both funds, preventing comprehensive diversification analysis. SCHD has concentration risks in healthcare and energy sectors, while SCHH's Welltower position represents 11.14% of assets. Without verified index methodologies, investors cannot fully assess tracking accuracy or fee efficiency relative to alternatives. These gaps mean comparisons remain partial, focusing on observable yield and expense differences rather than complete portfolio construction.

Can these funds complement each other in a portfolio?

SCHD provides broad equity market exposure with 3.11% yields from corporate dividends, while SCHH offers 2.88% yields through real estate income. Their completely different top holdings suggest potential diversification benefits when combined. However, without sector weight data, assessing true overlap is impossible. Both funds share similar inception dates and low expense ratios, making structural comparison straightforward despite distinct investment objectives.

SCHD vs SCHH

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

Compare SCHD (US Dividend Equity ETF Schwab) and SCHH (Schwab U.S. REIT ETF) for fees, holdings and dividends. Explore how each fund tracks its market, with expense ratios of 0.06% and 0.07% respectively. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

SCHD

Metric

SCHH

0.06%

Expense Ratio

0.07%

3.11%

Dividend Yield

2.88%

$112.77B

Net Assets

$10.85B

102

Holdings

120

Oct 20, 2011

Inception Date

Jan 13, 2011

–

Index Tracked

–

Large Value

Fund Category

Real Estate

SCHD costs about $1.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

SCHD

Pros

It carries a low 0.06% expense ratio and has accumulated $112.8 billion in net assets.
It was established on October 20, 2011, providing a long operational history for investors.
It offers a current dividend yield of 3.11%, which is attractive for income-seeking investors.

Considerations

Its specific benchmark index methodology is currently not available for independent verification.
No sector weight data is provided to assess the portfolio's sector diversification.
Its top holdings are concentrated in sectors like healthcare and energy, creating sector-specific risks.

SCHH

Pros

The fund has a low 0.07% expense ratio and holds $10.8 billion in net assets.
It has been operating since January 13, 2011, offering a decade of performance history.
With a 2.88% dividend yield, it provides a regular income stream to shareholders.

Considerations

The precise index it tracks is not available, preventing direct comparison with alternatives.
Absence of sector weight data makes it difficult to analyse internal REIT sub-sector exposure.
The top holding is WELL at 11.14%, creating a significant concentration risk in one entity.

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About SCHD and SCHH

SCHD (SCHD)

SCHD (Schwab US Dividend Equity ETF) is an exchange‑traded fund that aims to provide exposure to high-quality U.S. companies that have a history of paying dividends. Managed by Charles Schwab, the ETF screens for firms with stable earnings, reasonable payout ratios and consistent dividend records, concentrating on large‑cap names across a range of sectors. Investors often use SCHD for income and as a core holding to capture dividend yield with the diversification and liquidity of an ETF. It is designed to be a low‑cost, transparent vehicle, though dividends and share prices can fall and past performance is not a guarantee of future results. Suitable for investors seeking income and long‑term total return, it may not fit those focused solely on capital growth or who require guarantees. As with any investment, consider costs, tax treatment and how it fits your wider portfolio before investing.

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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SCHD vs SCHH

Fund Snapshot