What exactly do SCHH and USRT invest in?

Both SCHH (Schwab U.S. REIT ETF) and USRT (iShares Core US REIT ETF) are exchange-traded funds designed to provide exposure to the U.S. real estate market. Rather than investing in physical properties, they hold a diversified basket of Real Estate Investment Trusts (REITs). These are companies that own, operate, or finance income-generating real estate across various sectors, such as residential, commercial, and industrial properties.

How do their expense ratios compare?

The expense ratio is the annual fee an ETF charges investors to manage the fund. SCHH has a lower expense ratio of 0.07%, while USRT charges 0.08%. Although a 0.01% difference appears minimal, fees reduce an investment's gross returns each year. Over long holding periods, even small discrepancies in fees can have a noticeable compounding effect on net earnings. Investors often consider lower costs beneficial, assuming all other factors remain equal.

What do their net asset sizes mean?

Net assets represent the total value of all holdings in the fund minus liabilities. SCHH holds $10.8 billion in net assets, which is significantly larger than USRT's $4.3 billion. Larger asset bases can contribute to better liquidity and tighter bid-ask spreads during trading. However, size alone does not determine an ETF's quality or performance. Both funds are substantial enough to function effectively within their real estate category.

How similar are the top holdings between SCHH and USRT?

The two ETFs share a significant degree of overlap in their top 10 holdings. Nine of the same companies appear in both lists: WELL, PLD, DLR, SPG, EQIX, O, PSA, VMRK, and VTR. However, USRT holds these top ten companies with lower individual weights, creating a more equally distributed portfolio within its leading positions. This indicates that while the funds are heavily correlated, their concentration profiles differ.

What are the top holdings of each fund?

For SCHH, the top five holdings are Welltower (WELL) at 11.14%, Prologis (PLD) at 8.71%, Digital Realty (DLR) at 4.62%, Simon Property Group (SPG) at 4.53%, and American Tower (AMT) at 4.34%. For USRT, the top five are Welltower (8.89%), Prologis (7.37%), Equinix (EQIX) at 6.22%, Simon Property Group (4.49%), and Digital Realty (4.42%). Both funds feature highly diversified portfolios led by real estate leaders.

What are the main differences between the portfolios?

One clear distinction is the composition of the top 10 lists. SCHH's 10th-largest position is American Tower (AMT) at 4.34%. USRT instead includes Iron Mountain (IRM) at 2.97% and Equinix (EQIX) at a larger weight of 6.22%. This indicates a slightly higher tilt toward the data center and information storage sub-sectors for USRT compared to SCHH's larger communication infrastructure exposure. Sector weights for both remain unavailable.

How do dividend yields compare?

Dividend yield is the annual payout expected relative to a fund's share price. Currently, SCHH has a dividend yield of 2.88%, while USRT provides a yield of 2.77%. Both are similar, but SCHH's slightly higher yield suggests it might pay out a bit more income per dollar invested. These distributions are primarily funded by the rents and income collected by the underlying real estate companies within their respective portfolios.

Which fund has a longer history?

USRT has a longer track record, with an inception date of May 1, 2007. SCHH was launched later, on January 13, 2011. A longer history allows investors to observe how a fund performed across various market cycles, including previous real estate downturns and interest rate environments. While this data can be useful for context, both funds have operated long enough to demonstrate their respective investment strategies in action.

What is the main risk in these portfolios?

Both ETFs are highly concentrated in a single sector: real estate. This means their performance is closely tied to the broader property market's health, interest rate changes, and economic cycles. Additionally, SCHH shows a higher concentration in its top holding, Welltower (11.14%), compared to USRT's top holding (8.89%). A drop in Welltower's share price could impact SCHH's overall return slightly more than it would USRT due to this weight difference.

What is not available about these funds?

According to the latest data, sector weights for both SCHH and USRT are not available. This means it is difficult to precisely determine the percentage allocation each fund dedicates to specific real estate sub-sectors, such as retail, healthcare, residential, or industrial properties. Furthermore, neither fund has a public index tracking designation provided in the data, making it less straightforward to compare their exact methodologies.

Which investing goal do these funds fit?

Both SCHH and USRT are typically suited for investors seeking diversified exposure to the U.S. real estate sector and a source of modest income through distributions. They can act as portfolio diversifiers due to their distinct behaviour compared to broader stock indices. Investors who prioritise lower fees and greater liquidity might look towards the larger fund, while those wanting a slightly broader top ten distribution or a longer inception history may find the smaller fund aligns with their goals.

How does this comparison fit into investing?

This ETF vs ETF comparison provides educational insights into how similar funds differ in costs, scale, holdings, and yield. It assists investors in interpreting financial data and understanding their potential impact over time. However, this information is not personalised financial advice. Investing involves risk, including the potential loss of principal. Prospective investors should conduct their own research, assess their risk tolerance, and consider consulting a financial professional before making investment decisions.

SCHH vs USRT

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

Schwab U.S. REIT ETF vs iShares Core US REIT ETF. Compare fees (0.07% vs 0.08%), holdings, dividends and index focus. Track U.S. real estate markets. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

SCHH

Metric

USRT

0.07%

Expense Ratio

0.08%

2.88%

Dividend Yield

2.77%

$10.85B

Net Assets

$4.35B

120

Holdings

127

Jan 13, 2011

Inception Date

May 1, 2007

–

Index Tracked

–

Real Estate

Fund Category

Real Estate

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

Shared Top Holdings

Holding	SCHH	USRT
WELLWelltower Inc.	11.14%	8.89%
PLDPrologis, Inc.	8.71%	7.37%
DLRDigital Realty Trust, Inc.	4.62%	4.42%
SPGSimon Property Group, Inc.	4.53%	4.49%
EQIXEquinix, Inc.	4.29%	6.22%
ORealty Income Corporation	3.85%	4.05%
PSAPublic Storage	3.64%	4.12%
VMRKVivmark Residential	3.33%	3.85%
VTRVentas, Inc.	3.07%	3.88%

Discover More Comparisons

SCHH vs XLRE

Compare SCHH and XLRE on fees, holdings, dividends, and tracking. Schwab U.S. REIT ETF versus Real Estate Select Sector SPDR ETF. Factual data included.

SCHH vs VOO

Compare SCHH and VOO on fees and holdings. SCHH costs 0.07% and VOO 0.03%. Analyse dividend yields, net assets, and tracking differences for informed research.

SCHH vs VNQ

Compare SCHH and VNQ ETFs. Review 0.07% vs 0.13% fees, yields, holdings, and tracking details for these real estate funds to decide which to research.

Investment Analysis

SCHH

Pros

Its $10.8 billion in net assets and 0.07% expense ratio provide scale and low costs for investors.
The top holdings include diversified exposure to key real estate sub-sectors through leading companies like Welltower and Prologis.
Its 2.88% dividend yield offers income, while the 0.07% expense ratio ensures a cost-effective investment.

Considerations

Its top holding, Welltower, represents 11.14% of the fund, indicating potential concentration risk in that company.
The fund's sector weights are not available, which limits transparency regarding specific real estate sector allocations.
Inception in 2011 means it lacks the long-term track record of funds established earlier.

USRT

Pros

Its 2.77% dividend yield provides income, while its 0.08% expense ratio offers competitive fees for investors.
The fund holds a diversified portfolio with nine of the top ten companies overlapping with the larger Schwab fund.
Its 2007 inception date provides a longer historical track record than the Schwab U.S. REIT ETF.

Considerations

Its $4.3 billion in net assets is smaller than its Schwab counterpart, which may slightly impact liquidity.
The top holding Welltower represents 8.89% of assets, indicating a different, though still focused, concentration profile.
The fund's sector weights are not available, obscuring its precise breakdown across real estate sub-sectors.

Related Market Insights

Capital Returns: The Shareholder Yield Play

Explore Capital Returns, a Neme focused on companies rewarding shareholders via buybacks & dividends. Invest in robust firms like Schwab with Nemo's thematic baskets.

Aimee Silverwood | Financial Analyst

25 July 2025

Read Insight

Related Market Insights

Capital Returns: The Shareholder Yield Play

Explore Capital Returns, a Neme focused on companies rewarding shareholders via buybacks & dividends. Invest in robust firms like Schwab with Nemo's thematic baskets.

Aimee Silverwood | Financial Analyst

25 July 2025

Read Insight

About SCHH and USRT

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.

USRT (USRT)

The iShares Core US REIT ETF provides investors with diversified exposure to the United States real estate market. This fund tracks a broad index of US equity real estate investment trusts, offering access to a wide range of property sectors, including residential, commercial, industrial, and retail real estate. With a competitive expense ratio of 0.08%, it is designed to be a cost-effective way for investors to include real estate in their portfolios. The ETF holds 127 companies, providing a snapshot of the broader US REIT market. It has a dividend yield of approximately 2.77%, reflecting income generated from underlying holdings. Launched in May 2007, the fund has net assets of USD 4.35 billion. As with any investment, capital values can fluctuate, and past performance does not guarantee future results.

Which Baskets Do They Appear In?

Capital Returns: The Shareholder Yield Play

Following Charles Schwab's massive $20 billion stock buyback and dividend increase, this theme focuses on other financially robust companies that are similarly rewarding their investors. The strategy is to invest in firms with strong cash flows and a commitment to returning capital to shareholders.

Published: 25 July 2025

Explore Basket

Which Baskets Do They Appear In?

Capital Returns: The Shareholder Yield Play

Published: 25 July 2025

Explore Basket

Buy SCHH or USRT in Nemo

🆓

Zero Commission

Trade stocks, ETFs, and more with zero commission. Keep more of your returns.

🔒

Trusted & Regulated

Part of Exinity Group 2015, serving over a million customers globally.

💰

6% Interest on Cash

Earn 6% AER on uninvested cash with daily interest payments.

SCHH vs USRT

Fund Snapshot