How do I interpret the ETF category, and what does 'Real Estate' actually mean?

Both SCHH and VNQ are categorised as Real Estate, meaning they hold shares of REITs rather than physical buildings. REITs are companies that own or finance income-producing properties. An investor buys these ETFs to gain access to this asset class. While the category defines the underlying assets, it does not dictate risk or return, requiring further analysis of specific holdings.

What does the expense ratio tell me about these two funds?

The expense ratio is the annual fee you pay the fund manager. SCHH has a 0.07% expense ratio, while VNQ charges 0.13%. These costs are deducted from the fund's assets. Lower fees help investors keep more of their returns, but they must be weighed against other factors. Always check the current figures from the source before investing, as ratios can shift marginally over time.

What does the 'index tracked' field indicate for SCHH and VNQ?

Ideally, the 'index tracked' field specifies the benchmark each fund mimics. However, in this comparison, the index tracked is not available for either fund. Investors should search for the specific benchmark used by Schwab and Vanguard. This data helps assess how closely the ETF follows its target market and clarifies the methodology behind the portfolio's construction and performance evaluation.

Which fund is cheaper and by how much?

SCHH is cheaper. It charges 0.07%, while VNQ costs 0.13%. This difference means SCHH is 0.06 percentage points lower in fees than VNQ. For an investor comparing returns, a lower fee can preserve value over the long term. However, the 0.06 percentage point gap must be balanced against other metrics like assets and holdings to determine the overall value proposition.

How do the fund sizes of SCHH and VNQ compare?

Fund size affects liquidity and operational stability. VNQ is substantially larger, managing $36.9 billion in net assets. SCHH is smaller, managing $10.8 billion. Larger funds often have tighter bid-ask spreads, reducing trading costs. However, $10.8 billion is still significant and generally sufficient for most investors. Size alone does not guarantee performance, but it influences how easily the fund trades on exchanges.

Do SCHH and VNQ hold similar stocks?

Yes, there is significant overlap. Both funds include WELL and PLD as top holdings, followed by DLR, SPG, AMT, EQIX, O, PSA, VMRK, and VTR. Despite holding identical top ten companies, the individual weights differ. These variations reflect different weighting methodologies. Investors should look at the top ten as a snapshot, not the full portfolio.

What is the difference in dividend yield between these funds?

Yields indicate the annual income relative to the share price. VNQ currently offers a 3.71% dividend yield. SCHH offers a 2.88% yield. While VNQ appears to provide higher income, yields change as prices fluctuate. An ETF is a pass-through vehicle, so income is generated by the properties owned by the REITs. Historical yields do not guarantee future distribution levels.

Do these funds offer exposure to global real estate?

No, these are U.S.-focused products. SCHH is named 'Schwab U.S. REIT ETF' and VNQ is 'Vanguard Real Estate ETF'. Both focus exclusively on the domestic market. Their portfolios comprise U.S. real estate companies and do not hold international property firms. Investors seeking global diversification would need to look for funds explicitly designed to include markets outside the United States alongside these domestic holdings.

How has the fund history influenced these ETFs?

History helps determine track record. VNQ has been trading longer. It launched on Sep 23, 2004. SCHH has a shorter history. It launched on Jan 13, 2011. VNQ's longer tenure has allowed it to experience different market cycles, which may inform its operational stability and strategy. Investors typically look at long-term behaviour, though past performance does not guarantee future outcomes for either fund.

Can I easily switch between SCHH and VNQ?

Yes, both are exchange-traded funds (ETFs). You can buy or sell them through a standard brokerage account on open market hours. Because they trade on major stock exchanges, they offer liquidity. However, frequent switching can incur trading costs or tax consequences. It is practical to consider long-term strategy rather than active trading. Check your specific broker for any applicable fees.

What educational considerations should be made before investing?

Before investing, recognise that both SCHH and VNQ represent equity ownership in the property sector. Prices fluctuate daily based on interest rates and economic health. Diversification does not guarantee profit. Investors should assess their risk tolerance. Note that this comparison is educational content only and not financial advice. Always review the fund's official prospectus for complete information.

SCHH vs VNQ

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

Compare SCHH (Schwab U.S. REIT ETF) and VNQ (Vanguard Real Estate ETF). This page reviews fees, holdings, dividends and how each fund tracks its market. Note that SCHH's expense ratio is 0.07% and VNQ's is 0.13%. Both hold top positions in WELL and PLD. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

SCHH

Metric

VNQ

0.07%

Expense Ratio

0.13%

2.88%

Dividend Yield

3.71%

$10.85B

Net Assets

$36.87B

120

Holdings

151

Jan 13, 2011

Inception Date

Sep 23, 2004

–

Index Tracked

–

Real Estate

Fund Category

Real Estate

SCHH costs about $6.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	SCHH	VNQ
WELLWelltower Inc.	11.14%	8.72%
PLDPrologis, Inc.	8.71%	6.89%
DLRDigital Realty Trust, Inc.	4.62%	3.63%
SPGSimon Property Group, Inc.	4.53%	3.64%
AMTAmerican Tower Corporation	4.34%	4.33%
EQIXEquinix, Inc.	4.29%	5.45%
ORealty Income Corporation	3.85%	3.00%
PSAPublic Storage	3.64%	2.72%
VMRKVivmark Residential	3.33%	2.46%
VTRVentas, Inc.	3.07%	2.34%

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Investment Analysis

SCHH

Pros

Schwab U.S. REIT ETF carries a 0.07% expense ratio, lower than Vanguard Real Estate ETF's 0.13%, reducing cost drag over time.
Schwab U.S. REIT ETF holds $10.8 billion in net assets, providing sufficient scale for institutional and retail investors alike.
Schwab U.S. REIT ETF offers direct exposure to leading U.S. real estate investment trusts, supporting portfolio diversification.

Considerations

Schwab U.S. REIT ETF reports a 2.88% dividend yield, below Vanguard Real Estate ETF's 3.71%, limiting income appeal.
Schwab U.S. REIT ETF holds top 10 positions at 50.2% of portfolio, creating significant concentration in a few large REITs.
Schwab U.S. REIT ETF lacks available sector weight data, making detailed sub-industry analysis more challenging for investors.

VNQ

Pros

Vanguard Real Estate ETF boasts $36.9 billion in net assets, indicating strong liquidity and established market presence.
Vanguard Real Estate ETF provides a 3.71% dividend yield, exceeding Schwab U.S. REIT ETF's 2.88% for higher income potential.
Vanguard Real Estate ETF tracks a broad U.S. REIT index, offering diversified exposure across residential, commercial, and industrial properties.

Considerations

Vanguard Real Estate ETF has a 0.13% expense ratio, which is higher than Schwab U.S. REIT ETF's 0.07%, increasing cost burden.
Vanguard Real Estate ETF's top 10 holdings comprise 38.7% of the portfolio, leading to substantial concentration in major REITs.
Vanguard Real Estate ETF lacks available sector weights, hindering precise sub-sector assessment for investors seeking detailed property type insights.

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About SCHH and VNQ

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.

VNQ (VNQ)

The Vanguard Real Estate ETF (VNQ) offers investors a convenient way to gain exposure to the US real estate market through Real Estate Investment Trusts (REITs). Launched in 2004, this fund tracks a broad index of publicly traded REITs, providing access to various property types, including residential, commercial, industrial, and healthcare sectors. With an expense ratio of 0.13%, it stands as a low-cost option for those looking to diversify their portfolios into real estate without directly purchasing physical properties. Holding 151 securities, VNQ delivers a dividend yield of approximately 3.71%, appealing to income-focused investors. As with any investment, values can rise and fall, and past performance does not guarantee future results. Investors should consider their individual financial circumstances before adding sector-specific ETFs to their portfolios.

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SCHH vs VNQ

Fund Snapshot