What are the main differences in fees and track records between Schwab U.S. REIT ETF (SCHH) and Real Estate Select Sector SPDR ETF (XLRE)?

SCHH has a lower expense ratio at 0.07%, compared to XLRE's 0.08%. SCHH also launched in 2011, giving it a longer track record than XLRE, which launched in 2015.

How do the dividend yields and top holdings of SCHH and XLRE compare?

XLRE has a higher dividend yield at 3.39%, versus SCHH's 2.88%. While both share nine top holdings like Welltower (WELL) and Prologis (PLD), XLRE includes a higher concentration in healthcare REITs like Welltower and excludes some SCHH holdings such as VICI Properties.

What transparency and index tracking information is available for SCHH and XLRE?

Neither SCHH nor XLRE provides details on their tracked index or sector weights. This lack of transparency limits insights into their exact portfolio construction and how they align with the broader real estate market.

What does the difference in expense ratios between SCHH and XLRE mean for long-term returns?

A 0.01% difference in expense ratio may seem negligible, but over decades, compounding can significantly erode total returns, especially in higher tax-bracket accounts.

How should the concentration risk in SCHH's top holdings be evaluated against XLRE?

SCHH's top position, Prologis, is at 11.14%, which increases exposure to specific REIT performance. XLRE's higher Welltower weight suggests similar concentration in healthcare REITs, so both funds face idiosyncratic risks depending on their top holdings.

Why does SCHH have a higher net asset total compared to XLRE, and how does this affect liquidity?

SCHH's larger net asset base of $10.8 billion compared to XLRE's $7.8 billion generally indicates higher trading volume and tighter bid-ask spreads, reducing market costs for SCHH.

How do the shared top holdings and differences in concentration influence the market performance of SCHH and XLRE?

The funds share 9 of their top 10 holdings, including WELL and PLD, so their performance is closely correlated.

What factors should investors consider when choosing between SCHH and XLRE for income generation?

XLRE's higher yield of 3.39% offers more current income, but SCHH's lower costs and longer track record might be better suited for long-term growth-oriented investors.

What role does inception date play in evaluating SCHH versus XLRE for long-term investments?

SCHH's 2011 launch provides more historical performance data across market cycles, offering investors greater confidence in its long-term behaviour.

SCHH vs XLRE

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

Compare Schwab U.S. REIT ETF (SCHH) and Real Estate Select Sector SPDR ETF (XLRE). We examine fees, holdings, dividends, and how each fund tracks its market, using data from Yahoo Finance on 22 September 2026. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

SCHH

Metric

XLRE

0.07%

Expense Ratio

0.08%

2.88%

Dividend Yield

3.39%

$10.85B

Net Assets

$7.77B

120

Holdings

Jan 13, 2011

Inception Date

Oct 7, 2015

–

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	XLRE
WELLWelltower Inc.	11.14%	11.33%
PLDPrologis, Inc.	8.71%	8.71%
DLRDigital Realty Trust, Inc.	4.62%	4.48%
SPGSimon Property Group, Inc.	4.53%	4.55%
AMTAmerican Tower Corporation	4.34%	5.49%
EQIXEquinix, Inc.	4.29%	7.04%
PSAPublic Storage	3.64%	4.58%
VMRKVivmark Residential	3.33%	4.29%
VTRVentas, Inc.	3.07%	4.42%

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Investment Analysis

SCHH

Pros

Schwab U.S. REIT ETF charges a low expense ratio of 0.07 percent, reducing long-term cost drag versus similar funds.
It has $10.8 billion in assets, supporting liquidity and trading activity without inflating market spread costs.
Inception in 2011 provides a longer track record than many sector exchange-traded funds available today.

Considerations

Top holdings concentrate 11.14 percent in Prologis and other large names, increasing idiosyncratic REIT-specific risk exposure.
Dividend yield is 2.88 percent, which may underperform some higher-yielding real estate strategies for income-focused investors.
Index methodology and sector weights are not available, limiting transparency regarding exact portfolio construction and tilt.

XLRE

Pros

Expense ratio of 0.08 percent remains competitive, keeping total cost similar to other low-cost real estate sector products.
Net assets of $7.8 billion indicate sufficient scale for regular trading while maintaining operational efficiency.
Top holdings include 11.33 percent Welltower, reflecting broad exposure to healthcare REITs within the real estate sector.

Considerations

Dividend yield of 3.39 percent may still trail higher-yielding REIT funds or active strategies available in the market.
Inception in 2015 means a shorter track record, offering less historical data for long-term performance assessment.
Index tracked and sector weights are not available, reducing transparency regarding how the fund selects and weights holdings.

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About SCHH and XLRE

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.

XLRE (XLRE)

The Real Estate Select Sector SPDR ETF (XLRE) offers investors a focused way to gain exposure to the real estate sector within the broader S&P 500. Designed to track the performance of real estate companies, this fund holds a concentrated portfolio of 33 key holdings, primarily consisting of major Real Estate Investment Trusts (REITs) and real estate management firms. With a low expense ratio of 0.08%, it is a cost-effective option for those looking to diversify into property assets without purchasing physical real estate. The fund provides regular income, boasting a dividend yield of 3.39%, which can be appealing for income-focused investors. Established in October 2015, XLRE manages net assets of USD 7.77 billion. Like any investment, its value can fluctuate based on interest rates, economic conditions, and the performance of the underlying holdings, so it’s important to consider these factors alongside your own financial situation.

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SCHH vs XLRE

Fund Snapshot