SCHH ETF: What Is It? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
SCHH, the Schwab U.S. REIT ETF, tracks the Dow Jones Equity All REIT Capped Index and diversifies across equity REITs that own physical real estate, excluding mortgage REITs. Its strengths are a low expense ratio and quarterly dividends, and the fee gap versus VNQ and USRT is the key selection criterion.
SubscribeWhat Is the Schwab U.S. REIT ETF?
This is a US real estate sector ETF that tracks the Dow Jones Equity All REIT Capped Index. It holds equity REITs backed by physical real estate, excluding mortgage REITs, weighted by market capitalization, which provides diversified exposure across US commercial and residential property.
It suits investors who want to diversify their portfolios with a real estate asset whose correlation to stocks differs, while also pursuing dividend income.
It is a passively managed (index-tracking) ETF run by Schwab.
How Does the Schwab U.S. REIT ETF Invest?
| Item | Details |
|---|---|
| Tracked index | Dow Jones Equity All REIT Capped Index |
| Management style | Passive (index tracking) |
| Rebalancing frequency | Quarterly |
| Dividend frequency | Quarterly dividends |
| Issuer | Schwab |
| Total expense ratio | 0.07% |
The fund uses full replication, holding the constituents of the Dow Jones Equity All REIT Capped Index in proportion to their market capitalization. By excluding mortgage REITs and hybrid REITs, it concentrates on equity REITs that generate rental income from physical real estate, and a cap is applied so that no single holding's weight becomes excessive.
- Expense ratio below the category average
- Focus on physical real estate through the exclusion of mortgage REITs
Schwab U.S. REIT ETF Size and Costs (AUM and Expense Ratio)
Assets under management (AUM) stand at $11.0B, and the total expense ratio is 0.07% per year.
Its advantage is a lower expense ratio than comparable REIT ETFs such as VNQ and USRT, while trading liquidity is somewhat lower than that of the larger funds in the category.
Schwab U.S. REIT ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeThe REIT sector is sensitive to interest rates. During rate-hike periods it tends to underperform because of heavier borrowing costs and reduced appeal relative to bonds, and during rate-cut periods it can show a recovery. Short-term returns fluctuate with real estate market conditions and the interest rate environment.
Fund flows continue on the back of real estate sector diversification and dividend demand, and when expectations of a shift in rate policy build, money sometimes flows into REIT ETFs broadly. Conversely, when concerns about rising rates grow, outflows can also appear.
Schwab U.S. REIT ETF Pros and Cons
A low expense ratio and real estate sector diversification are its strengths, while interest rate sensitivity and sector concentration risk count as drawbacks.
💪 Key Strengths
⚠️ Points to Watch
Schwab U.S. REIT ETF Alternative ETFs and Related Products
The VNQ, USRT, and XLRE shown in the table are direct substitutes that track the same US real estate sector. VNQ stands out for its broad asset base and liquidity, while USRT and XLRE stand out for their low expense ratios. If you want additional leveraged upside exposure to real estate, you can consider URE; to bet on declines, SRS; and to broaden exposure to global real estate, REET.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 VNQ | Vanguard Real Estate Index Fund ETF | $93.94 | +0.1% | $37.6B | 0.13% | 3.63% | +5.6% |
 XLRE | State Street Real Estate Select Sector SPDR ETF | $43.17 | +0.3% | $8.1B | 0.08% | 3.34% | +5.6% |
 USRT | iShares Core U.S. REIT ETF | $63.77 | -0.1% | $4.3B | 0.08% | 2.75% | +11.0% |
 IYR | iShares U.S. Real Estate ETF | $99.66 | +0.2% | $4.0B | 0.37% | 2.39% | +5.6% |
 ICF | iShares Select U.S. REIT ETF | $66.62 | +0.1% | $2.0B | 0.32% | 2.62% | +10.2% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| WELL | Welltower Inc | 0.30% | $234.60 | +0.6% | $172.1B | - | 1.35% |
| PLD | Prologis Inc | 0.27% | $127.98 | -0.0% | $124.1B | 28.2 | 3.34% |
| EQIX | Equinix Inc | 0.10% | $1013.70 | -2.2% | $100.3B | 60.9 | 2.04% |
| SPG | Simon Property Group Inc | 0.09% | $217.75 | +0.9% | $70.5B | 41.3 | 4.13% |
Schwab U.S. REIT ETF Investor Checkpoints
Here are the points to review before investing in SCHH. It is highly useful as a real estate sector diversifier, but it is best to confirm its interest rate sensitivity, single-sector concentration, and, for investors holding Korean won, its currency exposure before buying.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense ratio | Check the cumulative cost impact over a long holding period | Low level |
| 📈 Rate environment | How the direction of interest rates affects REIT performance | Needs checking |
| 📊 Sector concentration | Review exposure to the single real estate sector | Sector concentrated |
| 💱 Exchange rate | Impact on returns converted into Korean won | No currency hedge |
Rising interest rates and a slowdown in the real estate market are the main drivers of short-term volatility. As a single-sector ETF, it is more exposed to sector-specific risk than to the broader market, and losses can grow during economic slowdowns.
It is a suitable choice for investors who want real estate sector diversification and dividends at low cost. If broad liquidity matters most, VNQ is a candidate, and if cost matters more, SCHH and USRT are worth considering.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of June 21, 2026.
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