SCHH — Schwab US REIT ETF
SCHH is the cheapest US REIT ETF available, tracking the Dow Jones US Select REIT Index at just 0.07% — nearly half the cost of VNQ (0.12%). It holds diversified US real estate investment trusts across all sectors, providing income-focused real estate exposure for Schwab platform investors and cost-conscious REIT buyers everywhere. SCHH's index excludes real estate operating companies, holding only pure REITs.
Top Holdings
Strategy
- →Use as the lowest-cost US REIT core holding for cost-conscious investors
- →Include in Schwab-platform portfolios as the REIT component of a diversified allocation
- →Hold in tax-advantaged accounts due to REIT ordinary income tax treatment
- →Rebalance annually to maintain target real estate allocation
Best For
- ✓Cost-obsessed investors who want the cheapest possible US REIT ETF
- ✓Schwab platform users building a complete low-cost portfolio
- ✓Those who want pure REIT exposure without real estate operating company dilution
- ✓Long-term REIT investors for whom the 0.05% savings over VNQ compounds meaningfully
Key Risks
- ⚠Real estate sector concentration — single sector exposure amplifies property market downturns
- ⚠Interest rate sensitivity — REIT prices fall when rates rise
- ⚠REIT dividend tax inefficiency in taxable accounts
- ⚠Smaller AUM than VNQ creates slightly lower liquidity
Similar ETFs
Frequently Asked Questions
Is SCHH cheaper than VNQ?
Yes. SCHH charges 0.07% versus VNQ's 0.12%. For long-term investors, the 0.05% annual savings compounds to meaningful cost advantages over decades. This is educational content, not financial advice.
What is the difference between SCHH and VNQ?
Both hold US REITs, but they track different indexes. VNQ tracks the MSCI US REIT Index (which includes some real estate operating companies), while SCHH tracks the Dow Jones US Select REIT Index (pure REITs only). Composition is very similar in practice. This is educational content, not financial advice.
Does SCHH pay quarterly dividends?
Yes, SCHH distributes quarterly dividends from the REIT income collected. As with all REITs, these distributions are mostly ordinary income. This is educational content, not financial advice.
Is SCHH appropriate for a 401(k)?
Yes, SCHH is an excellent choice for 401(k) or IRA accounts where its REIT income is sheltered from taxes. It provides diversified real estate exposure at very low cost. This is educational content, not financial advice.
Does SCHH include mortgage REITs?
The Dow Jones US Select REIT Index that SCHH tracks focuses on equity REITs (those that own properties) and generally excludes mortgage REITs. Check the fund's fact sheet for the current exact composition. This is educational content, not financial advice.
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