VNQ vs. SCHH: Which Real Estate ETF is the Better Buy?

The choice between the Schwab U.S. REIT ETF (NYSEMKT:SCHH) and the Vanguard Real Estate ETF (NYSEMKT:VNQ) comes down to a familiar investing trade-off: lower costs versus higher income Both exchange-traded funds provide broad exposure to domestic real estate investm

The choice between the Schwab U.S.

REIT ETF (NYSEMKT:SCHH) and the Vanguard Real Estate ETF (NYSEMKT:VNQ) comes down to a familiar investing trade-off: lower costs versus higher income

Both exchange-traded funds provide broad exposure to domestic real estate investment trusts — unique tax-advantaged companies that own and operate income-producing properties ranging from apartment complexes to data centers. While VNQ offers a more seasoned track record and higher current income, SCHH provides a lower-cost entry point into the sector for investors seeking long-term growth. Snapshot (cost & size) Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns.

The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield. SCHH is the less expensive option for long-term holders, with a lean expense ratio of 0.07%, while VNQ charges nearly double that at 0.13%.

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