SCHH VS FREL
4 min read
By Beqa Bumbeishvili, ETF Insider

SCHH VS FREL

Exchange-Traded Funds (ETFs) have redefined the landscape of modern investing, providing investors with an innovative way to access diversified exposure across a wide range of sectors and asset classes. In this comprehensive article, we'll delve into a detailed comparison between two prominent ETFs: SCHH (Schwab U.S. REIT ETF) and FREL (Fidelity MSCI Real Estate Index ETF). Our exploration will encompass critical aspects such as ETF tickers, full names, issuers, sectors, top holdings, capitalization, investment strategy, tracking methodology, and exposure.

SCHH Vs FREL: Overview

SCHH and FREL represent two distinct approaches to investing in the real estate sector. While SCHH seeks to track the performance of the U.S. real estate market, FREL aims to replicate the performance of the MSCI USA IMI Real Estate Index. These differing strategies lead to variations in the sectors they cover and the risks associated with their respective portfolios.

SCHH Vs FREL: Sectors and Top Holdings

SCHH predominantly focuses on various segments of the U.S. real estate market, including residential, commercial, and industrial properties. On the other hand, FREL's portfolio consists of holdings within the broader U.S. real estate industry. Understanding the sectors and top holdings of these ETFs can offer valuable insights into the types of properties and companies they are exposed to, aiding investors in making informed decisions aligned with their investment objectives.

SCHH  overlap SCHH VS FRELSCHH overlap SCHH VS FREL

SCHH Vs FREL: Capitalization and Investment Strategy

SCHH commands a significant Asset Under Management (AUM), indicative of its popularity among investors seeking exposure to the U.S. real estate market. FREL's investment strategy revolves around mirroring the performance of the MSCI USA IMI Real Estate Index, which encompasses a broader spectrum of real estate-related companies. The differing capitalization and investment strategies influence the potential returns and associated risks, necessitating careful consideration by investors.

SCHH Vs FREL: Tracking Methodology and Exposure

SCHH employs a tracking methodology designed to closely follow the performance of the U.S. real estate market. It holds a diversified portfolio of real estate investment trusts (REITs) and real estate-related companies. Conversely, FREL's tracking methodology involves replicating the performance of the MSCI USA IMI Real Estate Index, which includes a broader range of real estate holdings. Understanding these tracking approaches and exposure strategies can empower investors to select the ETF that best aligns with their risk tolerance and investment goals.

Conclusion

SCHH and FREL offer investors distinct avenues for gaining exposure to the U.S. real estate market. Whether you're interested in specialized segments or a broader industry scope, these ETFs cater to various investment preferences. For investors seeking deeper insights into the nuances of holdings, correlations, overlaps, and other critical aspects, ETF Insider emerges as the ultimate tool. Through its user-friendly app, it provides comprehensive information on these financial instruments, empowering investors to make well-informed decisions.

Disclaimer: This article is intended for informational purposes only and does not provide investment advisory services. It's crucial to conduct thorough research and consult with financial professionals before making investment decisions.

Sources:
Schwab U.S. REIT ETF (SCHH) Overview. Schwab.
Fidelity MSCI Real Estate Index ETF (FREL) Overview. Fidelity.
MSCI USA IMI Real Estate Index. MSCI.

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FAQ

  • Why is SCHH better than FREL?

    SCHH may be considered better than FREL for some investors due to its specific focus, offering diversification.

  • Does FREL beat SCHH?

    FREL's performance relative to SCHH will vary over time, depending on market conditions.

  • Should I invest in SCHH or FREL?

    The choice between SCHH and FREL should align with your investment goals, risk tolerance, and desired exposure.

  • Are SCHH and FREL good investments?

    Both SCHH and FREL can be suitable investments depending on individual investment strategies, goals, and risk profiles.

  • What is the correlation between SCHH and FREL?

    The correlation between SCHH and FREL can vary over time, reflecting differences in performance.