Exchange-Traded Funds (ETFs) have transformed the landscape of investing, providing a diversified approach to gaining exposure across various sectors and asset classes. In this article, we will embark on a comprehensive journey through a comparison between two prominent ETFs: SCHH (Schwab U.S. REIT ETF) and REET (iShares Global REIT ETF). We'll explore various dimensions, including ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.
SCHH and REET are two distinct ETFs with a common focus on real estate investment trusts (REITs). However, they differ in their scope of geographical exposure. SCHH is primarily concentrated on U.S. REITs, while REET offers a global approach by including REITs from various countries. This contrast in geographical concentration leads to diverse market exposure and potential risk factors.
The SCHH ETF is designed to track the performance of the U.S. real estate sector, encompassing residential, commercial, and industrial properties. Some of its top holdings include well-known REITs such as American Tower Corporation, Prologis Inc., and Crown Castle International Corp. On the other hand, REET provides a broader global exposure, incorporating REITs from different sectors like office, retail, residential, and healthcare properties. Analyzing the sectors and top holdings aids investors in choosing the ETF that aligns with their real estate investment preferences.
SCHH overlap SCHH VS REET
SCHH boasts a substantial asset under management (AUM) due to its targeted focus on the U.S. real estate market. Its strategy involves closely tracking the performance of U.S. REITs. REET, with its global perspective, captures the performance of REITs worldwide, aiming to provide investors with comprehensive real estate exposure. The differing capitalization and strategy between the two ETFs influence potential returns and risk, necessitating careful evaluation by investors.
SCHH is designed to mirror the performance of the Dow Jones U.S. Select REIT Index, which includes various U.S. REITs. This tracking strategy aims to provide investors with a snapshot of the U.S. real estate market. In contrast, REET seeks to replicate the performance of the FTSE EPRA/NAREIT Global REIT Index, offering a broader global REIT exposure. Understanding the tracking methods and exposure strategies assists investors in making informed decisions based on their geographical and market preferences.
SCHH and REET represent distinctive approaches to investing in the real estate sector. Investors seeking in-depth insights into holdings, correlations, overlaps, and other pertinent information can turn to ETF Insider—an intuitive application offering a wealth of information on these and other financial instruments. With its user-friendly interface, ETF Insider equips investors with valuable tools to navigate the complexities of the ETF landscape and make informed investment choices.
Disclaimer: This article is intended solely for informational purposes and does not offer any investment advisory services.
Sources:
Schwab U.S. REIT ETF (SCHH) Fact Sheet
iShares Global REIT ETF (REET) Overview
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SCHH may be considered better than REET for some investors due to its specific focus, offering diversification.
REET's performance relative to SCHH will vary over time, depending on market conditions.
The choice between SCHH and REET should align with your investment goals, risk tolerance, and desired exposure.
Both SCHH and REET can be suitable investments depending on individual investment strategies, goals, and risk profiles.
The correlation between SCHH and REET can vary over time, reflecting differences in performance.