SCHH VS VNQ
4 min read
By Ron Koren, ETF Insider

SCHH VS VNQ

Exchange-Traded Funds (ETFs) have become increasingly popular for investors seeking exposure to the real estate sector. In this article, we will conduct a thorough comparison between two prominent real estate ETFs: SCHH (Schwab U.S. REIT ETF) and VNQ (Vanguard Real Estate ETF). We will explore their ETF tickers, full names, issuers, sectors, top holdings, capitalization, investment strategy, tracking methods, and exposure.

SCHH VS VNQ: Overview

SCHH and VNQ are both real estate ETFs, but they have subtle differences in their approach to the sector. SCHH aims to replicate the performance of the Dow Jones U.S. Select REIT Index, while VNQ tracks the MSCI U.S. REIT Index. These distinctions influence the composition of their portfolios and their performance characteristics, which we'll delve into further.

SCHH VS VNQ: Sectors and Top Holdings

The composition of SCHH and VNQ varies when it comes to the real estate sectors they focus on. SCHH typically includes a wide range of real estate subsectors, such as residential, office, and industrial properties. VNQ, on the other hand, has a heavier concentration in retail and specialized REITs. Understanding these sector allocations can help investors align their investments with their preferences and risk tolerance.

SCHH overlap SCHH VS VNQSCHH overlap SCHH VS VNQ

SCHH VS VNQ: Capitalization and Investment Strategy

Capitalization and investment strategy are vital aspects to consider when comparing these two ETFs. SCHH boasts a substantial asset under management (AUM), which reflects its popularity among investors looking for broad exposure to the U.S. real estate market. VNQ, as a Vanguard ETF, employs a passive investment strategy, seeking to match the performance of its benchmark index. These differences in capitalization and strategy can impact the potential returns and risk profiles of the two funds.

SCHH VS VNQ: Tracking Methods and Exposure

SCHH and VNQ differ in their tracking methods and exposure. SCHH primarily invests in real estate investment trusts (REITs) and aims to provide investors with exposure to the overall performance of the U.S. real estate market. VNQ, on the other hand, tracks an index that includes both REITs and real estate operating companies (REOCs). This distinction can lead to variations in their performance and risk characteristics. Investors should carefully assess these differences to determine which ETF aligns better with their investment objectives.

Conclusion

SCHH and VNQ are both valuable tools for investors seeking exposure to the real estate sector, but they offer distinct approaches to achieving that exposure. To gain deeper insights into their holdings, correlations, overlaps, and other crucial information, consider using ETF Insider—an intuitive and user-friendly app designed to provide comprehensive details on various financial instruments.

Disclaimer: This article does not provide any investment advisory services.

SCHH ETF issuer
SCHH ETF official page

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