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ETF Comparison

SCHH vs VNQ: Same REIT Neighborhood, Two Indexes

A head-to-head of Schwab US REIT and Vanguard Real Estate covering index rules, fees, and distributions.

Updated October 2, 2026

How these figures are calculated: methodology.

Best for

  • SCHHInvestors who want real-estate income and inflation sensitivity.
  • VNQInvestors who want real-estate income and inflation sensitivity.

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Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.

SCHH has outpaced VNQ over the trailing twelve months, posting a 4.93% total return against 1.45%. The picture flips over 10 years, though — VNQ has compounded at 4.59% a year, ahead of SCHH at 3.40%. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
SymbolYTD cumulative1Y cumulative3Y annualized5Y annualized10Y annualizedSince Jan 2011Volatility Sharpe Sortino Max drawdown
SCHH7.09%4.93%11.42%1.92%3.40%6.44%16.5%0.390.55-17.8%
VNQ3.98%1.45%10.67%1.04%4.59%7.25%16.7%0.340.48-17.5%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of October 2, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Jan 2011” measures every fund from January 13, 2011 — the start of shared available history — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricSCHHVNQ
Full nameSchwab U.S. REIT ETFVanguard Real Estate ETF
IssuerSchwabVanguard
Underlying indexDow Jones Equity All REIT Capped IndexMSCI US IMI Real Estate 25/50 Index
Last Close$21.95 as of October 2, 2026$89.50 as of October 2, 2026
Distribution rate3.15%3.60%
Trailing 12-month yield3.09%3.81%
Distribution Safety Score™ 9290
Safety-Adjusted Yield 2.90%3.24%
Expense ratio0.07%0.13%
AUM$10.7B$36.5B
Distribution frequencyQuarterlyQuarterly
ObjectiveSeeks to track as closely as possible, before fees and expenses, the total return of the Dow Jones Equity All REIT Capped Index.Track the MSCI US Investable Market Real Estate 25/50 Index.
Asset classEquityEquity
Inception date01/13/201109/23/2004
Beta0.970.98
Last dividend$0.173$0.8046
Ex-dividend date09/23/202609/23/2026

Bottom lineSCHH and VNQ are both for investors who want real-estate income and inflation sensitivity — so strategy isn't the deciding factor here. Fees and payouts are close too, so it comes down to which your broker offers commission-free and any share-price or tax-lot preference.

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Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

Schwab
ETFs33
Total AUM$612B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Schwab is a major provider of low-cost, broad-based ETFs known for making investing accessible to individual investors through its discount brokerage platform. The issuer's fund lineup spans multiple categories including core index funds, dividend and income-focused strategies, factor-based approaches, international exposure, fixed income, and digital assets, with popular core holdings like SCHB (U.S. broad market) and SCHD (dividend appreciation) alongside more specialized thematic offerings. Schwab's ETF suite is characterized by its breadth across asset classes and investment styles, competitive expense ratios, and integration with its retail brokerage ecosystem.

See our curated list of related YouTube videos on SCHH.

See all Schwab ETFs
Vanguard
ETFs116
Total AUM$4676B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Vanguard is one of the largest and most established ETF issuers, known for low-cost, broadly diversified fund offerings built on passive indexing principles. Their lineup spans multiple asset classes and strategies, including core equity and bond index funds, dividend-focused portfolios, ESG-screened options, factor-based strategies, sector exposure, target-date retirement funds, and international investments across developed and emerging markets. The platform is characterized by its emphasis on accessibility and cost efficiency across a comprehensive range of fund families, serving both individual investors seeking broad market exposure and those pursuing specific income, sustainability, or thematic objectives.

See our curated list of related YouTube videos on VNQ.

See all Vanguard ETFs

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Quick verdict

SCHH (Schwab U.S. REIT ETF) and VNQ (Vanguard Real Estate ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

VNQ offers the higher yield at 3.60% vs 3.15% for SCHH. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

SCHH is cheaper with an expense ratio of 0.07% compared to 0.13%.

They have different reference exposures: SCHH is linked to Dow Jones Equity All REIT Capped Index while VNQ is linked to MSCI US IMI Real Estate 25/50 Index, which means their performance drivers differ.

VNQ is the larger fund by assets ($36.5B), but assets alone do not establish trading costs or liquidity.

Deep dive

Yield & income

On a $10,000 investment, SCHH would generate roughly $78.75 cash per distribution, while VNQ would produce $90.00 cash per distribution, at current distribution rates. Both pay quarterly distributions.

SCHH yield3.15%
VNQ yield3.60%
Cash diff on $10K$11.25

Cost & efficiency

Over 10 years on $10,000, SCHH would cost approximately $70 in fees vs $130 for VNQ (simplified, not compounded). The $60.00 difference may be offset by yield or performance.

SCHH ER0.07%
VNQ ER0.13%

Strategy & risk

SCHH tracks Dow Jones Equity All REIT Capped Index with a real estate approach, while VNQ tracks MSCI US IMI Real Estate 25/50 Index with a dividend approach. Beta is 0.97 for SCHH and 0.98 for VNQ — effectively similar market sensitivity.

SCHH beta0.97
VNQ beta0.98

Fund details

SCHH is managed by Schwab (launched 01/13/2011) with $10.7B in assets. VNQ is managed by Vanguard (launched 09/23/2004) with $36.5B in assets.

SCHH AUM$10.7B
VNQ AUM$36.5B
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Frequently asked questions

What is the difference between SCHH and VNQ?

Both hold listed US real estate, on different indexes. SCHH (Schwab U.S. REIT ETF) tracks Dow Jones Equity All REIT Capped Index. VNQ (Vanguard Real Estate ETF) tracks MSCI US IMI Real Estate 25/50 Index. Cost is 0.07% versus 0.13%; size is $10.7B versus $36.5B. Distributions are 3.15% and 3.60% as of October 2026.

What is the current distribution rate for SCHH and VNQ?

SCHH currently distributes 3.15% and VNQ 3.60%, based on fund data updated October 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is SCHH or VNQ better for dividend income?

It depends on your goals. VNQ currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

Can I hold both SCHH and VNQ?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Is SCHH or VNQ safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — they are effectively tied: SCHH scores 92, VNQ scores 90. Neither has a clear safety edge on that measure. No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, SCHH or VNQ?

SCHH has an expense ratio of 0.07% while VNQ charges 0.13%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in SCHH vs VNQ generate?

At current rates, $10,000 in SCHH would generate roughly $78.75 cash per distribution ($315.00 annually). The same in VNQ would produce about $90.00 cash per distribution ($360.00 annually).

Which has performed better historically, SCHH or VNQ?

SCHH has outpaced VNQ over the trailing twelve months, posting a 4.93% total return against 1.45%. The picture flips over 10 years, though — VNQ has compounded at 4.59% a year, ahead of SCHH at 3.40%. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

SCHH vs VNQ — at a glance

Generated October 3, 2026.

Overview

SCHH and VNQ are both broad U.S. real estate investment trust ETFs designed to track the overall REIT market. The key distinction is scale and index composition: VNQ is substantially larger and has been operating longer, while SCHH offers a lower expense ratio and a different underlying index methodology.

How they differ

SCHH's 0.07% expense ratio undercuts VNQ's 0.13% by 0.06%—a meaningful difference on a $100,000 position over a decade. VNQ offers a higher distribution rate of 3.60% against SCHH's 3.15%, a 0.45% spread. The gap likely reflects different index methodologies: VNQ uses a broad investable-market approach while SCHH applies a capped-index framework, which may select or weight REITs differently. VNQ's asset base of $36.5B substantially exceeds SCHH's $10.7B, and VNQ launched in 2004 versus SCHH in 2011. Both exhibit near-identical market sensitivity, with betas of 0.97 and 0.98 respectively. real estate exposure from a smaller, lower-cost vehicle.

Key risks to know

  • Index methodology divergence. The Dow Jones Capped Index and MSCI Investable Market Index select and weight REITs using different rules, meaning SCHH and VNQ may hold overlapping but distinct portfolios. Holdings overlap should be verified before combining them, as index construction—not manager skill—drives any performance gaps.
  • Real estate sector cyclicality. Both funds concentrate entirely on REITs, exposing holders to interest-rate sensitivity and commercial real estate cycles. Rising rates typically pressure REIT valuations, and downturns in specific property types (office, retail, industrial) ripple through the entire fund.
  • Distribution sustainability in low-rate environments. Both funds yield in the 3–4% range. When interest rates decline sharply, REIT yields compress and distributions may rely partly on return of capital, risking NAV erosion over extended periods of below-average rate environments. Both seek to replicate broad REIT market indexes through different underlying methodologies, so the choice hinges on fee tolerance and fund size preference rather than fundamentally different real estate strategies. Past performance does not predict future results.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

Learn the method

The metrics behind this comparison, explained in the Academy.

How REITs pay income How to read a fund's stats Return of capital, explained

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These comparisons follow the Dividend Vision methodology.