VNQ vs SCHH: Head-to-Head Comparison
VNQ vs SCHH: Vanguard Real Estate ETF has an expense ratio of 0.12% while Schwab U.S. REIT ETF charges 0.07%. VNQ holds 160 securities vs SCHH's 120. 5-year returns: 4.80% vs 5.50%.
Last updated: April 2026
Real Estate
Quick Verdict
SCHH edges out VNQ with a stronger Beginner Suitability Score (9 vs 8.5). It offers lower fees for new investors.
Side-by-Side Comparison
| Metric | VNQ | SCHH |
|---|---|---|
| Expense Ratio | 0.12% | 0.07% |
| AUM | $34.0B | $7.0B |
| Dividend Yield | 3.90% | 3.50% |
| Holdings | 160 | 120 |
| 1-Year Return | 11.20% | 12.50% |
| 5-Year Return (Ann.) | 4.80% | 5.50% |
| 10-Year Return (Ann.) | 6.50% | 6.80% |
| Beta | 1.05 | 0.88 |
| P/E Ratio | 35.2 | 35.0 |
VNQ 5-year annualized return is 4.80% compared to SCHH's 5.50%. Over 10 years, VNQ returned 6.50% vs SCHH's 6.80%.
View data table
| Period | VNQ Return | SCHH Return |
|---|---|---|
| YTD | 0.80% | 1.50% |
| 1 Year | 11.20% | 12.50% |
| 3 Year | 2.10% | 4.00% |
| 5 Year | 4.80% | 5.50% |
| 10 Year | 6.50% | 6.80% |
Key Differences Between VNQ and SCHH
VNQ (Vanguard Real Estate ETF) is a real estate fund managed by Vanguard. VNQ provides exposure to the U.S. real estate market through Real Estate Investment Trusts (REITs) without the hassle of buying physical property. REITs are required by law to distribute at least 90% of their taxable income as dividends, which gives VNQ a higher yield than most equity ETFs. Beginners interested in real estate investing can use VNQ to add property exposure to their portfolio at a fraction of the cost of buying a building.
SCHH (Schwab U.S. REIT ETF) is a real estate fund managed by Schwab. SCHH provides low-cost exposure to U.S. real estate investment trusts, companies that own and operate income-producing properties like apartments, offices, and warehouses. REITs are required to distribute most of their income as dividends, making SCHH a strong option for income seekers. Beginners can use SCHH to add real estate diversification to a stock-and-bond portfolio without buying physical property.
The most notable differences are in fees (0.12% vs 0.07%), number of holdings (160 vs 120), and 5-year returns (4.80% vs 5.50%).
VNQ vs SCHH multi-factor comparison: VNQ has a 0.12% expense ratio, 4.80% 5-year return, 160 holdings, 1.05 beta, and 3.90% yield. SCHH has 0.07% expense ratio, 5.50% 5-year return, 120 holdings, 0.88 beta, and 3.50% yield.
View data table
| Metric | VNQ | SCHH |
|---|---|---|
| Expense Ratio | 0.12% | 0.07% |
| 5-Year Return | 4.80% | 5.50% |
| Holdings | 160 | 120 |
| Beta | 1.05 | 0.88 |
| Dividend Yield | 3.90% | 3.50% |
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Holdings Overlap Analysis
100%
Holdings Overlap
VNQ and SCHH share 100% of their top holdings. This means they are very similar funds — owning both would result in significant duplication in your portfolio. For most beginners, choosing one is sufficient.
VNQ and SCHH share 100% of their top holdings (high overlap). VNQ has 160 total holdings and SCHH has 120. Common holdings include PLD, AMT, EQIX.
View data table
| Metric | VNQ | SCHH |
|---|---|---|
| Overlap | 100% | 100% |
| Unique Holdings | 0% | 0% |
| Total Holdings | 160 | 120 |
Cost Comparison Over Time
If you invest $10,000 and hold for 20 years (assuming 8% annual returns):
VNQ
Fee cost: $1,025
SCHH
Fee cost: $600
Over 20 years, the fee difference amounts to $425 on a $10,000 investment. SCHH saves you more in fees over time.
On a $10,000 investment over 20 years at 8% return, VNQ (0.12% fee) grows to $45,585 while SCHH (0.07% fee) grows to $46,009. The fee difference costs $424.
View data table
| Year | VNQ Value | SCHH Value |
|---|---|---|
| 0 | $10,000 | $10,000 |
| 5 | $14,612 | $14,646 |
| 10 | $21,351 | $21,450 |
| 15 | $31,197 | $31,415 |
| 20 | $45,585 | $46,009 |
Which One Should a Beginner Choose?
Choose VNQ if: You want income-seeking investors who want real estate exposure without being a landlord, investors looking to diversify beyond stocks and bonds, those who want inflation protection through real asset ownership. It's managed by Vanguard with an expense ratio of 0.12%.
Choose SCHH if: You want income investors who want real estate exposure without owning physical property, portfolio diversifiers adding an asset class with different return drivers, schwab customers seeking the lowest-cost u.s. reit fund available. It's managed by Schwab with an expense ratio of 0.07%.
Can You Own Both VNQ and SCHH?
With 100% holdings overlap, owning both means you're essentially doubling down on the same stocks. For beginners, we recommend picking one to keep things simple. If you want more diversification, consider pairing your choice with an international ETF like VXUS or a bond ETF like BND instead.
Frequently Asked Questions
Should I buy VNQ or SCHH?▾
SCHH edges out VNQ with a stronger Beginner Suitability Score (9 vs 8.5). It offers lower fees for new investors. However, both are solid options. VNQ is best for investors who want income-seeking investors who want real estate exposure without being a landlord, while SCHH is better suited for income investors who want real estate exposure without owning physical property.
What is the difference between VNQ and SCHH?▾
VNQ (Vanguard Real Estate ETF) tracks real estate investments with 160 holdings and a 0.12% expense ratio. SCHH (Schwab U.S. REIT ETF) focuses on real estate with 120 holdings at 0.07%. Their top holdings overlap by 100%.
Can I own both VNQ and SCHH?▾
Since VNQ and SCHH have 100% holdings overlap, owning both means significant duplication. Most beginners are better off choosing one.