Schwab U.S. REIT ETF (SCHH): Complete Beginner's Guide
Schwab U.S. REIT ETF (SCHH) is a real estate ETF from Schwab with an expense ratio of 0.07% and $7.0B in assets under management. Our Beginner Suitability Score: 9/10 (Great for Beginners). 5-year annualized return: 5.50%.
Last updated: April 2026
Schwab • Real Estate
Expense Ratio
0.07%
AUM
$7.0B
Dividend Yield
3.50%
Inception
2011
Beginner Score
9/10
What is Schwab U.S. REIT ETF?
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.
SCHH is managed by Schwab and has been available since 2011. With $7.0B in assets under management, it's a growing fund that has attracted significant investor interest. The fund charges an expense ratio of 0.07%, which means for every $10,000 you invest, you pay approximately $7 per year in management fees.
SCHH at a Glance — Key Metrics
| Expense Ratio | 0.07% |
| Total Holdings | 120 |
| P/E Ratio | 35.0 |
| Beta | 0.88 |
| Dividend Yield | 3.50% |
| AUM | $7.0B |
| Inception Year | 2011 |
| Issuer | Schwab |
Top 10 Holdings in SCHH
SCHH holds 120 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Prologis Inc. | PLD | 9.50% |
| 2 | American Tower Corp. | AMT | 7.50% |
| 3 | Equinix Inc. | EQIX | 6.50% |
| 4 | Crown Castle Inc. | CCI | 4.20% |
| 5 | Public Storage | PSA | 3.80% |
| 6 | Realty Income Corp. | O | 3.50% |
| 7 | Simon Property Group | SPG | 3.20% |
| 8 | Digital Realty Trust | DLR | 3.00% |
| 9 | Welltower Inc. | WELL | 2.80% |
| 10 | VICI Properties Inc. | VICI | 2.50% |
SCHH's top holding is Prologis Inc. (PLD) at 9.50%, followed by American Tower Corp. (AMT) at 7.50% and Equinix Inc. (EQIX) at 6.50%. The top 10 holdings account for 46.50% of the fund's 120 total positions.
View data table
| Rank | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Prologis Inc. | PLD | 9.50% |
| 2 | American Tower Corp. | AMT | 7.50% |
| 3 | Equinix Inc. | EQIX | 6.50% |
| 4 | Crown Castle Inc. | CCI | 4.20% |
| 5 | Public Storage | PSA | 3.80% |
| 6 | Realty Income Corp. | O | 3.50% |
| 7 | Simon Property Group | SPG | 3.20% |
| 8 | Digital Realty Trust | DLR | 3.00% |
| 9 | Welltower Inc. | WELL | 2.80% |
| 10 | VICI Properties Inc. | VICI | 2.50% |
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SCHH Performance History
Here's how SCHH has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
1.50%
1 Year
12.50%
3 Year
4.00%
5 Year
5.50%
10 Year
6.80%
SCHH has returned 5.50% annualized over 5 years and 6.80% over 10 years. YTD return is 1.50%.
View data table
| Period | Return |
|---|---|
| YTD | 1.50% |
| 1 Year | 12.50% |
| 3 Year | 4.00% |
| 5 Year | 5.50% |
| 10 Year | 6.80% |
Beginner Suitability Score: 9/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
SCHH scores 9/10 because it has very low fees, shows lower-than-average volatility, offers broad diversification across 120 holdings, and has been available since 2011, giving it a proven track record.
How to Buy SCHH — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "SCHH" — Use the search bar in your brokerage platform to find Schwab U.S. REIT ETF.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
SCHH Sector Allocation
Here's how SCHH distributes its investments across different sectors of the economy:
SCHH's largest sector allocation is Specialized REITs at 28.5%, followed by Industrial REITs at 13.5% and Residential REITs at 13.0%.
View data table
| Sector | Weight |
|---|---|
| Specialized REITs | 28.5% |
| Industrial REITs | 13.5% |
| Residential REITs | 13.0% |
| Retail REITs | 11.5% |
| Health Care REITs | 9.5% |
| Office REITs | 7.5% |
| Hotel & Resort REITs | 5.5% |
| Self-Storage REITs | 6.0% |
| Diversified REITs | 3.5% |
| Data Center REITs | 1.5% |
Dollar Cost Averaging Into SCHH
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With SCHH's expense ratio of 0.07%, a $10,000 investment would lose approximately $600 to fees over 20 years compared to a zero-fee investment. This is a reasonable fee level for the value provided.
SCHH's expense ratio of 0.07% costs $601 on a $10,000 investment over 20 years (assuming 8% annual return). Without fees, the investment would grow to $46,610 instead of $46,009.
View data table
| Year | Without Fees | With Fees | Fee Cost |
|---|---|---|---|
| 0 | $10,000 | $10,000 | $0 |
| 5 | $14,693 | $14,646 | $47 |
| 10 | $21,589 | $21,450 | $139 |
| 15 | $31,722 | $31,415 | $307 |
| 20 | $46,610 | $46,009 | $601 |
Pros and Cons of SCHH
Pros
- ✓Very low 0.07% expense ratio makes it one of the cheapest REIT ETFs available
- ✓REITs are required to distribute 90% of taxable income, providing above-average yields
- ✓Real estate offers diversification benefits that differ from stocks and bonds
- ✓Over 120 REIT holdings provide broad exposure across property types
Cons
- ✗REITs are sensitive to rising interest rates which increase borrowing costs
- ✗REIT dividends are typically taxed as ordinary income rather than qualified dividends
- ✗Remote work trends have negatively impacted office and some retail REITs
SCHH vs Similar ETFs
See how SCHH stacks up against similar funds:
Frequently Asked Questions
Is SCHH a good ETF for beginners?▾
SCHH has a Beginner Suitability Score of 9/10 on our scale. This makes it a strong choice for new investors due to its low fees and broad diversification.
What is the expense ratio of SCHH?▾
SCHH has an expense ratio of 0.07%. This means for every $10,000 you invest, you pay approximately $7 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in SCHH?▾
You can invest in SCHH with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does SCHH pay dividends?▾
Yes, SCHH pays dividends with a current yield of approximately 3.50%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in SCHH?▾
The top holdings in SCHH include Prologis Inc. (9.50%), American Tower Corp. (7.50%), Equinix Inc. (6.50%), and more. The fund holds 120 total positions, providing broad diversification across many companies.
What sectors does SCHH invest in?▾
SCHH's largest sector allocations are Specialized REITs (28.50%), Industrial REITs (13.50%), Residential REITs (13.00%). This sector distribution shows a focus on specialized reits stocks.
How much do SCHH's fees cost over time?▾
With an expense ratio of 0.07%, a $10,000 investment in SCHH would lose approximately $600 to fees over 20 years (assuming 8% annual returns). This is a reasonable fee level.