Schwab U.S. REIT ETF (SCHH): Complete Beginner's Guide
Last updated: March 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% |
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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%
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.
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.
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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.