Key Takeaways
- • The Globe and Mail's comparison piece pits the Schwab U.S. REIT ETF (SCHH) against the Xtrackers International Real Estate ETF, framing the question of which real estate ETF is the better buy in 2026.
- • SCHH carries a 0.070% net expense ratio, the lowest among the REIT ETFs compared in available sources, versus 0.13% for the Vanguard Real Estate ETF.
- • SCHH tracks an index of U.S. equity REITs and excludes mortgage REITs, hybrid REITs and non-REIT real estate stocks, per Schwab's fund materials.
- • Sources note REIT ETFs have continued to function as real estate investments despite a broader slump in real estate, according to a separate ETF research piece.
Summary
Schwab's fund materials describe SCHH's objective as tracking, before fees and expenses, the total return of an index of U.S. real estate investment trusts classified as equities. The index excludes mortgage REITs and hybrid REITs, and the fund offers simple, low-cost access to REITs without the non-REIT stocks that some other real estate indices include. Schwab positions the fund as a core or complementary holding within a diversified portfolio. Its net expense ratio is 0.070%, which publisher comparisons describe as the cheapest option among the REIT ETFs they assess. Against the Vanguard Real Estate ETF at 0.13%, that represents a 6-basis-point cost advantage, though one comparison notes that Vanguard offers a higher dividend yield.
The Xtrackers International Real Estate ETF follows a passive, indexing approach aimed at results that correspond generally to its underlying index. Its international mandate contrasts with SCHH's domestic focus, which is the central distinction the comparison appears to draw. Available sources do not provide performance figures, yield data or holdings details for either fund in the material retrieved.
Independent research cited in the available material argues that REIT ETFs have not been spared by a real estate slump, though it also contends that the vehicles still function as a means of real estate exposure. Readers seeking the Globe and Mail's specific performance comparisons and conclusions should consult the original article.
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