SCHH Offers Low-Cost U.S. REITs While REET Adds Global Reach
The Schwab U.S. REIT ETF (SCHH) gives investors a cheaper way to own domestic equity REITs, while the iShares Global REIT ETF (REET) adds overseas property markets to a portfolio that still has a large U.S. core. For investors, the question is whether that added global reach is worth the higher fee and extra currency and regional risk.
Overview
The primary trade-off between iShares Global REIT ETF (NYSEMKT:REET) and Schwab U.S. REIT ETF (NYSEMKT:SCHH) centers on geographic scope versus cost, as REET offers global reach while SCHH provides cheaper domestic focus.
Investors looking to build a real estate foundation in their portfolios must decide between the relative simplicity of domestic markets and the broad diversification of global property. While both funds provide liquid access to real estate investment trusts, they differ significantly in their geographic reach, total holdings, and expense structures.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Source
Originally published at www.fool.com.