Schwab REIT ETF vs. Vanguard Real Estate ETF: Which Wins for the Long Term?
Schwab charges half Vanguard's fee but lags on yield, while Vanguard's broader portfolio and higher payout appeal to income-focused investors.
Overview
The Vanguard Real Estate ETF (NYSEMKT:VNQ) provides broader market exposure and a higher dividend yield, while the cost-efficient Schwab U.S. REIT ETF (NYSEMKT:SCHH) offers a more concentrated portfolio with lower annual management fees.
Real estate investment trusts (REITs) offer a way to gain exposure to property markets without the burden of managing physical buildings. While both of these funds target U.S. real estate, they differ in index construction, cost, and depth of holdings. This comparison explores how these differences could impact an investor's yield and risk profile over the long term.
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
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Source
Originally published at www.fool.com.