This Global REIT Beats SCHH on Yield. Is It a Better Buy for Real Estate Investors?
One fund prioritizes cost efficiency with a 0.07% expense ratio and stronger returns, while the other offers global diversification and a 4.3% dividend yield for income investors.
Overview
The Schwab U.S. REIT ETF (NYSEMKT:SCHH) offers a low-cost, domestically focused real estate portfolio, while the Northern Trust Global Quality Real Estate ETF (NYSEMKT:GQRE) provides a higher-yielding, globally diversified alternative for real estate investors.
Both funds provide exposure to the real estate sector, but through different lenses. While one focuses exclusively on the U.S. market with a massive scale, the other looks across borders to find quality properties and higher income potential. This choice depends on a preference for cost efficiency versus geographic breadth and higher current income.
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.
Details
Source
Originally published at www.fool.com.