VNQ vs. SCHH: Which Real Estate ETF Is the Better Buy?
One fund charges lower fees, while the other pays a higher dividend. Which approach aligns with your investment goals?
Overview
The choice between the Schwab U.S. REIT ETF (NYSEMKT:SCHH) and the Vanguard Real Estate ETF (NYSEMKT:VNQ) comes down to a familiar investing trade-off: lower costs versus higher income.
Both exchange-traded funds provide broad exposure to domestic real estate investment trusts -- unique tax-advantaged companies that own and operate income-producing properties ranging from apartment complexes to data centers. While VNQ offers a more seasoned track record and higher current income, SCHH provides a lower-cost entry point into the sector for investors seeking long-term growth.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-year 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.