REIT ETFs: When Two Funds Walk Into a Bar… One Buys a Round

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There’s a certain kind of person who treats ETF selection like choosing a new toothbrush-endless comparisons, whispered consultations with strangers, and the lingering fear that one tiny miscalculation might lead to financial gingivitis. I know this because last Thanksgiving, my cousin Barry cornered me by the cranberry relish to ask, “Why am I paying more for RWR when SCHH does the same thing?” His breath smelled of tryptophan and desperation. I didn’t have the heart to tell him neither fund would make him rich, but both might help him pretend he’s winning at adulthood.

Snapshot (cost & size)

Metric SCHH RWR
Issuer Schwab SPDR
Expense ratio 0.07% 0.25%
1-yr return (as of Jan. 10, 2026) 2.13% 2.43%
Dividend yield 3.04% 3.78%
AUM $8.8 billion $1.7 billion
Beta (5Y monthly) 1.18 1.19

RWR’s 0.25% fee feels like a boutique hotel’s “resort charge”-annoying but forgivable when the mini-bar’s dividend yield pours you a 3.78% cocktail. SCHH, meanwhile, serves the same drink at a 3.04% tab with a 0.07% service fee. Barry, ever the romantic, insisted “I want the one that smells like money.” I nodded. He’d made the same mistake with his wedding venue.

Performance & risk comparison

Metric SCHH RWR
Growth of $1,000 over 5 years $1,141 $1,180
Max drawdown (5Y) -33.26% -32.56%

What’s inside

RWR holds 102 REITs, a mix so concentrated I once described it to my therapist as “the ETF equivalent of a family group chat.” Its top three holdings-Prologis, Welltower, Equinix-account for 24% of assets. It’s like a high school reunion where the same three people dominate the PTA, the chess club, and the parking lot lottery. SCHH, with 123 holdings, spreads its affection wider. It’s the friend who insists on group texts with 20 people “just to keep things interesting.”

What this means for investors

Both funds track U.S. REITs like rival gangs guarding the same turf. Over five years, their returns and volatility levels practically finish each other’s sentences. But SCHH’s $8.8 billion AUM vs. RWR’s $1.7 billion is the financial version of showing up to a dinner party with a six-pack vs. a magnum. Neither’s wrong, but one leaves you scrambling for an Uber.

Barry, now clutching his third slice of pumpkin pie, asked, “So which one’s better?” I thought of my own portfolio-modest, unexciting, and mercifully free of holiday drama. “Depends,” I said. “Do you want to pay less and earn less, or pay more and feel like you’re getting away with something?” He stared blankly. The cranberry relish, it seemed, had gone to his head.

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Glossary

REIT: A tax-averse entity that pays dividends so you can pretend you’re Warren Buffett.
ETF: A financial turducken-assets inside a fund inside a stock.
Expense ratio: The quiet voice in your head whispering, “You’re losing money.”
Dividend yield: Free money, if you squint.
Beta: How jumpy your investment is compared to the market’s caffeine habit.
AUM: The fund’s version of a popularity contest.
Drawdown: What happens when your portfolio plays hide-and-seek with your retirement dreams.
Total return: The story your investments tell about their best and worst days.
Diversification: Putting your eggs in multiple baskets, just in case.
Holdings: The stuff your fund owns when it’s not pretending to be stable.
Portfolio construction: The art of pretending you’ve got a plan.

Invest wisely-or at least wisely enough to avoid another family intervention. 📈

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2026-01-11 12:02