SCHH vs. RWR: A REIT ETF Showdown

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Dear reader, let us contemplate the curious case of two venerable ETFs-SCHH and RWR-each vying for the affection of the discerning investor. One, a paragon of frugality, the other, a maestro of dividends, both seeking to charm the heart of the REIT enthusiast.

Behold, the Schwab U.S. REIT ETF (SCHH +0.04%) boasts a modest fee of 0.07%, a figure so unassuming it might be mistaken for a charitable donation. Meanwhile, the State Street SPDR Dow Jones REIT ETF (RWR +0.08%) offers a more generous dividend yield of 3.87%, akin to a well-timed compliment. Both, in their own way, seek to grant their holders a stake in the American real estate realm, though their methods differ as markedly as a jazz band and a string quartet.

Snapshot (cost & size)

Metric SCHH RWR
Issuer Schwab SPDR
Expense ratio 0.07% 0.25%
1-yr return (as of 2026-1-2) 2.2% 3.2%
Dividend yield 3.03% 3.87%
Beta 1.16 1.18
AUM $8.5 billion $1.7 billion

Beta, that most enigmatic of metrics, measures how a fund dances to the tune of the S&P 500. The one-year return, meanwhile, is a snapshot of its recent escapades.

For those who find solace in fiscal restraint, SCHH’s 0.07% fee is a balm to the soul. Yet RWR, with its 0.25% charge, may seem a trifle steep-though one must not judge a book by its cover, as the wise old proverb reminds us. The latter, however, rewards its adherents with a dividend yield that would make a duchess blush, if only she were inclined to blush.

Performance & risk comparison

Metric SCHH RWR
Max drawdown (5-year) (33.3%) (32.6%)
Growth of $1,000 over 5 years $1,263 $1,359

What’s inside

RWR, that paragon of focus, confines its investments to the American real estate scene, holding 102 REITs as of late 2025. Its top holdings-Prologis, Welltower, and Simon Property Group-form a trio as reliable as a pocket watch. With a 25-year history, it is the elder statesman of the two, offering a track record as solid as a well-aged cheese.

SCHH, by contrast, spreads its assets more liberally, encompassing 123 REITs. Its top three holdings-Welltower, Prologis, and Equinix-mirror RWR’s, though with a slightly different flourish. Its larger asset base, a veritable ocean of capital, may appeal to those who find comfort in scale.

For further enlightenment on ETFs, do consult the full guide at this link, where wisdom abounds like rain in a drought.

What this means for investors

Though RWR and SCHH share eight of their top ten holdings, the former has enjoyed a slight edge in returns since 2011, delivering a compound annual growth rate of 7% versus SCHH’s 6.3%. Over the past year, three years, five years, and even a decade, RWR has proven the more sprightly performer, despite its higher fees. A dash of levity, one might say.

Yet RWR’s 0.25% fee, though thrice that of SCHH’s, is not an exorbitant sum. It is offset by its generous 3.87% dividend yield, which outshines SCHH’s 3.03% like a chandelier in a candlelit room. Moreover, RWR’s smaller five-year drawdown and similar beta suggest it may be the more temperate of the two, a fact that would surely delight a prudent investor.

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In summation, these ETFs are as alike as two peas in a pod, yet RWR, with its superior returns, higher yield, and reasonable volatility, emerges as the victor in this particular contest. That said, SCHH’s larger asset base, lower P/E ratio, and frugal fees may yet charm those who prioritize such virtues. A dilemma, indeed, as vexing as a tangled shoelace.

Glossary

ETF: A basket of assets that trades like a stock, as whimsical as a jester’s hat.
REIT: A company that owns or finances income-producing real estate, much like a landlord with a penchant for bureaucracy.
Expense ratio: The annual cost of running a fund, expressed as a percentage. A figure as unassuming as a teacup.
Dividend yield: The income from dividends, as a percentage of the share price. A measure of generosity, if ever there was one.
Total return: The sum of price changes and dividends, reinvested. A tale of triumph, if you will.
Max drawdown: The largest fall from peak to trough. A most precipitous plunge, if you’ll pardon the metaphor.
Beta: A measure of volatility, akin to a dancer’s grace. Or lack thereof.
AUM: Assets under management, a figure as grand as a cathedral.
Yield: Income from an investment, a measure of its generosity.
Portfolio weighting: The proportion of a fund invested in a particular holding. A matter of balance, much like a tightrope walker.
Track record: The history of an investment’s performance. A chronicle of triumphs and tribulations.
Trading volume: The number of shares traded. A measure of popularity, if you will.

And so, dear reader, we arrive at the end of our tale. May your investments be as prosperous as a well-tended garden, and your dividends as plentiful as a baker’s dozen. 📈

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2026-01-02 22:38