Choosing between the Schwab U.S. REIT ETF (SCHH +0.08%) and the Vanguard Global ex-U.S. Real Estate ETF (VNQI +0.13%) depends on whether an investor seeks domestic concentration or broad international diversification within the property sector.
Both funds provide targeted real estate exposure, but their geographical footprints are opposites. Schwab U.S. REIT ETF tracks domestic equity real estate investment trusts. In contrast, Vanguard Global ex-U.S. Real Estate ETF excludes the United States entirely, capturing property markets across more than 30 other countries to serve as a broad global diversifier.
Schwab Strategic Trust – Schwab U.s. REIT ETF
Today’s Change
(0.08%) $0.02
Current Price
$23.80
Key Data Points
AUM
$11B
Dividend Yield
2.78%
Expense Ratio
0.07%
Top Holdings
WELL
10.85%
PLD
8.64%
SPG
4.70%
Snapshot (cost & size)
| Metric | VNQI | SCHH |
|---|---|---|
| Issuer | Vanguard | Schwab |
| Share price | $45.33 (as of 2026-07-02) | $24.07 (as of 2026-07-02) |
| Expense ratio | 0.12% | 0.07% |
| 1-yr return (as of 2026-07-02) | 2.20% | 16.20% |
| Dividend yield | 4.80% | 2.80% |
| Beta | 0.95 | 0.98 |
| AUM | $3.8 billion | $11.3 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The Schwab fund is more affordable with a 0.07% expense ratio compared to 0.12% for the Vanguard fund. However, investors prioritizing income may prefer the higher payout from the international portfolio, which currently offers a 4.80% yield.
Performance & risk comparison
| Metric | VNQI | SCHH |
|---|---|---|
| Max drawdown (5 yr) | (34.90%) | (33.30%) |
| Growth of $1,000 over 5 years (total return) | $945 | $1,206 |
What’s inside
Schwab U.S. REIT ETF holds 122 positions, primarily in the real estate sector, which accounts for 99.00% of the portfolio. Its largest positions include Welltower (WELL 0.76%) at 10.81%, Prologis (PLD +0.26%) at 8.44%, and Simon Property Group (SPG +0.25%) at 4.78%. This fund was launched in 2011. Schwab U.S. REIT ETF has paid $0.66 per share over the trailing 12 months, which, on its recent ~$24.07 share price, works out to a 2.80% yield.
Vanguard Global ex-U.S. Real Estate ETF is much broader, holding 682 positions across various international property markets. Its sector allocation is 98.00% real estate, 1.00% consumer cyclical, and 1.00% industrials. Top holdings include Goodman Group (ASX:GMG.AX) at 4.29%, Mitsubishi Estate (TSE:8802) at 2.84%, and Mitsui Fudosan (TSE:8801) at 2.46%. The fund was launched in 2010. Vanguard Global ex-U.S. Real Estate ETF has paid $2.16 per share over the trailing 12 months, which, on its recent ~$45.33 share price, works out to a 4.80% yield.
For more guidance on ETF investing, check out the full guide at this link.
Which ETF is the better buy?
The Vanguard fund’s higher yield will certainly appeal to investors interested in dividend income. Still, Schwab has delivered much superior returns over a longer market cycle, as noted by its trailing 1- and 5-year returns.
SCHH also combines a high-yielding REIT portfolio with some exposure to the growing data center market. The top U.S.-based REITs are invested in data center infrastructure. Its focus on high-quality REITs in the U.S. market may enable the fund to continue delivering superior returns.
However, investors don’t have to decide between SCHH and VNQI. These funds work well as complementary holdings, with Schwab covering the U.S. market and Vanguard adding exposure to international real estate. The choice comes down to each investor’s diversification and income goals.