SCHH vs. RWR: Which U.S. REIT ETF Reigns Supreme?

Core Insights - The article discusses the trade-offs between two REIT ETFs: Schwab U.S. REIT ETF (SCHH) and State Street SPDR Dow Jones REIT ETF (RWR), highlighting their differing structures and strategies [1][2] Cost and Size Comparison - SCHH has a lower expense ratio of 0.07% compared to RWR's 0.25%, appealing to cost-conscious investors [3][4] - SCHH has a larger asset base with $8.5 billion in AUM, while RWR has $1.7 billion [3][7] Performance Metrics - Over the past year, SCHH returned 2.2% while RWR returned 3.2% [3] - RWR has a higher dividend yield of 3.87% compared to SCHH's 3.03% [4][10] - RWR has slightly outperformed SCHH with a compound annual growth rate of 7% since 2011, compared to SCHH's 6.3% [8][9] Risk Assessment - The maximum drawdown over five years for SCHH is (33.3%) while RWR is (32.6%), indicating RWR may be less volatile [5][10] Portfolio Composition - RWR holds 102 REITs with significant positions in Prologis Inc. and Welltower Inc., while SCHH holds 123 REITs with similar top holdings but different weightings [6][7] - Both ETFs have similar portfolios, with eight of their top ten holdings being the same [8] Investor Considerations - RWR's higher expense ratio is offset by its higher dividend yield and better performance metrics, making it potentially more attractive despite the cost [10][11] - SCHH may be a better fit for investors seeking lower fees and a larger asset base [11]