SCHH vs VNQ: fees, holdings and returns

SCHH holds about 120 US REITs, companies that own buildings and land and collect rent. VNQ holds about 140 US real estate companies, mostly REITs, plus some firms that develop or manage property. Both are led by the same large REITs. SCHH charges a lower fee. Over the same dates since January 2011, SCHH returned about 6.6% a year and VNQ returned about 7.4% a year.

Written by the Tactfolio research team. Fund facts checked October 17, 2026. Prices through October 20, 2026.

SCHH

Yearly fee
0.07%
about $7 on $10,000
Return per year
6.6%
since January 2011
Worst drop
−44.2%
since 2011
Started trading
Jan 2011
Schwab

VNQ

Yearly fee
0.13%
about $13 on $10,000
Return per year
7.4%
since January 2011
Worst drop
−42.4%
since 2011
Started trading
Sep 2004
Vanguard

Key points

  • SCHH costs less: 0.07% a year against 0.13%.
  • SCHH started trading in January 2011. VNQ started in September 2004.
  • Worst drops since 2011: SCHH −44.2%, VNQ −42.4%.
  • Daily correlation: 0.99 (1 means they always move together).

What is the difference between SCHH and VNQ?#

SCHH holds only REITs that own property. VNQ’s index also takes real estate service and development companies, which are not REITs. Both leave out most mortgage REITs. Real estate funds tend to fall when interest rates rise, as both did in 2022, and the two have moved closely.

FactSCHHVNQ
Full nameSchwab U.S. REIT ETFVanguard Real Estate ETF
IssuerSchwabVanguard
Expense ratio0.07% a year0.13% a year
Started tradingJanuary 13, 2011September 23, 2004
TracksDow Jones Equity All REIT Capped IndexMSCI US Investable Market Real Estate 25/50 Index
Holdings117 holdings as of February 28, 2026139 holdings as of September 30, 2026
TypeReal estate, ETFReal estate, ETF

Fund facts checked on the Schwab SCHH page and the Vanguard VNQ page.

Is SCHH or VNQ cheaper?#

SCHH costs less: 0.07% a year against 0.13%. On $10,000, that is about $7 a year for SCHH and $13 for VNQ. The fund takes its fee out of its own value a little each day, so you never get a bill.

SCHH vs VNQ performance over the same dates#

$10k$20k20122014201620182020202220242026
SCHHVNQGrowth of $10,000, log scale, with dividends reinvested. Past results do not tell you what happens next.

Both funds are measured from January 2011 to October 2026, the dates both traded. SCHH returned about 6.6% a year and VNQ returned about 7.4% a year. VNQ came out ahead over this period, which does not mean it will again.

MeasureSCHHVNQ
$10,000 grew to$27,481$30,960
Total return174.8%209.6%
Return per year (CAGR)6.6%7.4%
Worst drop from a high−44.2%−42.4%
Volatility (how much it swings)20.0%19.8%
Last 12 months7.1%4.0%
Last 3 years, per year13.3%12.8%
Last 5 years, per year1.5%0.7%
Last 10 years, per year3.9%5.1%

Prices through October 20, 2026. Figures use daily closing prices adjusted for splits, with dividends reinvested. They do not include taxes or the cost of buying and selling. Past results do not tell you what will happen next.

SCHH and VNQ returns by year#

YearSCHHVNQ
2026 (part of the year)10.5%7.2%
20252.2%3.3%
20245.0%4.8%
202311.2%11.8%
2022−25.0%−26.3%
202141.1%40.5%
2020−14.8%−4.6%
201922.9%28.9%
2018−4.2%−6.0%
20173.7%4.9%
20166.5%8.6%
20154.4%2.4%
201431.9%30.4%
20131.2%2.3%
201216.8%17.6%
2011 (part of the year)9.5%8.8%

Which fell further in bad times?#

A drawdown is how far a fund falls from its last high point. SCHH’s worst fall was −44.2%, from February 21, 2020 to March 23, 2020. It got back to that high on June 10, 2021.

VNQ’s worst fall was −42.4%, from February 21, 2020 to March 23, 2020. It got back to that high on April 15, 2021.

Their daily moves had a correlation of 0.99. A correlation of 1 means two funds always move up and down together. Near 0 means they move on their own. So holding both adds little variety.

Why people choose SCHH or VNQ#

SCHH. People who want only property-owning REITs at a low fee tend to pick SCHH.

VNQ. People who want the wider US real estate industry, in the largest real estate fund, tend to pick VNQ.

Strategies that hold SCHH or VNQ#

These classic strategies hold one or both at least some of the time. Each is a set of written rules you can open, test and copy.

Other funds like SCHH and VNQ#

Each fund has more funds that hold the same kind of investments, ranked by how closely they move with it: SCHH alternatives and VNQ alternatives.

Test a mix of SCHH and VNQ#

Open the builder, add SCHH and VNQ, and give each a weight, such as 50% and 50%. The backtest shows how the mix would have done, with its worst drop, on daily prices. You can also add a rule, for example to switch between them, and compare. Read the full pages for SCHH and VNQ, or see more ETF comparisons.

The details#

Both funds use Tactfolio’s stored daily prices, adjusted for splits, with dividends reinvested. They are compared only on days both traded, starting the later fund’s first day, so neither gets a head start. Correlation uses daily returns over the same days. Read what a backtest simulates for more on these measures.

Research and test it

Common questions#

What is a REIT?#

A real estate investment trust owns property such as offices, warehouses, apartments or cell towers, and must pay out most of its taxable income to its owners.

Do SCHH and VNQ hold the same companies?#

Mostly. Their largest holdings are the same big REITs. VNQ also holds a few real estate companies that are not REITs.

Which is cheaper, SCHH or VNQ?#

SCHH costs less: 0.07% a year against 0.13%. Fees come from each issuer and were checked on October 17, 2026.

Which did better, SCHH or VNQ?#

From January 2011 to October 2026, SCHH returned about 6.6% a year and VNQ returned about 7.4% a year, with dividends reinvested. Their worst drops were −44.2% and −42.4%. Past returns do not tell you what comes next.

Sources#