# SCHH vs VNQ: fees, holdings and returns compared

> SCHH vs VNQ: what each ETF holds, what it costs, and how both did over the same dates, with yearly returns and worst drops.

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](https://tactfolio.com/about/editorial-policy). Fund facts checked October 17, 2026. Prices through October 20, 2026.

## 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.

| Fact | SCHH | VNQ |
| --- | --- | --- |
| Full name | Schwab U.S. REIT ETF | Vanguard Real Estate ETF |
| Issuer | Schwab | Vanguard |
| Expense ratio | 0.07% a year | 0.13% a year |
| Started trading | January 13, 2011 | September 23, 2004 |
| Tracks | Dow Jones Equity All REIT Capped Index | MSCI US Investable Market Real Estate 25/50 Index |
| Holdings | 117 holdings as of February 28, 2026 | 139 holdings as of September 30, 2026 |
| Type | Real estate, ETF | Real estate, ETF |

Fund facts checked on the [Schwab SCHH page](https://www.sec.gov/Archives/edgar/data/1454889/000088454626000300/c497k.htm) and the [Vanguard VNQ page](https://investor.vanguard.com/investment-products/etfs/profile/vnq).

## 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

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.

| Measure | SCHH | VNQ |
| --- | --- | --- |
| $10,000 grew to | $27,481 | $30,960 |
| Total return | 174.8% | 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 months | 7.1% | 4.0% |
| Last 3 years, per year | 13.3% | 12.8% |
| Last 5 years, per year | 1.5% | 0.7% |
| Last 10 years, per year | 3.9% | 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

| Year | SCHH | VNQ |
| --- | --- | --- |
| 2026 (part of the year) | 10.5% | 7.2% |
| 2025 | 2.2% | 3.3% |
| 2024 | 5.0% | 4.8% |
| 2023 | 11.2% | 11.8% |
| 2022 | −25.0% | −26.3% |
| 2021 | 41.1% | 40.5% |
| 2020 | −14.8% | −4.6% |
| 2019 | 22.9% | 28.9% |
| 2018 | −4.2% | −6.0% |
| 2017 | 3.7% | 4.9% |
| 2016 | 6.5% | 8.6% |
| 2015 | 4.4% | 2.4% |
| 2014 | 31.9% | 30.4% |
| 2013 | 1.2% | 2.3% |
| 2012 | 16.8% | 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.

- [Hybrid Asset Allocation (HAA)](https://tactfolio.com/strategies/hybrid-asset-allocation.md), by Wouter Keller and JW Keuning, 2023 (holds VNQ)
- [Bold Asset Allocation (BAA)](https://tactfolio.com/strategies/bold-asset-allocation.md), by Wouter Keller, 2022 (holds VNQ)
- [Defensive Asset Allocation (DAA)](https://tactfolio.com/strategies/defensive-asset-allocation.md), by Wouter Keller and JW Keuning, 2018 (holds VNQ)
- [Protective Asset Allocation (PAA)](https://tactfolio.com/strategies/protective-asset-allocation.md), by Wouter Keller and JW Keuning, 2016 (holds VNQ)
- [Adaptive Asset Allocation (AAA)](https://tactfolio.com/strategies/adaptive-asset-allocation.md), by Adam Butler, Michael Philbrick, Rodrigo Gordillo, and David Varadi, 2012 (holds VNQ)
- [Composite Dual Momentum](https://tactfolio.com/strategies/composite-dual-momentum.md), by Gary Antonacci, 2012 (holds VNQ)
- [Global Tactical Asset Allocation (GTAA 5)](https://tactfolio.com/strategies/global-tactical-asset-allocation.md), by Mebane Faber, 2007 (holds VNQ)
- [Vigilant Asset Allocation G12 (VAA-G12)](https://tactfolio.com/strategies/vigilant-asset-allocation-g12.md), by Wouter Keller and JW Keuning, 2017 (holds VNQ)
- [GTAA 13: Faber’s 13-asset tactical allocation](https://tactfolio.com/strategies/gtaa-13.md), by Mebane Faber, 2013 (holds VNQ)
- [GTAA Aggressive 3 (Faber GTAA AGG3)](https://tactfolio.com/strategies/gtaa-aggressive-3.md), by Mebane Faber, 2013 (holds VNQ)
- [GTAA Aggressive 6 (Faber GTAA AGG6)](https://tactfolio.com/strategies/gtaa-aggressive-6.md), by Mebane Faber, 2013 (holds VNQ)
- [Ivy Portfolio rotation (Faber’s relative strength model)](https://tactfolio.com/strategies/ivy-portfolio-rotation.md), by Mebane Faber and Eric Richardson, 2009 (holds VNQ)
- [Trinity Portfolio (Meb Faber)](https://tactfolio.com/strategies/trinity-portfolio.md), by Mebane Faber, 2016 (holds VNQ)
- [12-Month High Switch (Meb Faber)](https://tactfolio.com/strategies/12-month-high-switch.md), by Mebane Faber, 2020 (holds VNQ)
- [Mama Bear Portfolio (Muscular Portfolios)](https://tactfolio.com/strategies/mama-bear-portfolio.md), by Brian Livingston, 2018 (holds VNQ)
- [Papa Bear Portfolio (Muscular Portfolios)](https://tactfolio.com/strategies/papa-bear-portfolio.md), by Brian Livingston, 2018 (holds VNQ)
- [US Risk Parity Trend-Following (The Trend is Our Friend)](https://tactfolio.com/strategies/us-risk-parity-trend-following.md), by Andrew Clare, James Seaton, Peter N. Smith, and Stephen Thomas, 2016 (holds VNQ)
- [Robust Asset Allocation Balanced (Alpha Architect RAA)](https://tactfolio.com/strategies/robust-asset-allocation-balanced.md), by Wesley Gray (Alpha Architect), 2014 (holds VNQ)
- [Robust Asset Allocation Aggressive (Alpha Architect RAA)](https://tactfolio.com/strategies/robust-asset-allocation-aggressive.md), by Wesley Gray (Alpha Architect), 2014 (holds VNQ)
- [Kipnis Defensive Adaptive Asset Allocation (KDA)](https://tactfolio.com/strategies/kipnis-defensive-asset-allocation.md), by Ilya Kipnis, 2019 (holds VNQ)
- [Ivy Portfolio (Faber and Richardson, buy and hold)](https://tactfolio.com/strategies/ivy-portfolio.md), by Mebane Faber and Eric Richardson, 2009 (holds VNQ)

## 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](https://tactfolio.com/alternatives/SCHH.md) and [VNQ alternatives](https://tactfolio.com/alternatives/VNQ.md).

## Test a mix of SCHH and VNQ

Open the [builder](https://tactfolio.com/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](https://tactfolio.com/etf/SCHH.md) and [VNQ](https://tactfolio.com/etf/VNQ.md), or see [more ETF comparisons](https://tactfolio.com/etf-comparisons.md).

## 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](https://tactfolio.com/docs/backtests.md) for more on these measures.

## Research and test it

- [Portfolio rebalancing](https://tactfolio.com/learn/portfolio-rebalancing): What portfolio rebalancing is, why a 60/40 mix drifts, calendar vs threshold methods, and how taxes and costs fit in.
- [What is an ETF](https://tactfolio.com/learn/what-is-an-etf): An ETF is a fund that trades like a stock. Learn how ETFs work, what they cost, the main types, and the risks, with SEC sources.
- [ETF screener](https://tactfolio.com/screener.md): A free ETF screener for 162 US-listed funds. Filter by type, issuer and fee, sort by returns or worst drop, and compare funds side by side.
- [ETF expense ratio](https://tactfolio.com/learn/etf-expense-ratio): What an ETF expense ratio is, how the fund charges it, and how 0.03% vs 1% adds up over 10 and 30 years, with real fund examples.
- [Backtest a portfolio](https://tactfolio.com/trading-tools/backtest-portfolio): Backtest a portfolio of US stocks and ETFs. Enter tickers and shares, pick when to rebalance, and get the results with a link to share.
- [Backtesting](https://tactfolio.com/backtesting): Free backtesting software for stocks, ETFs, and crypto perps.

## 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

- [Schwab: Schwab U.S. REIT ETF fund page](https://www.sec.gov/Archives/edgar/data/1454889/000088454626000300/c497k.htm)
- [Vanguard: Vanguard Real Estate ETF fund page](https://investor.vanguard.com/investment-products/etfs/profile/vnq)

> Not financial advice. Tactfolio is a research and automation tool. It is not a broker or a financial adviser. This page is for education only. Backtests are hypothetical. They show how rules would have done on past prices, not how they will do. All investing involves risk, including losing the money you put in.