Which Is the Better U.S. REIT ETF: Schwab's Broad SCHH or iShares' Concentrated ICF?

Sara Appino, The Motley Fool

Wed, August 12, 2026 astatine 7:48 AM CDT 5 min read

The Schwab U.S. REIT ETF (NYSEMKT:SCHH) provides broad-market existent property vulnerability astatine a little cost, portion the iShares Select U.S. REIT ETF (NYSEMKT:ICF) targets the industry's astir ascendant leaders done a concentrated 30-stock portfolio.

Real property concern trusts (REITs) supply a liquid avenue for investors to entree spot markets without nonstop ownership of carnal buildings. While some funds seizure the U.S. equity REIT landscape, they disagree importantly successful their strategy, with 1 money focusing connected market-wide diversification and the different narrowing its scope to the largest blue-chip players successful the industry.

Snapshot (cost & size)

Beta measures terms volatility comparative to the S&P 500; beta is calculated from monthly returns implicit the disposable money past (up to 5 years). The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months. Dividend output is the trailing-12-month organisation yield.

Investors whitethorn find the Schwab money much charismatic for semipermanent holding owed to its 0.07% disbursal ratio, which is importantly little than the 0.32% interest for the iShares fund. This quality successful costs tin compound implicit time, perchance impacting full returns for semipermanent investors. Additionally, the Schwab money offers a higher trailing dividend payout.

Performance & hazard examination

What's wrong

The Schwab U.S. REIT ETF provides broad-market vulnerability by tracking an scale of U.S. equity-classified REITs, which presently includes 121 holdings. This diversified attack results successful a 100% allocation to the existent property assemblage and limits the interaction of idiosyncratic institution volatility. Its largest positions see Welltower (NYSE:WELL) astatine 10.90%, Prologis (NYSE:PLD) astatine 8.65%, and Simon Property Group (NYSE:SPG) astatine 4.73%. This money was launched successful 2011. The Schwab U.S. REIT ETF has paid $0.66 per stock implicit the trailing 12 months, which connected its caller ~$23.77 stock terms works retired to a 2.8% yield.

The iShares Select U.S. REIT ETF takes a overmuch much concentrated stance, focusing connected 30 of the astir ascendant and influential REITs successful the United States. By focusing connected these manufacture leaders, the money aims to seizure the show of the companies that specify the U.S. existent property landscape. While its circumstantial assemblage breakdown is not reported, its apical holdings see Welltower astatine 8.57%, Prologis Reit astatine 7.90%, and Equinix (NASDAQ:EQIX) astatine 7.54%. This money was launched successful 2001. The iShares Select U.S. REIT ETF has paid $1.66 per stock implicit the trailing 12 months, which connected its caller ~$67.83 stock terms works retired to a 2.5% yield.