Real Estate or REIT ETFs - VNQ vs SCHH

Which is better - the Vanguard VNQ REIT ETF or the Schwabb SCHH REIT ETF? What is the difference between these two?

VNQ and SCHH are very similar and have roughly an 82% overlap (but everything in SCHH is in VNQ), so you’re getting a lot of the same. VNQ does however have a broader array of companies.

  • Index - VNQ tracks the MSCI US IMI Real Estate 25/50, SCHH tracks the Dow Jones Equity All REIT Capped. Key difference here is that VNQ index includes companies in real estate, not just REITs (i.e. Redfin and MGM are in VNQ, but not SCHH).
  • Expense ratio - VNQ at 0.12%, SCHH at 0.07%
  • Holdings - VNQ at 177, SCHH at 143
  • Size - VNQ at $32B, SCHH at $4.7B
  • Yield - VNQ at 4.16%, SCHH at 2.59%

Really breaks down to this:

Good site for comparing ETF internal holdings/weights is here:
https://www.etfrc.com/funds/overlap.php

Impossible to say which is outright better because both have their strengths… what are your goals?

I’m looking at REITs right now to hedge inflation, what do you recommend? I like real estate because it hold its value, but looking at the above seems like a lot of those could move in a downturn and may not necessarily be as safe as just land.

Agreed, I’m worried about inflation and market volatility at the moment. I’ve always just done full Real estate ETFS (i.e. VNQ), but am looking more and more at some more pure plays.

Right now looking at REITS for farmland or medical as a good way to build a stable footing.

  • Farmland - FPI, LAND
  • Medical - MPT

Thoughts?

Follow-up - ended going with SCHH which I still think is the better choice ~3 months later.