Schwab US REIT ETF

SCHH

Market cap $9.71B

The REIT sector rebounded from a rough 2025 (-3.57%) by starting off 2026 in the black (+1.09%). Small-cap REITs (+3.27%) outperformed in January, followed by solid gains from mid-caps (+2.65%) and large caps (+2.35%). Microcaps, however, had a dismal start to the year with. 63.46% of REIT securities had a positive total return in January.

REITs, as measured by VNQ, have outperformed in 2026, emerging as a safe haven amid tech and market declines. REITs offer reliable, contractual cash flows and dividend yields (3.8%) far exceeding the S&P's 1.15%, with FFO yields at 7.24%. Current REIT valuations (13.8x FFO) are historically cheap relative to the S&P (29.3x earnings), creating a compelling cash flow yield spread.

The Schwab U.S. REIT ETF (NYSEARCA:SCHH) has gained 1.6% year-to-date, but the real question isn't past performance—it's what comes next.

REITs are great additions to your portfolio. Realty Income is a top-notch REIT.

The REIT sector closed out 2025 with a tough December (-1.48%) and finishing the year with a -3.57% total return for 2025. Small caps (+0.51%) eked out a small gain in December, while mid caps (-1.77%), large caps (-2.55%) and micro caps (-3.88%) fell at the close of the year. 42.04% of REIT securities had a positive total return in December with only 38.36% in the black for the full year.

RWR charges a higher expense ratio but delivers a higher dividend yield than SCHH. Both funds are pure-play U.S. REIT portfolios with similar top holdings, but RWR holds fewer securities.

Everything says REITs should be soaring — but they aren't. A hidden headwind is quietly holding returns back. One overlooked niche is where I am pouring my REIT capital.

VNQ charges a higher expense ratio but pays a higher dividend yield than SCHH VNQ is much larger in assets, and both funds have similar sector exposures and top holdings Both ETFs saw similar negative 1-year returns and experienced steep five-year drawdowns These 10 Stocks Could Mint the Next Wave of Millionaires ›

SCHH charges a much lower expense ratio but offers a smaller dividend yield compared to RWR. RWR edges out SCHH on five-year total returns and has a slightly shallower historical drawdown.

The Schwab U.S. REIT ETF ( NYSEARCA:SCHH ) has spent the last year treading water, down roughly 2% while investors waited for interest rates to cooperate.