Schwab US REIT ETF

Schwab US REIT ETF (SCHH) is an index fund. As of August 31, 2026, it held 117 US equity real estate investment trusts (REITs), which are companies that own and lease out income-producing property. Its 0.07% expense ratio was the lowest in a group of nine similar REIT funds, where the average was 0.22%. It leaves out mortgage REITs, and its index limits how much weight the largest companies can carry.

• Over the year to Oct 27, 2026, SCHH returned +7.1%, 7th of 9 among similar funds.
• Its 5-year annualized return was +1.5% and its 10-year +4.4%.
• In the 2020 COVID crash it fell 44.2% and regained its old high 14.6 months after the low.
• Its worst full calendar year was 2022 (-25.0%); its best was 2021 (+41.1%).
• The deepest fall in its price history was 44.2% (Feb 21, 2020 to Mar 23, 2020), recovered by Jun 10, 2021.

As of Aug 31, 2026, the fund held 117 securities; the ten largest made up 51.59% of assets.

By sector

• Over the three months to Aug 31, 2026, investors added a net $1.17B (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +1.78%, +2.49%, -2.97%.

SCHH tracks the Dow Jones Equity All REIT Capped Index from S&P Dow Jones Indices. To get in, a publicly traded US equity REIT needs a float-adjusted market value of at least $200 million. Float-adjusted means only shares available to trade are counted. It also needs a three-month median of at least $5 million traded a day. A REIT becomes ineligible if its float-adjusted value stays below $100 million for two quarters in a row. Mortgage REITs, which lend money or buy mortgages, and hybrid REITs are excluded. As of February 27, 2026, the index held 116 REITs.

Larger companies get larger weights, with caps applied at each quarterly rebalance. No single company can top 10%, and companies above 4.5% can make up no more than 22.5% combined. Weights can drift between reviews. The index checks daily and trims if companies above 5% together pass 25%. As of August 31, 2026, Welltower was 11.05% of the fund, Prologis was 8.79%, and the top 10 made up 51.59%.

The fund must keep at least 90% of net assets in index securities and generally copies the index weights. It may put up to 10% elsewhere, including futures used to keep spare cash invested, and it may lend securities to earn extra income. Portfolio turnover was 10%, per the prospectus filed June 26, 2026.

• SCHH charges 0.07% a year, versus an average of 0.22% for the similar funds below (1st of 9, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $7 in the first year and $90 over 10 years (assuming a 5% annual return).

REITs moved partly apart from the broad stock market, with a one-year beta of 0.19 as of October 27, 2026 (beta measures how much a fund tends to move with the market), but their deep drops make SCHH a complement rather than a core holding.

SCHH adds exposure to US property owners. Its trailing yield was 2.95% as of October 27, 2026, paid quarterly. In the SEC's standard $10,000 example, costs come to about $7 after one year. The ride has been bumpy. The fund launched in January 2011, so it has no record from the 2008 crisis. In the 2020 COVID crash it fell 44.2% between February 21 and March 23, 2020, and took 14.6 months to recover. In the 2022 bear market it lost 30.9% and did not regain its peak until April 16, 2026, about 42 months later. Its worst calendar year was 2022, down 25.1%. Anyone forced to sell shares for income during a stretch like that would lock in losses. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.