BBRE vs SCHH

BBREAJPMorgan BetaBuilders MSCI US REIT ETF

SCHHASchwab U.S. REIT ETF

In short

BBRE A no-frills way to own the MSCI US REIT index: about 100 US landlords for 0.11% a year, roughly a third of what the typical real estate ETF charges, with tracking that has stayed tight to the benchmark.

SCHH Landlord exposure at a rounding-error price. SCHH owns the US equity REIT market, roughly 120 of them, for 0.07% a year, a fraction of what the typical real estate fund charges.

Stated mandate

BBRE The Fund seeks to track, before fees and expenses, the performance of the MSCI US REIT.

SCHH The fund seeks to track, before fees and expenses, an index of U.S. equity-classified real estate investment trusts.

Why people hold it

• BBRE 0.11% a year versus a category median near 0.37%. On fees it sits well under the average real estate fund without doing anything clever to get there.
• The mandate is simple: match the MSCI US REIT index before fees. It has tracked that benchmark about as tightly as anything in its peer group.
• About 100 REITs in one line item, with distributions paid quarterly. Rent collection, outsourced.
• Running since 2018 with a billion-dollar-plus asset base behind it, so this is an established fund rather than a launch still finding its footing.

• SCHH 0.07% a year undercuts every major broad REIT rival: VNQ at 0.13%, USRT, FREL and XLRE at 0.08%, against a 0.37% category median.
• Straight-up landlords. The index covers US equity-classified REITs, the companies that own and rent property, not the wider real estate services trade.schwabassetmanagement.com
• It hugs its index about as closely as anything in the broad US REIT group, one of the strongest implementations among its peers.
• A multi-billion-dollar fund that trades heavily, which keeps spreads tight for retail-size orders and has done since its 2011 launch.

Worth knowing

• BBRE It trades lighter than the category's household names like VNQ and SCHH, so spreads can matter more, particularly in size or in a fast market.
• A few rivals shave the fee further: SCHH at 0.07%, USRT and FREL at 0.08%. The gap is small in basis points but it is real.
• One sector, roughly 100 companies. When the property cycle turns, there is no other corner of the fund to cushion it.

• SCHH One sector, about 120 names. It moves with property markets and interest rates, not the broad market, so the ride is bumpier than a total-market fund.
• Income arrives quarterly, not monthly, which matters if you budget off distributions.
• US only, and equity REITs only: no overseas property and no mortgage REITs in the mix.schwabassetmanagement.com

Full BBRE profile⁠

Full SCHH profile⁠