KBWY vs SCHH

KBWYBInvesco KBW Premium Yield Equity REIT ETF

SCHHASchwab U.S. REIT ETF

In short

KBWY Most real estate ETFs own the sector by size. KBWY goes yield hunting instead: a tight basket of roughly 30 equity REITs picked for premium payouts, with cash out the door monthly.

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

KBWY The fund seeks to track, before fees and expenses, the performance of the MSCI US REIT Index.

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

• KBWY A yield-first slice of the REIT market rather than a cap-weighted mirror of it: around 30 equity REITs screened for premium payouts, distributing monthly.
• At 0.35% a year, the fee sits a shade under the typical US real estate ETF, which is unusual for a screened, non-vanilla strategy.
• Live since 2010 and a close reader of its own rulebook: it stays tightly aligned with its stated yield mandate, and lands in the upper half of its real estate peer group.

• 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

• KBWY Roughly 30 holdings, so one landlord's bad quarter shows up here far louder than in broad REIT funds holding hundreds of names.
• Plain cap-weighted REIT trackers cost far less: SCHH at 0.07% and VNQ at 0.13% versus 0.35% here. You are paying for the yield screen.
• Moderately traded rather than a category heavyweight, so spreads can run wider than the largest real estate ETFs, especially in fast markets.

• 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 KBWY profile⁠

Full SCHH profile⁠