NETL vs SCHH

NETLFColterpoint Net Lease Real Estate ETF

SCHHASchwab U.S. REIT ETF

In short

NETL One idea, cleanly cut: US REITs whose tenants pay the taxes, insurance and upkeep under long leases. It has tracked a rules-based net lease index since 2019, pays monthly, and charges more than the broad real estate crowd.

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

NETL The Fund is designed to follow the performance of the Colterpoint Net Lease Real Estate Index before fees and expenses.

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

• NETL Pure-play net lease exposure: landlords on long contractual leases where the tenant covers most property costs. Broad REIT funds bury this slice inside offices, towers and malls.netleaseetf.com
• The index screens for net lease specialists and caps how much weight any single company or tenant can carry, so one troubled retailer cannot dominate the book.netleaseetf.com
• Pays distributions monthly rather than the quarterly rhythm most equity real estate funds keep.
• Running the same passive index mandate since its 2019 launch, with the benchmark named in the prospectus.

• 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

• NETL At 0.60% a year, it costs multiples of broad US real estate index funds such as SCHH (0.07%) and VNQ (0.13%). The specialist niche is what you are paying the premium for.
• A small fund that does not trade heavily, so bid-ask spreads can widen, particularly in fast markets.
• Distributions can include return of capital, which hands back part of your own investment rather than income the portfolio earned.

• 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 NETL profile⁠

Full SCHH profile⁠