REZ vs SCHH

REZCiShares Residential and Multisector Real Estate ETF

SCHHASchwab U.S. REIT ETF

In short

REZ The REIT fund that skips the office towers and the malls. REZ owns apartments, rentals, healthcare properties and self-storage, the real estate people live in, age in and stash their stuff in, and it has done so since 2007.

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

REZ The fund seeks to track an index of U.S. residential, healthcare, and self-storage real estate equities.

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

• REZ Narrow by design: residential, healthcare and self-storage landlords, so apartments and rental housing drive it rather than offices, malls and cell towers.ishares.com
• Does what the label says: it stays close to the FTSE Nareit All Residential Capped Index instead of drifting toward generic broad-market REIT exposure.
• Live since 2007, so its record spans the housing crash, the rate shock and the pandemic rent cycle. No other fund in its real estate peer group tracks this same index.
• Roughly 40 property owners, with distributions paid quarterly.

• 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

• REZ At 0.48% a year it costs more than plain broad REIT index funds such as SCHH (0.07%) and VNQ (0.13%). The housing tilt is what the extra fee buys.
• Thinly traded next to the largest REIT funds, which can mean wider bid-ask spreads at the moment of a trade.
• Leaving out offices, malls, data centers and towers means stretches where it moves quite differently from a broad REIT benchmark.

• 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 REZ profile⁠

Full SCHH profile⁠