VNQ vs SCHH Stock Comparison: AI Score, Valuation, Performance and Upside
VNQ and SCHH both provide diversified U.S. REIT exposure, with SCHH's 0.07% expense ratio versus VNQ's 0.13% being the primary differentiator for long-term investors. VNQ has dramatically more AUM and liquidity, making it the better trading vehicle. SCHH offers better cost efficiency for long-term buy-and-hold investors who do not need maximum liquidity.
VNQ vs SCHH is a cost-versus-liquidity trade-off for near-identical U.S. REIT exposure — investors who prioritize cost minimization choose SCHH, while investors who prioritize maximum liquidity or plan to trade actively choose VNQ.
SCHH holds the edge across 3 of 5 key metrics in this comparison. SCHH has delivered stronger 1-year price return (+8.92% vs +4.62% for VNQ).
- prefer the most liquid REIT ETF with the largest AUM and tightest bid-ask spreads for frequent trading
- value Vanguard's brand and ownership structure for long-term REIT sector exposure
- want broad real estate coverage including real estate operating companies alongside REITs
- are comfortable paying 0.13% expense ratio for significantly better execution quality than SCHH
- prefer the lowest cost U.S. REIT ETF (0.07%) for buy-and-hold income-oriented real estate exposure
- value REIT-only purity without real estate operating company inclusions
- want position-capped REIT exposure to prevent over-concentration in any single large REIT
- are comfortable with lower daily trading volume and slightly wider bid-ask spreads in exchange for cost savings
| Metric | VNQ | SCHH |
|---|---|---|
| ETF scorei | 38.0 | 46.0 |
| Latest closei | $92.91 | $22.74 |
| 1M returni | -5.78% | -5.25% |
| 6M returni | +6.74% | +7.84% |
| 1Y returni | +4.62% | +8.92% |
The ETF score weights long-term returns and risk-adjusted performance most heavily, but still rewards low expense ratios, larger fund size, and broader diversification — so it can favor low-cost, broad, mega-cap funds over smaller thematic or actively-managed funds even when the latter have delivered stronger returns.
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | VNQ | SCHH |
|---|---|---|
| 1Y ago | $10.87K (+8.7%) started 2025-09-18 | $11.23K (+12.3%) started 2025-09-18 |
| 5Y ago | $13.14K (+31.4%) started 2021-09-20 | $12.92K (+29.2%) started 2021-09-20 |
| 10Y ago | $25.64K (+156.4%) started 2016-09-19 | $19.77K (+97.7%) started 2016-09-19 |
Hypothetical — past performance does not guarantee future results.
| Metric | VNQ | SCHH |
|---|---|---|
| Expense ratioi | 0.13% | 0.07% |
| Total assets (AUM)i | $70.82B | $11.2B |
| Dividend yieldi | 3.60% | 2.80% |
| Trailing P/Ei | 29.09 | 29.53 |
| Betai | 0.99 | 0.95 |
| 52-week change | 4.62% | 8.92% |
| Metric | VNQ | SCHH |
|---|---|---|
| 1Y returni | +4.62% | +8.92% |
| 6M returni | +6.74% | +7.84% |
| 1M returni | -5.78% | -5.25% |
| 1Y Sharpe ratio | 0.07 | 0.37 |
| Betai | 0.99 | 0.95 |
| Dividend yieldi | 3.60% | 2.80% |
| 5Y CAGR | +1.26% | +2.04% |
Over the past year, VNQ and SCHH have moved strongly in the same direction (correlation of 0.99), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | VNQ | SCHH |
|---|---|---|---|
| 1Y | Growthi | +4.62% | +8.92% |
| CAGRi | +4.62% | +8.93% | |
| Volatilityi | 13.58% | 13.65% | |
| Sharpe ratioi | 0.07 | 0.37 | |
| Sortino ratioi | 0.10 | 0.52 | |
| Max drawdowni | 8.34% | 8.53% | |
| Current drawdowni | 7.96% | 8.53% | |
| Avg drawdowni | 2.30% | 2.30% | |
| Ulcer Indexi | 2.98% | 3.05% | |
| Max daily dropi | 3.10% | 3.31% | |
| Max wkly dropi | 4.81% | 4.94% | |
| 5Y | Growthi | +6.47% | +10.61% |
| CAGRi | +1.26% | +2.04% | |
| Volatilityi | 18.87% | 18.76% | |
| Sharpe ratioi | -0.08 | -0.04 | |
| Sortino ratioi | -0.11 | -0.05 | |
| Max drawdowni | 34.48% | 33.28% | |
| Current drawdowni | 7.96% | 8.53% | |
| Avg drawdowni | 14.51% | 13.68% | |
| Ulcer Indexi | 16.96% | 16.13% | |
| Max daily dropi | 5.00% | 4.95% | |
| Max wkly dropi | 12.07% | 12.03% | |
| 10Y | Growthi | +59.99% | +42.46% |
| CAGRi | +4.81% | +3.60% | |
| Volatilityi | 20.70% | 20.97% | |
| Sharpe ratioi | 0.11 | 0.06 | |
| Sortino ratioi | 0.16 | 0.08 | |
| Max drawdowni | 42.40% | 44.22% | |
| Current drawdowni | 7.96% | 8.53% | |
| Avg drawdowni | 10.38% | 10.90% | |
| Ulcer Indexi | 13.72% | 14.27% | |
| Max daily dropi | 17.73% | 18.18% | |
| Max wkly dropi | 24.91% | 25.85% |
| Category | VNQ | SCHH |
|---|---|---|
| Fund name | Vanguard Real Estate Index Fund ETF Shares | Schwab U.S. REIT ETF |
| Type | ETF | ETF |
| Expense ratioi | 0.13% | 0.07% |
| Total assets (AUM)i | $70.82B | $11.2B |
| Dividend yieldi | 3.60% | 2.80% |
- Broadest REIT ETF by holdings, covering all major real estate subsectors including modern REITs (data centers, cell towers)
- 0.13% expense ratio is low for the REIT category and leverages Vanguard's cost minimization structure
- Very high AUM ($35B+) provides excellent secondary market liquidity for retail and institutional investors
- 0.07% expense ratio is nearly half of VNQ's 0.13%, saving meaningful costs in a sector where returns are often modest
- REIT-only focus (no operating companies) provides purer REIT sector exposure
- Position capping reduces concentration risk from the largest REITs that might otherwise dominate cap-weighted indices
- REITs are highly sensitive to rising interest rates, which both increase borrowing costs and make REIT yields less attractive versus bonds
- Broad coverage includes underperforming legacy retail and office REITs alongside high-growth data center and industrial REITs
- REIT dividends are typically taxed as ordinary income (not qualified dividends), reducing after-tax yield for investors in high tax brackets
- Smaller AUM ($7B vs VNQ's $35B) results in wider bid-ask spreads and less institutional liquidity than VNQ
- Lower brand recognition and trading volume may make it less suitable for investors who need to transact frequently
- Same interest rate sensitivity as all REIT ETFs — rising rates hurt REIT valuations regardless of which REIT ETF is held
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