---
title: "REIT ETF Comparison: VNQ vs SCHH vs IYR"
description: "Comparison of major REIT ETFs: VNQ (Vanguard, 0.12%), SCHH (Schwab, 0.07%), IYR (iShares, 0.40%), XLRE, VNQI, and REET, with yield, AUM, and holdings count."
canonical: https://www.getswoopr.com/tables/etf/reit-etf-comparison/
source: "Swoopr Investment: https://www.getswoopr.com"
---

## Direct Answer



> REIT ETFs provide real estate exposure without direct property ownership. Vanguard Real Estate ETF (VNQ, 0.12%) is the largest with over $70 billion in AUM. Schwab U.S. REIT ETF (SCHH, 0.07%) is the cheapest option. iShares U.S. Real Estate ETF (IYR, 0.40%) is the most actively traded but most expensive. REITs must distribute 90% of taxable income, making them high-dividend instruments.








# REIT ETF Comparison: VNQ vs SCHH vs IYR



## REIT ETF Comparison



| Ticker | Name | Expense Ratio | Yield (approx) | AUM | Holdings |
| --- | --- | --- | --- | --- | --- |
| VNQ | Vanguard Real Estate | 0.12% | ~4.0% | ~$70B | ~160 REITs |
| SCHH | Schwab US REIT | 0.07% | ~3.8% | ~$6B | ~120 REITs |
| IYR | iShares US Real Estate | 0.40% | ~3.5% | ~$5B | ~80 REITs + real estate companies |
| XLRE | SPDR S&P Real Estate Sector | 0.09% | ~3.5% | ~$5B | S&P 500 real estate stocks only |
| VNQI | Vanguard Global ex-US Real Estate | 0.12% | ~4.5% | ~$6B | International REITs |
| REET | iShares Global REIT | 0.14% | ~4.2% | ~$3B | Global REITs |



Source: [Vanguard: VNQ ETF](https://investor.vanguard.com/etf/profile/VNQ). Last verified: September 2026.



## Frequently asked questions



Are REITs a good investment?

REITs have historically provided competitive total returns (approximately 10-11% annually, similar to equities) with above-average income (yields of 3-5%). They offer diversification from traditional stocks and bonds, as real estate returns depend on different factors (rental income, property values, interest rates). The main risks: REITs are sensitive to interest rate changes (higher rates reduce REIT valuations and increase their borrowing costs); they have high correlation with equities during market crashes; and they have tax disadvantages in taxable accounts (REIT dividends are ordinary income, not qualified dividends). Most financial plans allocate 5-15% to real estate.



How do REITs make money?

REITs (Real Estate Investment Trusts) own income-producing real estate and must distribute at least 90% of taxable income as dividends. They earn income from: (1) rent from tenants (commercial, residential, industrial, healthcare, data centers, cell towers); (2) mortgage interest (mortgage REITs); (3) capital gains from property sales. REITs come in many flavors: equity REITs own physical properties; mortgage REITs (mREITs) own mortgages and MBS; hybrid REITs own both. Equity REITs dominate VNQ and are more stable; mREITs (like AGNC, NLY) are higher-yield but much more volatile.



What happened to REITs in 2022?

VNQ fell approximately 26% in 2022, worse than the overall S&P 500 (-18%). Rising interest rates hurt REITs on multiple fronts: higher rates make bonds relatively more attractive versus REIT dividend yields (reducing REIT valuations); higher rates increase REIT financing costs on floating-rate debt; and recession fears reduced outlook for commercial real estate. Office REITs were additionally hurt by post-pandemic work-from-home trends reducing office demand. REIT recovery in 2023 was mixed: industrial, residential, and data center REITs recovered faster than office and retail.



## Worked Example: What the Expense Gap and the Yield Mean on $10,000

Take $10,000 held for ten years in a REIT portfolio returning a hypothetical 8% a year before costs. At SCHH's 0.07% expense ratio the ending value is about $21,450; at VNQ's 0.12% it is about $21,351; at IYR's 0.40% it is about $20,803. The cheapest and the most expensive fund in the table end $647 apart on the same assumed gross return, with no difference in what they owned driving it.

The yield column matters most in a taxable account. At VNQ's approximate 4.0% yield, $10,000 pays about $400 a year; because REIT distributions are generally taxed as ordinary income rather than as qualified dividends, a holder at a 24% marginal rate keeps about $304 of it, where the same $400 of qualified dividends at a 15% rate would leave $340. That $36 a year difference on $10,000 is why the FAQ's advice to hold REIT funds in tax-advantaged accounts is about the yield, not the expense ratio. Figures are hypothetical and tax rates vary by filer.





## Cite This Page



If you reference this table in your own work, use the following citation format and add the date you accessed it:



> Swoopr Editorial Team. (2026). *REIT ETF Comparison: VNQ vs SCHH vs IYR*. Swoopr Investment. [https://www.getswoopr.com/tables/etf/reit-etf-comparison/](https://www.getswoopr.com/tables/etf/reit-etf-comparison/)



Check the figures against the primary sources listed under References before you rely on or republish them; the series they come from are revised.







## References



- [Vanguard: VNQ ETF](https://investor.vanguard.com/etf/profile/VNQ)







[Swoopr Editorial Team](https://www.getswoopr.com/authors/swoopr-editorial-team/) produces independent investment education and research content. Our writers and editors do not receive compensation from issuers or asset promoters. For personal holdings disclosure, see our [conflicts-of-interest policy](https://www.getswoopr.com/legal/conflicts-of-interest/).



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