ETF Versus

IYR vs SCHH

iShares U.S. Real Estate ETF vs Schwab U.S. REIT ETF

Last updated: 2026-04-02

IYR iShares

iShares U.S. Real Estate ETF (IYR) is an exchange-traded fund issued by iShares that provides exposure to U.S. real estate investment trusts (REITs) and real estate companies. It charges an above-average expense ratio of 0.38%. The fund offers a moderate dividend yield of 2.37%. Launched in 2000, the fund has a 26-year track record.

AUM: $3.9B ER: 0.38% Yield: 2.37% Since: Jun 12, 2000

Schwab U.S. REIT ETF (SCHH) is an exchange-traded fund that provides exposure to U.S. real estate investment trusts (REITs) and real estate companies. It charges a low expense ratio of 0.07%. The fund offers an attractive dividend yield of 3.02%. Launched in 2011, the fund has a 15-year track record.

AUM: $9.0B ER: 0.07% Yield: 3.02% Since: Jan 13, 2011

Quick Verdict

SCHH is significantly cheaper at 0.07% vs 0.38% expense ratio, saving you approximately $608 per $10,000 invested over 10 years. SCHH has edged ahead over the past year (0.2% vs -1.0%). Income investors may prefer SCHH for its higher yield (3.0% vs 2.4%).

Key Metrics

Metric IYR SCHH
Expense Ratio 0.38% 0.07%
Dividend Yield 2.4% 3.0%
Fund Family iShares N/A
Category US Real Estate US Real Estate

Performance Chart

Indexed to 100 at start (5-year comparison)

75 85 95 105 115 125 2021-04 2022-06 2023-09 2024-12 2026-04
IYR +1.0%
SCHH +2.8%

Performance Comparison

Period IYR SCHH Difference
1 Month -6.56% -6.70% +0.14%
3 Months +0.95% +3.20% -2.25%
6 Months -2.23% +0.14% -2.37%
YTD +0.95% +3.20% -2.25%
1 Year -0.97% +0.23% -1.20%
3 Years +12.64% +11.64% +1.00%
5 Years +0.99% +2.81% -1.82%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period IYR Fees SCHH Fees You Save
$10.000 10 years $748 $140 $608
$10.000 20 years $3.173 $600 $2.572
$10.000 30 years $10.097 $1.938 $8.159
$50.000 10 years $3.739 $698 $3.041
$50.000 30 years $50.486 $9.692 $40.794
$100.000 30 years $100.972 $19.383 $81.588

Risk Metrics

Based on 5 years of daily returns

Metric IYR SCHH
Annualized Volatility 18.8% 18.8%
Max Drawdown -36.9% -36.4%
Sharpe Ratio -0.13 -0.12

Dividend Comparison

Metric IYR SCHH
Annual Dividend (per share) $2.25 $0.65
Dividend Yield 2.37% 3.02%
Distribution Frequency Quarterly Quarterly

Top Holdings

9 of top 10 holdings overlap (90% overlap in top holdings)

IYR Top Holdings

NameWeight
Welltower Inc.WELL10.03%
Prologis, Inc.PLD9.11%
Equinix, Inc.EQIX4.68%
Digital Realty Trust, Inc.DLR4.59%
Simon Property Group, Inc.SPG4.50%
Realty Income CorporationO4.44%
American Tower CorporationAMT4.39%
Public StoragePSA3.40%
Ventas, Inc.VTR3.15%
CBRE Group, Inc.CBRE3.10%

SCHH Top Holdings

NameWeight
Welltower Inc.WELL10.05%
Prologis, Inc.PLD8.81%
Equinix, Inc.EQIX4.82%
Digital Realty Trust, Inc.DLR4.40%
Realty Income CorporationO4.33%
American Tower CorporationAMT4.31%
Simon Property Group, Inc.SPG4.31%
Public StoragePSA3.26%
Ventas, Inc.VTR3.02%
Crown Castle Inc.CCI2.66%

Which One Should You Choose?

Choose SCHH if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Choose SCHH if...

you prioritize dividend income and want higher regular distributions from your portfolio.

Either works if...

you just need broad us real estate exposure. Both are solid options — pick whichever your brokerage offers commission-free.

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