REET vs SCHD
REET vs SCHD
iShares Global REIT ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. REET offers more diversification with 322 holdings.
Side-by-Side Comparison
| Metric | REET | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.14% | 0.06% | |
| AUM | $5.2B | $103.7B | |
| Dividend Yield | 3.36% | 3.31% | |
| Holdings | 352 | 104 | |
| YTD Return | +14.19% | +24.26% | |
| 1Y Return | +17.80% | +31.38% | |
| 3Y Return (annualized) | +10.55% | +15.08% | |
| 5Y Return (annualized) | +2.79% | +9.72% | |
| Volatility (annualized) | 16.9% | 13.6% | |
| Max Drawdown | -44.6% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Jul 8, 2014 | Oct 20, 2011 |
REET vs SCHD Performance
iShares Global REIT ETF (REET) is a ETF from iShares by BlackRock (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year REET returned +17.80% while SCHD returned +31.38%. Year to date, REET is up 14.19% versus a gain of 24.26% for SCHD.
Over three years, REET compounded at +10.55% per year against +15.08% for SCHD; over five years the annualized figures are +2.79% and +9.72% respectively. Across the full 12-year window we track, SCHD has the edge at +11.39% annualized vs +2.44%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
REET has been the more volatile fund, with annualized monthly volatility of 16.9% compared with 13.6% for SCHD. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -44.6% for REET and -33.4% for SCHD. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
REET charges 0.14% per year while SCHD charges 0.06%. On a $10,000 position that is $14 vs $6 annually, a gap of $8 per year that compounds over a long holding period. On income, REET currently yields 3.36% against 3.31% for SCHD.
Holdings Overlap
REET and SCHD share 0 holdings out of 422 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, REET or SCHD?
REET has an expense ratio of 0.14% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $8 per year of difference.
Which performed better, REET or SCHD?
Over the past year REET returned +17.80% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (12 years), REET annualized +2.44% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, REET or SCHD?
REET has been the more volatile fund at 16.9% annualized versus 13.6% for SCHD. Worst drawdown: REET -44.6% vs SCHD -33.4%.
Should I hold both REET and SCHD?
REET and SCHD have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between REET and SCHD?
REET and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 422 unique securities.
Which pays a higher dividend, REET or SCHD?
REET yields 3.36% while SCHD yields 3.31%, so REET currently pays the higher dividend yield.
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