Schwab U.S. REIT ETF vs Xtrackers International Real Estate ETF: Which Real Estate ETF Is the Better Buy in 2026?
Key Points
The Schwab U.S. REIT ETF offers domestic real estate exposure with a lower expense ratio and higher liquidity than its international counterpart.
The Xtrackers International Real Estate ETF provides exposure to non-U.S. holdings and a higher trailing-12-month dividend yield.
The Schwab fund has significantly outperformed over the past year, while the Xtrackers fund saw negative total returns.
- 10 stocks we like better than Schwab Strategic Trust - Schwab U.s. REIT ETF ›
The Schwab U.S. REIT ETF (NYSEMKT:SCHH) provides a low-cost entry into the domestic real estate market, while Xtrackers International Real Estate ETF (NYSEMKT:HAUZ) captures property trends across developed and emerging economies outside the U.S.
Real estate investment trusts (REITs) can offer a unique combination of income and long-term capital appreciation. While many investors focus on familiar domestic properties, looking abroad may offer additional diversification and different economic cycles. This analysis compares a massive U.S.-focused fund with a broad international alternative to see which fits a specific portfolio need.
Snapshot (cost & size)
| Metric | HAUZ | SCHH |
|---|---|---|
| Issuer | Xtrackers | Schwab |
| Share price | $20.91 (as of 2026-10-08) | $21.89 (as of 2026-10-08) |
| Expense ratio | 0.10% | 0.07% |
| 1-yr total return (as of 2026-10-08) | (7.2%) | 6.53% |
| Dividend yield | 3.91% | 3.10% |
| Beta | 1.01 | 0.96 |
| AUM | $1.0 million | $10.6 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The Schwab fund is slightly more affordable with a 0.07% expense ratio. While the Xtrackers fund charges a higher expense ratio of 0.1%, it currently offers a higher payout for income-seeking investors seeking yield outside domestic markets.
Performance & risk comparison
| Metric | HAUZ | SCHH |
|---|---|---|
| Max drawdown (5 yr) | (34.5%) | (33.3%) |
| Growth of $1,000 over 5 years (total return) | $901 | $1,100 |
The Schwab U.S. REIT ETF focuses exclusively on U.S. equity REITs, providing concentrated exposure to sectors such as healthcare, logistics, and data centers. It manages a portfolio of 122 holdings, with significant weight in its largest positions. These positions include Welltower at 10%, Prologis at 8.8%, and Equinix at 4.8%. The fund was launched in 2011. Schwab U.S. REIT ETF has paid $0.68 per share over the trailing 12 months, which, on its recent ~$21.85 share price, works out to a 3.1% yield.
The Xtrackers International Real Estate ETF offers a contrast by excluding U.S. property and diversifying across developed and emerging markets. It tracks the iSTOXX Developed and Emerging Markets ex USA PK VN Real Estate Index and holds a much larger basket of 411 securities. Its sector allocation is roughly 96% Real Estate, with 1% each in Industrials and Communication Services. Its largest positions include Goodman Group at 4.3%, Mitsubishi Estate at 3%, and Mitsui Fudosan at 2.8%. The fund was launched in 2013. Xtrackers International Real Estate ETF has paid $0.82 per share over the trailing 12 months, which, on its recent ~$20.85 share price, works out to a 3.9% yield.
For more guidance on ETF investing, check out the full guide at this link.
Which looks like the better buy?
The rise in interest rates over the last five years provides a good test for a real estate fund. Schwab owns quality domestic REITs, which have provided greater ballast and resilience. This makes it the better buy with interest rate uncertainty still weighing on the markets.
The Xtrackers offers a higher yield, but Schwab checks every other box for a long-term investor. It has a lower expense ratio, better one-year and five-year total returns, and achieved higher returns with lower volatility.
Overall, SCHH has proven to be the more solid real estate fund to hold across market cycles, making it the better buy in 2026.
Should you buy stock in Schwab Strategic Trust - Schwab U.s. REIT ETF right now?
Before you buy stock in Schwab Strategic Trust - Schwab U.s. REIT ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Schwab Strategic Trust - Schwab U.s. REIT ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $385,972!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,416,196!*
Now, it’s worth noting Stock Advisor’s total average return is 951% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of October 10, 2026.
John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Equinix and Prologis. The Motley Fool has a disclosure policy.
Recommended Articles
