GET DAILY SIGNALSSCHH vs USRT: Weighing the Edge Between Two Core REIT ETFs
Key Takeaways
- Both SCHH and USRT are low-cost, passively managed exchange-traded funds (ETFs) that track broadly diversified baskets of U.S. equity real estate investment trusts (REITs).
- SCHH tracks the Dow Jones Equity All REIT Capped Index, while USRT tracks the FTSE Nareit Equity REITs 40 Act Capped Index.
- Both funds exclude mortgage REITs and focus on property-owning REITs, producing heavily overlapping portfolios and similar sector exposure.
- Cost is nearly identical but not equal: SCHH carries a 0.07% expense ratio versus 0.08% for USRT.
- SCHH is significantly larger in assets under management (AUM) and trading volume, translating into deeper secondary-market liquidity.
- Tickeron AI Verdict: SCHH — on the strength of lower cost and superior liquidity within an otherwise near-identical exposure profile.
Why This Comparison Matters
At first glance, SCHH and USRT look interchangeable. Both deliver diversified exposure to U.S. equity REITs and appeal to investors seeking real estate income and growth without direct property ownership. Still, even modest differences in cost or liquidity can add up over a long holding period. These funds compete head-to-head on nearly identical exposures, so the choice comes down to efficiency rather than distinct strategies. I checked the latest holdings overlap using Tickeron’s AI Screener to confirm how closely they align.
A Closer Look at Schwab U.S. REIT ETF (SCHH)
SCHH is a passively managed fund that tracks the Dow Jones Equity All REIT Capped Index. The benchmark covers U.S. equity REITs and excludes mortgage and hybrid vehicles. The fund typically holds 120 to 125 positions, with a tilt toward large-cap names such as WELL (Welltower), PLD (Prologis), EQIX (Equinix), SPG (Simon Property Group), DLR (Digital Realty Trust), AMT (American Tower), and O (Realty Income).
Sector weights span health care, industrial, data center, telecom tower, retail, residential, and self-storage REITs. The expense ratio stands at 0.07%, and the fund manages roughly $10 billion in assets, supporting strong daily trading volume. It remains a straightforward, cap-weighted passive vehicle with periodic rebalancing.
USRT: The iShares Core U.S. REIT ETF
USRT tracks the FTSE Nareit Equity REITs 40 Act Capped Index and is managed by BlackRock. It generally holds 127 to 136 positions and also excludes mortgage, timber, and infrastructure REITs. Top holdings closely mirror those of SCHH, including WELL, PLD, EQIX, SPG, DLR, PSA (Public Storage), and O.
Sector exposure covers specialized, health care, retail, residential, industrial, and office REITs. The expense ratio is 0.08%, with about $4 billion in AUM, resulting in somewhat lower liquidity than SCHH. Like its peer, USRT is a cap-weighted, unleveraged passive fund that rebalances to its index.
The Real Estate Sector Backdrop
Both ETFs operate within the U.S. listed real estate sector, where interest-rate movements remain the primary macro influence. REIT dividends compete with fixed-income yields, and property values respond to changes in the cost of capital. Recent cycles show that expectations for easier policy have supported real estate equities, while rising rates have weighed on them.
Several secular themes continue to shape the sector. Data center and telecom tower REITs benefit from demand tied to artificial intelligence and cloud growth, while health care REITs gain from demographic shifts. Industrial landlords focus on supply-chain real estate, though office REITs remain a smaller and more challenged segment in both portfolios. These factors affect SCHH and USRT in similar ways, which is why the two funds tend to move in tandem.
Performance and Positioning
Given the near-identical holdings and sector weights, recent performance has been tightly correlated for both ETFs. Shared holdings such as WELL and EQIX drive much of the movement. Any performance gaps stem mainly from the small cost difference and tracking efficiency rather than divergent exposures.
SCHH holds a modest advantage through its lower expense ratio and greater liquidity, which can reduce long-term cost drag and improve execution for larger trades. Volatility profiles are comparable, and neither fund uses leverage or derivatives that would change risk characteristics materially. For most investors, the decision rests on operational efficiency.
One Tool I Rely On for ETF Analysis
When comparing close peers like these, I often turn to Tickeron’s AI Screener to quickly filter holdings overlap, liquidity metrics, and cost differences across similar ETFs. The platform lets me scan thousands of securities with customizable criteria and surface the most efficient vehicles without manual spreadsheets. It has become a regular part of my workflow for refining allocation decisions.
Tickeron AI Verdict
After reviewing structural features, cost, diversification, and liquidity, the edge goes to SCHH. Both funds provide essentially the same sector exposure and trend consistency, yet the lower 0.07% expense ratio, larger AUM, and higher trading volume can translate into modestly better net results and lower execution risk over time. This assessment is based on observable fund characteristics rather than a short-term price prediction.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
Momentum Indicator for SCHH turns positive, indicating new upward trend
SCHH saw its Momentum Indicator move above the 0 level on October 12, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 85 similar instances where the indicator turned positive. In 72 of the 85 cases, the stock moved higher in the following days. The odds of a move higher are at 85%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where SCHH's RSI Indicator exited the oversold zone, 20 of 24 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 83%.
The Moving Average Convergence Divergence (MACD) for SCHH just turned positive on October 09, 2026. Looking at past instances where SCHH's MACD turned positive, the stock continued to rise in 37 of 46 cases over the following month. The odds of a continued upward trend are 80%.
SCHH moved above its 50-day moving average on October 29, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +0.79% 3-day Advance, the price is estimated to grow further. Considering data from situations where SCHH advanced for three days, in 242 of 300 cases, the price rose further within the following month. The odds of a continued upward trend are 81%.
SCHH may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
The 50-day moving average for SCHH moved below the 200-day moving average on October 29, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SCHH declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 83%.
The Aroon Indicator for SCHH entered a downward trend on October 19, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
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