SCHH vs HAUZ: Best Real Estate ETF For 2026?

Navigating the real estate market requires sharp strategic vision, especially when looking at investment vehicles like exchange-traded funds. A recent financial comparison dives deep into the Schwab U.S. REIT ETF (SCHH) and the Xtrackers International Real Estate ETF (HAUZ). Evaluating these funds helps investors understand where to park their capital for optimal long-term growth.

As we analyze market trends for the coming year, choosing between domestic stability and international exposure becomes critical. Let us examine how these two prominent real estate funds stack up against each other across key performance metrics.

Understanding the Core ETF Strategies

To make an informed choice, you must look at how each fund constructs its portfolio and targets specific geographic regions. Real estate investments are deeply tied to regional economic health and local property dynamics.

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SCHH: Domestic Focus and Scale

SCHH focuses exclusively on domestic equity real estate investment trusts, holding a robust basket of 122 securities. This localized strategy provides a clear view of American property sectors without foreign currency risks.

Investors often look at home design and domestic commercial trends to gauge the underlying strength of these holdings. With a massive asset base of $10.6 billion, SCHH commands significant liquidity and market trust.

HAUZ: International Diversification

In contrast, HAUZ completely excludes U.S. properties to spread its bets across 411 international securities. This broad geographic spread attempts to capture overseas growth opportunities.

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Key Financial Metrics and Performance

Beyond asset allocation, hard numbers dictate which fund ultimately wins the comparison for long-term investors. Performance history and fee structures paint a telling picture of resilience.

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SCHH features a lean expense ratio of just 0.07%, beating HAUZ’s slightly higher fee of 0.10%. Furthermore, SCHH delivered a positive one-year total return of 6.53%, while HAUZ lagged behind with a negative return of 7.2%.

Over a five-year horizon, a $1,000 investment in SCHH grew to $1,100, whereas HAUZ dropped to $901. SCHH also showed lower market volatility with a beta of 0.96, compared to HAUZ’s 1.01.

Dividends and Final Verdict

Income-seeking investors might initially notice that HAUZ offers a higher trailing-12-month dividend yield of 3.91%. SCHH counters this with a respectable, though lower, dividend yield of 3.10%.

Despite the yield difference, SCHH outperforms its international counterpart across nearly every other critical financial category. Amid ongoing interest rate uncertainties, Schwab’s U.S. fund emerges as the superior long-term buy.

 
Here is the source article for this story: Schwab U.S. REIT ETF vs Xtrackers International Real Estate ETF: Which Real Estate ETF Is the Better Buy in 2026?