Schwab U.S. REIT ETF vs Xtrackers International Real Estate ETF: Which Real Estate ETF Is the Better Buy in 2026?
Key PointsThe Schwab U.S. REIT ETF offers domestic real estate exposure with a lower expense ratio and higher liquidity than its international counterpart.
In the realm of real estate investment trusts (REITs), two prominent funds are the Schwab U.S. REIT ETF (SCHH) and the Xtrackers International Real Estate ETF (HAUZ). The former provides access to the domestic U.S. real estate market, while the latter offers exposure to property trends in developed and emerging economies beyond the United States.
REITs present a distinct blend of income generation and potential long-term capital gains. While many investors concentrate on domestic properties, exploring international opportunities may yield diversification benefits and engagement with diverse economic cycles. This assessment delves into a substantial U.S.-centric fund and a comprehensive international counterpart to determine which aligns best with individual portfolio requirements.
Beta, a metric that gauges price volatility in relation to the S&P 500, is calculated from monthly returns spanning the duration of the fund's history, up to five years. The 1-year return signifies the total return accrued over a 12-month period trailing the present date. Dividend yield represents the distribution yield derived from the trailing 12 months.
To gain a clearer perspective, it is crucial to compare the two ETFs based on their respective betas, 1-year returns, and dividend yields. This comparison will aid in identifying which of these two real estate-focused investment vehicles may be the more suitable choice for investors seeking exposure to the real estate sector in 2026.
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