Vanguard’s VNQ has a 3.7% trailing yield, above Schwab’s SCHH at 2.9%, but its expense ratio is higher: 0.13% versus 0.07%. The Motley Fool author favors VNQ for income and diversification, though SCHH led the one-year and five-year return comparisons.
In the article’s figures, SCHH’s trailing one-year total return was 9.0% as of Sept. 8, 2026, versus 4.6% for VNQ. Over five years, $1,000 grew to $1,101 in SCHH and $1,059 in VNQ; maximum drawdowns were 33.3% and 34.5%, respectively.
VNQ holds 139 stocks and tracks an index covering various property sub-industries; SCHH holds 122 and follows an index composed entirely of U.S. equity REITs. Both funds’ three largest holdings are Welltower, Prologis and Equinix, though their portfolio weights differ.
