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ETF Overlap Tool: VNQ vs SCHH

Compare portfolio holdings overlap, real estate sector concentration, and expense ratio differences between Vanguard Real Estate Index Fund ETF Shares (VNQ) and Schwab U.S. REIT ETF (SCHH).

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ETF Overlap Overview & Key Metrics
VOO (503 Total) QQQ (101 Total) ONLY IN VNQ 5 Stocks (53.6% Weight) MODERATE HOLDINGS OVERLAP 45 Shared Stocks (90.0%) 67.3% Weight Duplication ONLY IN SCHH 5 Stocks (53.6% Weight)
Overlap by Weight
67.3%
⚡ High Real Estate REIT Overlap
Expense Ratio Gap
0.12% vs 0.07%
SCHH is 1.7x cheaper than VNQ
Unique Holdings
419 vs 17 Stocks
~53.6% Weight Difference
Sector Allocation Breakdown
Real Estate
99.45%
Communication Services
0.4%
Energy
0.13%
Industrials
0.02%
Real Estate
100.0%

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Stock Holdings Breakdown (VNQ vs SCHH)

73 Assets
Asset Sector VNQ Weight SCHH Weight Combined (50/50) Status
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Showing 1 to 20 of 73 holdings

VNQ vs SCHH: Portfolio Overlap & Investment Strategy Guide

When evaluating Vanguard Real Estate Index Fund ETF Shares (VNQ) versus Schwab U.S. REIT ETF (SCHH), investors are comparing two distinct ETF strategies. VNQ holds 0 total assets while SCHH contains 0 total assets. Across both portfolios, they share 45 common stock holdings, representing a 67.3% portfolio overlap by weight.

Sector Concentration & Shared Stock Holdings

While both funds invest in equity markets, their internal sector allocations create meaningful differences in portfolio performance and volatility:

  • Primary Sector Focus: VNQ concentrates its largest allocation in Real Estate (99.45%), whereas SCHH allocates its highest weighting to Real Estate (100.0%).
  • Top Shared Holdings: Key overlapping stocks held in both funds include Welltower Inc (WELL), Prologis, Inc (PLD), Equinix, Inc. (REIT) (EQIX), Digital Realty Trust, Inc (DLR).
  • Holdings Distribution: VNQ features 0 holdings compared to 0 holdings in SCHH, affecting single-stock concentration risk.

Strategic Portfolio Insight: High Overlap & Concentration Risk

Holding both VNQ and SCHH results in significant portfolio duplication with a 67.3% weight overlap. Because a major portion of performance is driven by identical holdings across both funds, owning both simultaneously creates high redundancy without providing meaningful diversification.

Expense Ratio Comparison & Performance: VNQ vs SCHH

Beyond portfolio holdings overlap, fund management fees, dividend yields, and sector diversification play a vital role in long-term compounding returns:

1. Annual Management Fee Impact

SCHH charges a lower expense ratio of 0.07% compared to VNQ at 0.12%. SCHH is 1.7x cheaper, saving long-term investors approximately $5 per year for every $100,000 invested.

2. Volatility, Risk & Long-Term Growth Potential

VNQ and SCHH react differently to changing interest rates, market cycles, and sector rotations. Diversifying across funds with different underlying indexes helps reduce portfolio drawdown risk during broader market corrections.

Snowball Portfolio Lab Insight

Want to analyze how combining VNQ and SCHH impacts your total portfolio yield, sector distribution, and historical dividend income? Model your custom asset allocation in the Snowball Analytics Portfolio Lab.

Frequently Asked Questions: VNQ vs SCHH ETF Overlap
What is the portfolio overlap percentage between VNQ and SCHH?
Vanguard Real Estate Index Fund ETF Shares (VNQ) and Schwab U.S. REIT ETF (SCHH) have a 67.3% overlap by weight and share 45 identical stock holdings. VNQ holds 0 total assets while SCHH holds 0 total assets.
What is the main difference between VNQ and SCHH?
The main difference between VNQ and SCHH lies in sector allocation, expense ratio, and portfolio breadth:
  • Sector Focus: VNQ's largest sector is Real Estate (99.45%), whereas SCHH's largest sector is Real Estate (100.0%).
  • Expense Ratio: SCHH has an expense ratio of 0.07%, while VNQ charges 0.12%. SCHH is 1.7x cheaper than VNQ.
  • Portfolio Breadth: VNQ holds 0 total stocks vs SCHH's 0 stocks.
Is it good to hold both VNQ and SCHH in the same portfolio?
Holding both VNQ and SCHH results in a 67.3% portfolio weight overlap across 45 common holdings. Because VNQ and SCHH have a high portfolio weight overlap of 67.3%, holding both creates significant redundancy. Investors often select one primary fund as a core asset rather than duplicating holdings.
Which ETF has lower management expense fees: VNQ or SCHH?
SCHH has an expense ratio of 0.07%, while VNQ charges 0.12%. SCHH is 1.7x cheaper than VNQ.
Which ETF is better for long-term investors: VNQ or SCHH?
The ideal choice depends on your investment strategy: VNQ (0.12% expense ratio) provides exposure to Vanguard Real Estate Index Fund ETF Shares, while SCHH (0.07% expense ratio) offers exposure to Schwab U.S. REIT ETF. Comparing sector concentration and historical volatility helps align your choice with long-term goals.
Do VNQ and SCHH pay dividends?
Yes, both VNQ and SCHH pay quarterly dividend distributions to shareholders derived from underlying dividend payments of portfolio companies.