SCHH 📈 Schwab U.S. REIT - Overview

The Schwab U.S. REIT ETF, listed on NYSE ARCA under the ticker SCHH, is designed to track a specific index that focuses on equity REITs, which primarily own and operate income-generating real estate properties. This distinction is crucial because the index deliberately excludes mortgage REITs, entities that derive their income from lending to real estate owners or operators, either directly or through mortgage-backed securities. Additionally, hybrid REITs, which combine elements of both equity and mortgage investing, are also not included in the index. By doing so, the ETF provides investors with a targeted exposure to the U.S. real estate market, minus the complexities and risks associated with mortgage financing.

One of the key investment policies of the Schwab U.S. REIT ETF is that it will invest at least 90% of its net assets in securities that are part of the tracked index under normal market conditions. This commitment ensures that the fund remains closely aligned with its underlying index, thereby providing investors with the intended exposure to the U.S. real estate sector. The ETF is managed by Charles Schwab Investment Management, Inc., and detailed information about the fund, including its holdings, performance, and other relevant data, can be found on the company's website at http://www.schwabfunds.com. As a U.S.-domiciled ETF with the ISIN US8085248479, it falls under the real estate category of ETFs, offering a straightforward way for investors to gain exposure to the U.S. real estate investment trust market.

Given its structure and investment objectives, the Schwab U.S. REIT ETF is categorized as a real estate ETF, aiming to replicate the performance of its respective index. By concentrating on equity REITs and avoiding the mortgage segment, the fund caters to investors seeking to capitalize on the potential of the U.S. real estate market, particularly those interested in the rental income and property appreciation aspects of real estate investing. The fund's domicile in the United States and its listing on a major exchange make it accessible to a wide range of investors, both institutional and individual, looking to diversify their portfolios with U.S. real estate assets.