VNQ vs SCHH: Returns, Drawdowns and Dividends Since 2016
VNQ (Vanguard Real Estate ETF) and SCHH (Schwab U.S. REIT ETF) moved almost in lockstep: their daily returns had a correlation of 0.991, where 1 would mean identical. VNQ came out ahead, returning 6.1% a year with dividends reinvested from January 2016 to November 2026, against 4.8% for SCHH.
Bought on any day and held five years, VNQ finished ahead 80% of the time. Both fell about 43% at their worst, in March 2020.
| Measure | VNQ | SCHH |
|---|---|---|
| Annual return | 6.1% | 4.8% |
| $10,000 grew to | $19,024 | $16,598 |
| Worst decline | −42.4%Mar 2020 | −44.2%Mar 2020 |
| Volatility Volatility How much the fund's daily returns swing: their standard deviation over this period, annualized with the square root of 252 trading days. | 20.4% | 20.7% |
| Sharpe ratio Sharpe ratio Return above T-bills for each unit of risk: daily returns minus the T-bill ETF BIL, averaged, divided by their standard deviation and annualized. Higher is better. T-bill funds show none. Sharpe ratio calculator | 0.29 | 0.23 |
| 12-month yield 12-month yield Cash dividends with ex-dividend dates in the past 12 months, divided by the latest closing price. | 3.5% | 2.8% |
| Best year | +40.5%2021 | +41.1%2021 |
| Worst year | −26.2%2022 | −25.0%2022 |
| Correlation between them Correlation How closely the two funds' daily returns moved together over this period: 1 means identical every day, 0 means no relation. | 0.991 | |
VNQ: Vanguard Real Estate ETFSCHH: Schwab U.S. REIT ETF
Jan 4, 2016 to Nov 4, 2026, dividends reinvested.
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Worst declines
VNQ fell 42.4% from Feb 21, 2020 to Mar 23, 2020 and was back at its high on Apr 15, 2021. SCHH fell 44.2% from Feb 21, 2020 to Mar 23, 2020 and was back at its high on Jun 10, 2021.
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Year by year
VNQ was ahead in 6 of the 11 calendar years.
| Year | VNQ | SCHH | Ahead (pts) |
|---|---|---|---|
| 2026 (to Nov 4) | +14.0% | +17.2% | SCHH+3.2 |
| 2025 | +3.3% | +2.2% | VNQ+1.0 |
| 2024 | +4.8% | +5.0% | SCHH+0.2 |
| 2023 | +11.8% | +11.2% | VNQ+0.6 |
| 2022 | −26.2% | −25.0% | SCHH+1.2 |
| 2021 | +40.5% | +41.1% | SCHH+0.5 |
| 2020 | −4.7% | −14.8% | VNQ+10.1 |
| 2019 | +28.9% | +22.9% | VNQ+6.0 |
| 2018 | −6.0% | −4.2% | SCHH+1.8 |
| 2017 | +4.9% | +3.7% | VNQ+1.2 |
| 2016 (from Jan 4) | +9.9% | +7.9% | VNQ+2.1 |
Held for 1, 3 or 5 years: which came out ahead
Buy on any trading day from Jan 4, 2016, hold for a set time, and see which fund ended higher. The periods overlap, so they show how much the start date mattered, not separate results.
| Hold | Days tested | Ahead more often | Median lead (pts) |
|---|---|---|---|
| 1 year | 2,474 | VNQ57% | +0.3 |
| 3 years | 1,970 | VNQ66% | +1.9 |
| 5 years | 1,466 | VNQ80% | +14.3 |
Median lead is the typical gap in total return across all start dates, in percentage points. The latest 5-year hold starts on Oct 27, 2021.
Dividends
Over the past 12 months VNQ paid 3.5% of its price in dividends and SCHH 2.8%. The returns above already include them, reinvested on each ex-dividend date.
Dividends per share by year
| Year | VNQ | SCHH |
|---|---|---|
| 2026 (to Nov 4) | $2.61 3 payments | $0.46 3 payments |
| 2025 | $3.47 4 payments | $0.64 4 payments |
| 2024 | $3.43 4 payments | $0.68 4 payments |
| 2023 | $3.49 4 payments | $0.67 4 payments |
| 2022 | $3.23 4 payments | $0.49 4 payments |
| 2021 | $2.96 4 payments | $0.40 4 payments |
| 2020 | $3.33 4 payments | $0.48 4 payments |
| 2019 | $3.14 4 payments | $0.66 4 payments |
| 2018 | $3.53 4 payments | $0.71 5 payments |
| 2017 | $3.51 4 payments | $0.46 4 payments |
| 2016 (from Jan 4) | $3.98 4 payments | $0.58 4 payments |
Per share in today's shares (earlier amounts are restated for share splits), by ex-dividend date.
The two funds
- VNQ
- Vanguard Real Estate ETF, an ETF launched Sep 29, 2004. FinLab prices start Jan 4, 2016.
- VNQ price and signal backtests
- SCHH
- Schwab U.S. REIT ETF, an ETF launched Jan 13, 2011. FinLab prices start Jan 4, 2016.
- SCHH price and signal backtests
More comparisons
Source: FinLab U.S. fund prices, Jan 4, 2016 to Nov 4, 2026, the days both funds traded. Returns use prices adjusted for dividends and splits, before taxes; annual return is compounded.
For research and education. Past returns do not guarantee future results, and this is not investment advice.