SCHH: Bottom-Feeding With Real Estate


  • The market as a whole performed poorly last year, this is well known. What is surprising is how much worse Real Estate did by comparison.
  • SCHH was part of this drawdown. The reality is that rapidly rising rates can hurt the Real Estate sector, but its long-term relation with higher rates is actually mixed.
  • This fund is an easy way for retail investors to invest in this space. While many investors likely own their own home, investing in REITs offers commercial exposure.
  • I think the performance from both 2020 and 2022 were a bit of an anomaly and that Real Estate will remain a more stable sector going forward.
  • This idea was discussed in more depth with members of my private investing community, CEF/ETF Income Laboratory. Learn More »

Aerial panorama of New York City skyscrapers at dusk


Main Thesis & Background

The purpose of this article is to evaluate the Schwab U.S. Dividend REIT ETF (NYSEARCA:SCHH) as an investment option at its current market price. This is a broad sector ETF, with a stated

Fund Performance

Fund Performance (Seeking Alpha)

2022 Performance (Real Estate vs S&P 500)

2022 Performance (Real Estate vs S&P 500) (S&P Global)

SCHH's Top Holdings

SCHH's Top Holdings (Charles Schwab)

Office Occupancy Rates Since Start Of Pandemic

Office Occupancy Rates Since Start Of Pandemic (Kastle Systems)

Real Estate Deals

Real Estate Deals (S&P Global)

Please consider the Income Lab.

This article was written by

Dividend Seeker profile picture
CEF/ETF income and arbitrage strategies, 8%+ portfolio yields

I've been an investor since 2008, which was an invaluable and humbling experience. This is central to my strategy of looking for quality, value, and diversification - generally staying away from risky/over-hyped ideas. I won't pump any investment nor discuss a topic I don't genuinely follow / research. In that spirit, I list my portfolio here for transparency.  

I'm a native New Yorker and I work for a major U.S. bank. I escaped to North Carolina for graduate school and I don't see myself ever leaving. I was a D1 athlete in college (men's tennis) and compete competitively to this day. My Bachelor's and MBA are both in Finance.

Broad market: VOO; QQQ; DIA, RSP



Dividends: DGRO; SDY, SCHD

Municipals/Debt Funds: NEA, PCK, VCV, PML, BGT, PDO


Cash position: 25%

Disclosure: I/we have a beneficial long position in the shares of MAA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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