SCHH Profile
The Schwab U.S. REIT ETF is designed to offer investors exposure to the performance of real estate investment trusts (REITs) that focus on owning and operating income-generating real estate properties. The fund tracks an index that encompasses a broad range of equity REITs, which invest primarily in physical real estate assets such as office buildings, shopping centers, and residential complexes. By excluding mortgage REITs and hybrid REITs, the ETF concentrates on companies that derive their income from leasing properties rather than from mortgage investments.
The underlying index specifically omits mortgage REITs, which are involved in lending money to real estate owners and operators or investing in mortgage-backed securities. It also excludes hybrid REITs, which engage in both equity and mortgage investing. This approach ensures that the ETF provides targeted exposure to REITs that focus on direct ownership and management of real estate assets, reflecting their operational and income-generating activities in the real estate sector.
To achieve its investment objective, the Schwab U.S. REIT ETF commits to investing at least 90% of its net assets in securities that are included in the index. This policy helps maintain alignment with the indexs focus on equity REITs and provides investors with a concentrated investment in the real estate sector. The fund aims to capture the performance of a diverse range of real estate holdings, representing various property types and geographic regions.
Investors in the Schwab U.S. REIT ETF gain exposure to a broad portfolio of equity REITs, offering a way to invest in real estate without directly owning property. The funds focus on income-generating properties and its exclusion of mortgage and hybrid REITs provides a clear investment strategy for those looking to benefit from the performance of physical real estate assets and the rental income they produce. The ETFs diversified approach within the equity REIT sector helps mitigate risks while targeting potential returns from the real estate market.
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