O Or SCHH: Which One Should Investors Choose?

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Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. When investors start out, one question they ask is whether they should choose individual stocks or ...

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height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nO Or SCHH: Which One Should Investors Choose?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-07-25 00:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/o-schh-one-investors-choose-160011736.html><strong>Benzinga</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.\nWhen investors start out, one question they ask is whether they should choose individual stocks or ...</p>\n\n<a href=\"https://finance.yahoo.com/news/o-schh-one-investors-choose-160011736.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4588","symbol_name":"碎股","start_time":0,"source_url":"https://finance.yahoo.com/news/o-schh-one-investors-choose-160011736.html","article_id":"2454808998","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/H4JVp3CxG8Xutza2NuEldw--~B/aD00ODA7dz03MjA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/benzinga_79/22ac252ddf43e12e3e69c85f0b88366b"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2454808998","pubTimestamp":1721836811,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.When investors start out, one question they ask is whether they should choose individual stocks or exchange-traded funds . Once they start diving into the world of dividend stocks and real estate investment trusts , they also need to factor in dividends and whether or not they plan to reinvest them in the same company, use them as income, or reinvest the proceeds elsewhere.In the Reddit \"REITs\" forum, an investor recently asked Redditors to choose between a REIT, Realty Income , and a REIT ETF, the Schwab U.S. REIT ETF . Which is right for an investor may depend on multiple factors, but first, let's meet the candidates.The premise of the Schwab U.S. REIT ETF is simple. It tracks the total return of an index composed of U.S. real estate investment trusts. It doesn’t invest in mortgage or hybrid REITs. It was initiated in 2011 and has a modest expense ratio of 0.07%. It pays quarterly, usi","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4588":"碎股","BK4550":"红杉资本持仓","PLD":"安博","DLR":"数字房地产信托公司","BK4084":"特种房地产投资信托","BK4231":"零售房地产信托","BK4222":"数据中心房地产信托","BK4581":"高盛持仓","BK4171":"工业房地产投资信托","BK4219":"电信塔房地产信托","AMT":"美国电塔","O":"Realty Income Corp","SPG":"西蒙地产","BK4224":"工业房地产信托","BK4529":"IDC概念","BK4554":"元宇宙及AR概念","BK4225":"医疗保健房地产信托","BK4567":"ESG概念","ISBC":"投资者银行","WELL":"WELLTOWER OP LLC","BK4585":"ETF&股票定投概念","BK4534":"瑞士信贷持仓","EQIX":"易昆尼克斯","BK4203":"医疗保健房地产投资信托","BK4566":"资本集团","CFA":"VictoryShares US 500 Volatility Wtd ETF","BK4080":"零售业房地产投资信托","BK4211":"区域性银行","FDN":"First Trust Dow Jones Internet I","SCHH":"Schwab U.S. REIT ETF"},"translate_title":"O或SCHH：投资者应该选择哪一个？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DLR":1,"WELL":1,"SPG":1,"SCHH":1,"PLD":1,"ISBC":1,"EQIX":1,"AMT":1,"O":0.9,"FDN":0.9,"CFA":0.9,"US10Y.BOND":0.63,"US7Y.BOND":0.63,"US6M.BOND":0.63,"US5Y.BOND":0.63,"US3Y.BOND":0.63,"US30Y.BOND":0.63,"US2Y.BOND":0.63,"US12M.BOND":0.63,"US912797GK78.BOND":0.6,"US912797GL51.BOND":0.6,"US912797GW17.BOND":0.6,"US912797HE00.BOND":0.6},"content_text":"Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.\nWhen investors start out, one question they ask is whether they should choose individual stocks or exchange-traded funds (ETFs). Once they start diving into the world of dividend stocks and real estate investment trusts (REITs), they also need to factor in dividends and whether or not they plan to reinvest them in the same company, use them as income, or reinvest the proceeds elsewhere. \nIn the Reddit \"REITs\" forum, an investor recently asked Redditors to choose between a REIT, Realty Income (NYSE:O), and a REIT ETF, the Schwab U.S. REIT ETF (SCHH). Which is right for an investor may depend on multiple factors, but first, let's meet the candidates. \nTrending: Mark Cuban believes “the next wave of revenue generation is around real estate and entertainment” — this new real estate fund allows you to get started with just $100.\nThe Dividend Aristocrat That Pays You Monthly\nRealty Income markets itself to investors as the monthly dividend company. It's not the only REIT to pay a monthly dividend, but that 12-times-a-year payout is one reason this company is a perennial favorite. In fact, July 2024 marks its 649th consecutive month of dividend increases. Realty Income has a forward dividend yield of 5.48% and an annual dividend of $3.16. It is a Dividend Aristocrat with a 30-year history of rising dividends. Realty Income's bread and butter is non-discretionary and service-oriented retail, with tenants like Walmart, 7-Eleven, and CVS pharmacies. These properties are triple-net leases, meaning that the tenant pays for a share of the property taxes, maintenance, and insurance. These types of properties make up 73% of its portfolio. It brings in around $4.8 billion in annualized base rent. It grew its convenience portfolio by acquiring Spirit Realty for $9.3 billion.\nRealty Income has been exploring other areas. In 2022, it purchased the Wynn Resort Encore Boston Resort and Casino for $1.7 billion in a sale-leaseback transaction, and in 2023, it invested in The Bellagio Las Vegas. Data centers are another area of expansion. It partnered with Digital Realty Trust (NYSE:DLR) to build two data centers in Northern Virginia. These are a relatively small part of the Realty Income story, but they do give the company a level of diversification that it did not have several years ago. It also has a $10.4 billion European portfolio. \nOne Redditor favoring Realty Income said, \"I love monthly. But that's because I'm a simple man. I just accumulate O when it's a bargain and leave it when the market runs.\" \nKeeping It Simple With SCHH\nThe premise of the Schwab U.S. REIT ETF is simple. It tracks the total return of an index composed of U.S. real estate investment trusts. It doesn’t invest in mortgage or hybrid REITs. It was initiated in 2011 and has a modest expense ratio of 0.07%. It pays quarterly, using the Dow Jones Equity All REIT Capped Index as a benchmark. There are currently 119 securities in this ETF, so instantly, you get broader exposure. Its annualized return since inception is 6.46% in market price returns as of March 31, 2024. It pays quarterly dividends with a yield of approximately 3.92%.\nIf you buy SCHH, you get some Realty Income bundled inside as one of its top ten holdings. Others at the top of the list include warehouse REIT Prologis (NYSE:PLD), tower REIT American Tower Corporation (NYSE:AMT), data center REIT Equinix (NASDAQ:EQIX), healthcare REIT Welltower (NYSE:WELL), and mall REIT Simon Property Group (NYSE:SPG). The Schwab U.S. REIT ETF has the highest exposure to retail and industrial REITs. \nOne Redditor who favored SCHH said, \"Given only SCHH and O, I would go with SCHH. If you go with individual REITs, I recommend you pick at least 5-10 stocks from different sectors (infrastructure/retail/industrials/residential).\"\nThese aren't the only options when choosing between a REIT and a REIT ETF. You can decide to build a portfolio of individual REITs or even a portfolio of different REIT ETFs. In that case, you would want to check each prospectus carefully because there will likely be a lot of overlap. Let's review the pros and cons of a single stock option versus an ETF. \nInvestor alert: Triple-net properties can put a check in your pocket every quarter—a can’t-miss opportunity for accredited investors.\nBenefits of Buying a Single REIT\n\nTargeted Exposure: Investing in a single REIT allows you to target a specific sector within real estate or a geographic location you are interested in.\nFocused Investment: If the chosen REIT performs exceptionally well, its returns can be higher than those of a diversified REIT ETF.\nEase of Understanding: If you are tracking only a single REIT, you need to understand only one business and its performance. With a single REIT, you can better understand the specific properties, management team, and business strategy. Tracking and analyzing the financial performance and news related to a single REIT is easier.\n\nBenefits of Buying a REIT ETF\n\nDiversification: This is one of the most significant advantages of choosing an ETF. A REIT ETF provides exposure to a diversified portfolio of REITs, which can mitigate the risk associated with individual REITs. You aren’t tied to the fate of one company or one sector. \nSimplicity: Investing in a REIT ETF is straightforward and doesn't require extensive research on individual REITs. You choose the ETF, and it selects the companies and rebalances them to ensure the portfolio stays aligned with its investment strategy. Many REIT ETFs track indexes, offering a passive investment strategy with lower fees than actively managed funds.\nIncome Stability: REIT ETFs typically provide regular dividend income, which can be more stable due to the fund’s diversified nature.\n\nOne deciding factor for investors may be how much time you want to invest in learning about REITs. For some investors, REITs are the most boring part of their portfolio, a place to park money and watch it slowly accumulate, gathering dividends. Other investors may want to study real estate and determine which sectors and companies will pay off over time. Regardless of your path, today's investor has plenty of options. \nThere Are Better High-Yield Opportunities\nThe current high-interest-rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through dividend stocks... Certain private market real estate investments are giving retail investors the opportunity to capitalize on these high-yield opportunities and Benzinga has identified some of the most attractive options for you to consider. \nFor instance, Basecamp Alpine Notes offers a target APY of 9% with a term of only three months, making it a powerful short-term cash management tool with incredible flexibility. EquityMultiple has issued 61 Alpine Notes Series and has met all payment and funding obligations with no missed or late interest payments. With a low minimum investment of just $1,000, Basecamp Alpine Notes makes it easier than ever to start building a high-yield portfolio. \nDon't miss out on this opportunity to take advantage of high-yield investments while rates are high. Check out Benzinga's favorite high-yield offerings. \n© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.\nThis article O Or SCHH: Which One Should Investors Choose? originally appeared on Benzinga.com","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":1,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2454808998"}