iShares Core US REIT ETF USRT

USRT provides diversified real estate exposure across residential, commercial, healthcare, and industrial properties via REITs, with a 0.08% expense ratio equal to VWO's. REITs must distribute 90% of taxable income as dividends, yielding approximately 3.8% in 2026, slightly above SCHD's 3.5% by 0.3 percentage points. Historically, real estate offers returns between bonds and equities with low correlation to both, making it an effective portfolio diversifier that reduces volatility compared to equity-only funds like VWO by roughly 15% over a 20-year horizon. However, REIT dividends are typically ordinary income, making this more suitable for tax-advantaged accounts. Best for diversifying long-term portfolios.