ACWI vs SCHD: Correlation & Overlap
How closely do iShares MSCI ACWI ETF (ACWI) and Schwab US Dividend Equity ETF (SCHD) trade together? Their weekly returns over three years give a correlation of 0.62, which is strong. The two funds also share 5.5% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ACWI and SCHD?
Over the past 3 years, ACWI and SCHD moved with a correlation of 0.62, which is strong. Lately the two have drifted apart, with the 1-year correlation at 0.27 versus 0.62 over 3 years. Over 5 years the correlation is 0.75, and the annualized covariance of weekly returns is 109.8 %².
Among the 119 assets we track against ACWI, SCHD ranks #68 by 3-year correlation. Over the last 12 months SCHD came out ahead by 6.9 percentage points (+22.7% against +29.6%). The relationship is regime-dependent: the rolling one-year correlation swung between 0.29 and 0.89 over the past three years, so this pair behaves very differently depending on the market environment.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
ACWI vs SCHD: side by side
| ACWI (iShares MSCI ACWI ETF) | SCHD (Schwab US Dividend Equity ETF) | |
|---|---|---|
| 1-year return | +22.7% | +29.6% |
| 5-year return | +69.0% | +60.9% |
| Volatility (ann.) | 13.8% | 12.9% |
| Beta vs S&P 500 | 0.92 | 0.52 |
| Max drawdown (3Y) | -16.5% | -16.1% |
| Dividend yield | 1.44% | 3.13% |
| Expense ratio | 0.32% | 0.06% |
| Assets under management | $32.5B | $104.2B |
| Sector / category | ETF · Global | ETF · Dividend |
On the fund side, ACWI sits in the Global Large-Stock Blend category at iShares, with $32.5B under management, 1590 holdings, a 0.32% expense ratio, a 1.44% trailing dividend yield. SCHD, Schwab ETFs's Large Value fund, carries $104.2B under management, 101 holdings, a 0.06% expense ratio, a 3.13% trailing dividend yield.
Portfolio overlap between ACWI and SCHD
The two portfolios are largely distinct: 5.5% of the funds' weight sits in the same underlying holdings (51 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in ACWI | Weight in SCHD |
|---|---|---|
| MRK | 0.38% | 4.92% |
| CVX | 0.35% | 3.89% |
| UNH | 0.35% | 3.92% |
| KO | 0.34% | 4.22% |
| HD | 0.32% | 3.94% |
| PG | 0.32% | 3.81% |
| AMGN | 0.23% | 4.80% |
| TXN | 0.23% | 3.13% |
| VZ | 0.20% | 3.97% |
| PEP | 0.19% | 3.68% |
| ALV | 0.19% | 0.21% |
| ABT | 0.19% | 4.83% |
| QCOM | 0.17% | 2.41% |
| COP | 0.15% | 3.86% |
| BMY | 0.13% | 3.35% |
Largest positions held only by ACWI: NVDA (4.64%), AAPL (4.41%), MSFT (3.35%), AMZN (2.41%), GOOGL (1.91%). Only by SCHD: EWBC (0.43%), DINO (0.36%), SWKS (0.24%), AFG (0.24%), ORI (0.23%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 15 common positions shown.
Year-by-year returns
| Year | ACWI | SCHD |
|---|---|---|
| 2022 | -18.4% | -3.3% |
| 2023 | +22.3% | +4.5% |
| 2024 | +17.4% | +11.7% |
| 2025 | +22.4% | +4.3% |
| 2026 | +14.9% | +29.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ACWI and SCHD good diversifiers for each other?
To a limited degree. At 0.62 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between ACWI and SCHD?
The ACWI/SCHD correlation stands at 0.62 on a 3-year window (1 year: 0.27, 5 years: 0.75), computed from weekly returns as of 2026-08-27.
Is SCHD a good diversifier for ACWI?
To a limited degree. At 0.62 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
How much do ACWI and SCHD overlap?
The two funds share 51 holdings amounting to 5.5% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/acwi-vs-schd.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/acwi-vs-schd/)
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Related comparisons
Hubs: ACWI correlations · SCHD correlations
