DGRO vs SCHD: Correlation & Overlap
Measured on weekly returns over the past three years, iShares Core Dividend Growth ETF (DGRO) and Schwab US Dividend Equity ETF (SCHD) carry a correlation of 0.88, a very strong link. The two funds also share 20.8% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DGRO and SCHD?
Across a 3-year window, the weekly returns of DGRO and SCHD correlate at 0.88, very strong, meaning they move nearly in lockstep. The link has loosened recently: the 1-year correlation (0.74) runs below the 3-year figure (0.88). Stretching to 5 years gives 0.93, with an annualized covariance of 129.7 %².
Among the 138 assets we track against DGRO, SCHD ranks #11 by 3-year correlation. Over the last 12 months SCHD came out ahead by 8.6 percentage points (+21.0% against +29.6%). The link looks structural: the rolling one-year correlation barely moved, holding between 0.77 and 0.97.
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.
DGRO vs SCHD: side by side
| DGRO (iShares Core Dividend Growth ETF) | SCHD (Schwab US Dividend Equity ETF) | |
|---|---|---|
| 1-year return | +21.0% | +29.6% |
| 5-year return | +67.9% | +60.9% |
| Volatility (ann.) | 11.4% | 12.9% |
| Beta vs S&P 500 | 0.65 | 0.52 |
| Max drawdown (3Y) | -14.0% | -16.1% |
| Dividend yield | 1.89% | 3.13% |
| Expense ratio | 0.08% | 0.06% |
| Assets under management | $42.8B | $104.2B |
| Sector / category | ETF · Dividend | ETF · Dividend |
On the fund side, DGRO sits in the Large Value category at iShares, with $42.8B under management, 383 holdings, a 0.08% expense ratio, a 1.89% 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 DGRO and SCHD
The two portfolios partially overlap. Weighing the shared positions, 20.8% of the two funds is identical, spread across 32 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in DGRO | Weight in SCHD |
|---|---|---|
| MRK | 2.20% | 4.92% |
| PG | 2.13% | 3.81% |
| HD | 2.11% | 3.94% |
| KO | 1.98% | 4.22% |
| UNH | 1.67% | 3.92% |
| PEP | 1.66% | 3.68% |
| AMGN | 1.45% | 4.80% |
| ABT | 1.16% | 4.83% |
| COP | 0.95% | 3.86% |
| ACN | 0.88% | 2.70% |
| ADP | 0.71% | 2.73% |
| LMT | 0.62% | 2.79% |
| QCOM | 0.59% | 2.41% |
| EOG | 0.47% | 1.87% |
| FITB | 0.32% | 1.21% |
Largest positions held only by DGRO: MSFT (3.39%), JNJ (3.16%), JPM (3.14%), ABBV (3.03%), XOM (2.86%). Only by SCHD: VZ (3.97%), CVX (3.89%), BMY (3.35%), TXN (3.13%), MO (2.80%).
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 | DGRO | SCHD |
|---|---|---|
| 2022 | -7.9% | -3.3% |
| 2023 | +10.5% | +4.5% |
| 2024 | +16.6% | +11.7% |
| 2025 | +15.7% | +4.3% |
| 2026 | +15.2% | +29.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DGRO and SCHD good diversifiers for each other?
No: a correlation of 0.88 means DGRO and SCHD tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between DGRO and SCHD?
Using weekly returns as of 2026-08-27: 0.88 over 3 years, with 0.74 over the last year and 0.93 over 5 years.
Is SCHD a good diversifier for DGRO?
No: a correlation of 0.88 means DGRO and SCHD tend to fall together, which is precisely when diversification is supposed to help.
How much do DGRO and SCHD overlap?
The two funds share 32 holdings amounting to 20.8% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/dgro-vs-schd.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/dgro-vs-schd/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: DGRO correlations · SCHD correlations
