EEM vs SCHD: Correlation & Overlap
Measured on weekly returns over the past three years, iShares MSCI Emerging Markets ETF (EEM) and Schwab US Dividend Equity ETF (SCHD) carry a correlation of 0.40, a moderate link. Looking through to holdings, 0.1% of the two portfolios is the same by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EEM and SCHD?
Across a 3-year window, the weekly returns of EEM and SCHD correlate at 0.40, moderate. The past 12 months show a weaker link (0.16) than the 3-year average (0.40). Stretching to 5 years gives 0.46, with an annualized covariance of 91.6 %².
Among the 67 assets we track against EEM, SCHD ranks #50 by 3-year correlation. On 12-month performance EEM holds a 8.5-point edge, +38.1% against +29.6%. This link changes with the market regime, having swung between 0.17 and 0.71 on a rolling one-year basis.
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.
EEM vs SCHD: side by side
| EEM (iShares MSCI Emerging Markets ETF) | SCHD (Schwab US Dividend Equity ETF) | |
|---|---|---|
| 1-year return | +38.1% | +29.6% |
| 5-year return | +47.1% | +60.9% |
| Volatility (ann.) | 18.0% | 12.9% |
| Beta vs S&P 500 | 0.85 | 0.52 |
| Max drawdown (3Y) | -17.3% | -16.1% |
| Dividend yield | 1.73% | 3.13% |
| Expense ratio | 0.72% | 0.06% |
| Assets under management | $29.2B | $104.2B |
| Sector / category | ETF · International | ETF · Dividend |
EEM is a Diversified Emerging Mkts fund from iShares: $29.2B under management, 968 holdings, a 0.72% expense ratio, a 1.73% 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 EEM and SCHD
The two portfolios are largely distinct, with 1 holdings in common adding up to 0.1% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in EEM | Weight in SCHD |
|---|---|---|
| MTN | 0.17% | 0.13% |
Largest positions held only by EEM: 2330 (15.14%), 005930 (7.15%), 000660 (5.45%), 700 (2.83%), 9988 (2.02%). Only by SCHD: MRK (4.92%), ABT (4.83%), AMGN (4.80%), KO (4.22%), VZ (3.97%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 1 common positions shown.
Year-by-year returns
| Year | EEM | SCHD |
|---|---|---|
| 2022 | -20.6% | -3.3% |
| 2023 | +8.9% | +4.5% |
| 2024 | +6.5% | +11.7% |
| 2025 | +34.0% | +4.3% |
| 2026 | +24.2% | +29.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EEM and SCHD good diversifiers for each other?
A fair diversifier. At 0.40, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between EEM and SCHD?
The EEM/SCHD correlation stands at 0.40 on a 3-year window (1 year: 0.16, 5 years: 0.46), computed from weekly returns as of 2026-08-27.
Is SCHD a good diversifier for EEM?
A fair diversifier. At 0.40, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
How much do EEM and SCHD overlap?
The two funds share 1 holdings amounting to 0.1% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/eem-vs-schd.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/eem-vs-schd/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: EEM correlations · SCHD correlations
