EFA vs SCHD: Correlation & Overlap
Measured on weekly returns over the past three years, iShares MSCI EAFE ETF (EFA) and Schwab US Dividend Equity ETF (SCHD) carry a correlation of 0.60, a strong link. The two funds also share 0.6% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EFA and SCHD?
Across a 3-year window, the weekly returns of EFA and SCHD correlate at 0.60, strong. The link has loosened recently: the 1-year correlation (0.44) runs below the 3-year figure (0.60). Stretching to 5 years gives 0.69, with an annualized covariance of 115.5 %².
Among the 109 assets we track against EFA, SCHD ranks #64 by 3-year correlation. The trailing year gives SCHD the advantage: +21.9% versus +29.6%, a 7.7-point spread. Across three years, the rolling one-year figure varied moderately, from 0.46 to 0.84.
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.
EFA vs SCHD: side by side
| EFA (iShares MSCI EAFE ETF) | SCHD (Schwab US Dividend Equity ETF) | |
|---|---|---|
| 1-year return | +21.9% | +29.6% |
| 5-year return | +56.7% | +60.9% |
| Volatility (ann.) | 14.9% | 12.9% |
| Beta vs S&P 500 | 0.77 | 0.52 |
| Max drawdown (3Y) | -14.1% | -16.1% |
| Dividend yield | 3.19% | 3.13% |
| Expense ratio | 0.32% | 0.06% |
| Assets under management | $78.0B | $104.2B |
| Sector / category | ETF · International | ETF · Dividend |
EFA is a Foreign Large Blend fund from iShares: $78.0B under management, 666 holdings, a 0.32% expense ratio, a 3.19% 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 EFA and SCHD
The two portfolios are largely distinct. Weighing the shared positions, 0.6% of the two funds is identical, spread across 7 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in EFA | Weight in SCHD |
|---|---|---|
| ALV | 0.88% | 0.21% |
| MC | 0.58% | 0.12% |
| MRK | 0.09% | 4.92% |
| ADM | 0.06% | 0.94% |
| APA | 0.05% | 0.35% |
| CNA | 0.04% | 0.03% |
| ADP | 0.02% | 2.73% |
Largest positions held only by EFA: ASML (2.99%), HSBA (1.57%), ROP (1.42%), SAN (1.38%), NOVN (1.28%). Only by SCHD: ABT (4.83%), AMGN (4.80%), KO (4.22%), VZ (3.97%), HD (3.94%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 7 common positions shown.
Year-by-year returns
| Year | EFA | SCHD |
|---|---|---|
| 2022 | -14.4% | -3.3% |
| 2023 | +18.4% | +4.5% |
| 2024 | +3.5% | +11.7% |
| 2025 | +31.5% | +4.3% |
| 2026 | +14.3% | +29.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EFA and SCHD good diversifiers for each other?
Only partially. A correlation of 0.60 means EFA and SCHD share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between EFA and SCHD?
As of 2026-08-27, the correlation of weekly returns between EFA and SCHD is 0.60 over 3 years, 0.44 over 1 year and 0.69 over 5 years.
Is SCHD a good diversifier for EFA?
Only partially. A correlation of 0.60 means EFA and SCHD share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do EFA and SCHD overlap?
0.6% by weight, across 7 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
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Hubs: EFA correlations · SCHD correlations
