IEFA vs SCHD: Correlation & Overlap
Measured on weekly returns over the past three years, iShares Core MSCI EAFE ETF (IEFA) and Schwab US Dividend Equity ETF (SCHD) carry a correlation of 0.60, a strong link. Looking through to holdings, 0.6% 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 IEFA and SCHD?
Across a 3-year window, the weekly returns of IEFA and SCHD correlate at 0.60, strong. The past 12 months show a weaker link (0.44) than the 3-year average (0.60). Stretching to 5 years gives 0.69, with an annualized covariance of 115.4 %².
Within IEFA's tracked universe of 111 assets, SCHD comes in at #66 by 3-year correlation. The trailing year gives SCHD the advantage: +21.8% versus +29.6%, a 7.8-point spread. On a rolling one-year basis the correlation drifted between 0.46 and 0.84, a moderate band.
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.
IEFA vs SCHD: side by side
| IEFA (iShares Core MSCI EAFE ETF) | SCHD (Schwab US Dividend Equity ETF) | |
|---|---|---|
| 1-year return | +21.8% | +29.6% |
| 5-year return | +54.5% | +60.9% |
| Volatility (ann.) | 15.0% | 12.9% |
| Beta vs S&P 500 | 0.77 | 0.52 |
| Max drawdown (3Y) | -13.8% | -16.1% |
| Dividend yield | 3.35% | 3.13% |
| Expense ratio | 0.07% | 0.06% |
| Assets under management | $190.1B | $104.2B |
| Sector / category | ETF · International | ETF · Dividend |
On the fund side, IEFA sits in the Foreign Large Blend category at iShares, with $190.1B under management, 1620 holdings, a 0.07% expense ratio, a 3.35% 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 IEFA and SCHD
The two portfolios are largely distinct: 0.6% of the funds' weight sits in the same underlying holdings (12 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in IEFA | Weight in SCHD |
|---|---|---|
| ALV | 0.76% | 0.21% |
| MC | 0.50% | 0.12% |
| MRK | 0.08% | 4.92% |
| ADM | 0.05% | 0.94% |
| APA | 0.04% | 0.35% |
| ORI | 0.03% | 0.23% |
| CNA | 0.04% | 0.03% |
| BBY | 0.02% | 0.42% |
| ADP | 0.02% | 2.73% |
| PAG | 0.01% | 0.10% |
| APAM | 0.01% | 0.07% |
| RF | 0.01% | 0.64% |
Largest positions held only by IEFA: ASML (2.57%), HSBA (1.35%), ROP (1.22%), SAN (1.17%), NOVN (1.10%). 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 12 common positions shown.
Year-by-year returns
| Year | IEFA | SCHD |
|---|---|---|
| 2022 | -15.2% | -3.3% |
| 2023 | +18.0% | +4.5% |
| 2024 | +3.3% | +11.7% |
| 2025 | +32.1% | +4.3% |
| 2026 | +14.5% | +29.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IEFA and SCHD good diversifiers for each other?
Only partially. A correlation of 0.60 means IEFA 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 IEFA and SCHD?
As of 2026-08-27, the correlation of weekly returns between IEFA 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 IEFA?
Only partially. A correlation of 0.60 means IEFA and SCHD share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do IEFA and SCHD overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0.6% by weight over 12 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/iefa-vs-schd.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/iefa-vs-schd/)
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Related comparisons
Hubs: IEFA correlations · SCHD correlations
