ITW vs SCHD: Correlation
Measured on weekly returns over the past three years, Illinois Tool Works (ITW) and Schwab US Dividend Equity ETF (SCHD) carry a correlation of 0.69, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ITW and SCHD?
Over the past 3 years, ITW and SCHD moved with a correlation of 0.69, which is strong. Lately the two have drifted apart, with the 1-year correlation at 0.53 versus 0.69 over 3 years. Over 5 years the correlation is 0.74, and the annualized covariance of weekly returns is 168.5 %².
Within ITW's tracked universe of 81 assets, SCHD comes in at #11 by 3-year correlation. Correlation aside, the last 12 months split them widely, with SCHD ahead by 21.4 points (+8.2% versus +29.6%). The link looks structural: the rolling one-year correlation barely moved, holding between 0.60 and 0.82.
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.
ITW vs SCHD: side by side
| ITW (Illinois Tool Works) | SCHD (Schwab US Dividend Equity ETF) | |
|---|---|---|
| 1-year return | +8.2% | +29.6% |
| 5-year return | +36.1% | +60.9% |
| Volatility (ann.) | 19.0% | 12.9% |
| Beta vs S&P 500 | 0.64 | 0.52 |
| Max drawdown (3Y) | -20.6% | -16.1% |
| Market cap | $80.2B | – |
| P/E (trailing) | 25.8 | – |
| Dividend yield | 2.26% | 3.13% |
| Expense ratio | – | 0.06% |
| Assets under management | – | $104.2B |
| Sector / category | Industrials | ETF · Dividend |
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.
Year-by-year returns
| Year | ITW | SCHD |
|---|---|---|
| 2022 | -8.5% | -3.3% |
| 2023 | +21.6% | +4.5% |
| 2024 | -1.0% | +11.7% |
| 2025 | -0.4% | +4.3% |
| 2026 | +15.8% | +29.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ITW and SCHD good diversifiers for each other?
Somewhat, no more. With 0.69 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between ITW and SCHD?
As of 2026-08-27, the correlation of weekly returns between ITW and SCHD is 0.69 over 3 years, 0.53 over 1 year and 0.74 over 5 years.
Is SCHD a good diversifier for ITW?
Somewhat, no more. With 0.69 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.69 mean?
A reading of 0.69 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/itw-vs-schd.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/itw-vs-schd/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: ITW correlations · SCHD correlations
