MDY vs SCHD: Correlation & Overlap
How closely do SPDR S&P MidCap 400 ETF (MDY) and Schwab US Dividend Equity ETF (SCHD) trade together? Their weekly returns over three years give a correlation of 0.79, which is strong. The two funds also share 3.5% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MDY and SCHD?
On 3 years of weekly data the MDY/SCHD correlation comes out at 0.79, strong. The past 12 months show a weaker link (0.53) than the 3-year average (0.79). The 5-year figure is 0.85, and annualized covariance runs at 167.4 %².
Among the 359 assets we track against MDY, SCHD ranks #24 by 3-year correlation. The trailing year gives SCHD the advantage: +18.3% versus +29.6%, a 11.3-point spread. On a rolling one-year basis the correlation drifted between 0.58 and 0.91, 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.
MDY vs SCHD: side by side
| MDY (SPDR S&P MidCap 400 ETF) | SCHD (Schwab US Dividend Equity ETF) | |
|---|---|---|
| 1-year return | +18.3% | +29.6% |
| 5-year return | +47.5% | +60.9% |
| Volatility (ann.) | 16.5% | 12.9% |
| Beta vs S&P 500 | 0.91 | 0.52 |
| Max drawdown (3Y) | -24.0% | -16.1% |
| Dividend yield | 1.02% | 3.13% |
| Expense ratio | 0.23% | 0.06% |
| Assets under management | $26.5B | $104.2B |
| Sector / category | ETF · US Small & Mid Cap | ETF · Dividend |
MDY is a Mid-Cap Blend fund from State Street Investment Management: $26.5B under management, 400 holdings, a 0.23% expense ratio, a 1.02% 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 MDY and SCHD
The two portfolios are largely distinct: 3.5% of the funds' weight sits in the same underlying holdings (18 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in MDY | Weight in SCHD |
|---|---|---|
| EWBC | 0.49% | 0.43% |
| DINO | 0.41% | 0.36% |
| FNF | 0.33% | 0.29% |
| WSO | 0.30% | 0.27% |
| AFG | 0.27% | 0.24% |
| ORI | 0.26% | 0.23% |
| BAH | 0.25% | 0.22% |
| COLB | 0.24% | 0.22% |
| ALV | 0.23% | 0.21% |
| M | 0.16% | 0.15% |
| MSM | 0.15% | 0.14% |
| NXST | 0.15% | 0.13% |
| MTN | 0.15% | 0.13% |
| OZK | 0.14% | 0.12% |
| FHI | 0.13% | 0.11% |
Largest positions held only by MDY: TWLO (0.95%), P (0.94%), ILMN (0.93%), FTI (0.83%), ATI (0.80%). 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 15 common positions shown.
Year-by-year returns
| Year | MDY | SCHD |
|---|---|---|
| 2022 | -13.3% | -3.3% |
| 2023 | +16.1% | +4.5% |
| 2024 | +13.6% | +11.7% |
| 2025 | +7.2% | +4.3% |
| 2026 | +16.4% | +29.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MDY and SCHD good diversifiers for each other?
To a limited degree. At 0.79 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between MDY and SCHD?
The MDY/SCHD correlation stands at 0.79 on a 3-year window (1 year: 0.53, 5 years: 0.85), computed from weekly returns as of 2026-08-27.
Is SCHD a good diversifier for MDY?
To a limited degree. At 0.79 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
How much do MDY and SCHD overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 3.5% by weight over 18 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/mdy-vs-schd.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/mdy-vs-schd/)
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Related comparisons
Hubs: MDY correlations · SCHD correlations
