PEP vs SCHD: Correlation
PepsiCo (PEP) and Schwab US Dividend Equity ETF (SCHD) show a moderate relationship: their 3-year correlation of weekly returns is 0.46.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PEP and SCHD?
On 3 years of weekly data the PEP/SCHD correlation comes out at 0.46, moderate. Little has changed lately, as the 1-year reading of 0.52 lands near the 3-year figure. The 5-year figure is 0.49, and annualized covariance runs at 112.8 %².
Among the 38 assets we track against PEP, SCHD ranks #13 by 3-year correlation. The last year tells two different stories: SCHD led by 31.2 percentage points, -1.6% for PEP against +29.6% for SCHD. Across three years, the rolling one-year figure varied moderately, from 0.28 to 0.57.
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.
PEP vs SCHD: side by side
| PEP (PepsiCo) | SCHD (Schwab US Dividend Equity ETF) | |
|---|---|---|
| 1-year return | -1.6% | +29.6% |
| 5-year return | +4.9% | +60.9% |
| Volatility (ann.) | 19.1% | 12.9% |
| Beta vs S&P 500 | 0.13 | 0.52 |
| Max drawdown (3Y) | -27.5% | -16.1% |
| Market cap | $190.9B | – |
| P/E (trailing) | 18.6 | – |
| Dividend yield | 4.04% | 3.13% |
| Expense ratio | – | 0.06% |
| Assets under management | – | $104.2B |
| Sector / category | Consumer Staples | 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 | PEP | SCHD |
|---|---|---|
| 2022 | +6.8% | -3.3% |
| 2023 | -3.3% | +4.5% |
| 2024 | -7.6% | +11.7% |
| 2025 | -1.8% | +4.3% |
| 2026 | -0.7% | +29.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 3.68% of SCHD is PEP itself, so the fund partly moves with the stock by construction.
Are PEP and SCHD good diversifiers for each other?
Reasonably. At 0.46, PEP and SCHD keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between PEP and SCHD?
As of 2026-08-27, the correlation of weekly returns between PEP and SCHD is 0.46 over 3 years, 0.52 over 1 year and 0.49 over 5 years.
Is SCHD a good diversifier for PEP?
Reasonably. At 0.46, PEP and SCHD keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.46 mean?
A reading of 0.46 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
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Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/pep-vs-schd/)
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Related comparisons
Hubs: PEP correlations · SCHD correlations
