SCHD vs SPY: Correlation & Overlap
Schwab US Dividend Equity ETF (SCHD) and SPDR S&P 500 ETF Trust (SPY) show a moderate relationship: their 3-year correlation of weekly returns is 0.59. By holdings, the two funds overlap 8.1% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SCHD and SPY?
Across a 3-year window, the weekly returns of SCHD and SPY correlate at 0.59, moderate. The link has loosened recently: the 1-year correlation (0.19) runs below the 3-year figure (0.59). Stretching to 5 years gives 0.75, with an annualized covariance of 109.3 %².
By 3-year correlation, SPY places #41 of the 108 assets tracked against SCHD. The trailing year gives SCHD the advantage: +29.6% versus +20.6%, a 9.0-point spread. Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from 0.22 to 0.89.
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.
SCHD vs SPY: side by side
| SCHD (Schwab US Dividend Equity ETF) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +29.6% | +20.6% |
| 5-year return | +60.9% | +82.4% |
| Volatility (ann.) | 12.9% | 14.5% |
| Beta vs S&P 500 | 0.52 | 1.00 |
| Max drawdown (3Y) | -16.1% | -18.8% |
| Dividend yield | 3.13% | 1.01% |
| Expense ratio | 0.06% | 0.09% |
| Assets under management | $104.2B | $795.3B |
| Sector / category | ETF · Dividend | ETF · US Large Cap |
SCHD is a Large Value fund from Schwab ETFs: $104.2B under management, 101 holdings, a 0.06% expense ratio, a 3.13% trailing dividend yield. SPY is a Large Blend fund from State Street Investment Management: $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% trailing dividend yield.
Portfolio overlap between SCHD and SPY
The two portfolios are largely distinct. Weighing the shared positions, 8.1% of the two funds is identical, spread across 46 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in SCHD | Weight in SPY |
|---|---|---|
| MRK | 4.92% | 0.57% |
| CVX | 3.89% | 0.57% |
| UNH | 3.92% | 0.55% |
| KO | 4.22% | 0.53% |
| PG | 3.81% | 0.51% |
| HD | 3.94% | 0.50% |
| TXN | 3.13% | 0.36% |
| AMGN | 4.80% | 0.36% |
| VZ | 3.97% | 0.32% |
| ABT | 4.83% | 0.30% |
| PEP | 3.68% | 0.29% |
| QCOM | 2.41% | 0.26% |
| COP | 3.86% | 0.24% |
| BMY | 3.35% | 0.21% |
| MO | 2.80% | 0.17% |
Largest positions held only by SCHD: EWBC (0.43%), DINO (0.36%), FNF (0.29%), WSO (0.27%), AFG (0.24%). Only by SPY: NVDA (7.68%), AAPL (6.96%), MSFT (5.58%), AMZN (3.85%), GOOGL (3.03%).
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 | SCHD | SPY |
|---|---|---|
| 2022 | -3.3% | -18.2% |
| 2023 | +4.5% | +26.2% |
| 2024 | +11.7% | +24.9% |
| 2025 | +4.3% | +17.7% |
| 2026 | +29.1% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SCHD and SPY good diversifiers for each other?
Somewhat, no more. With 0.59 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between SCHD and SPY?
Using weekly returns as of 2026-08-27: 0.59 over 3 years, with 0.19 over the last year and 0.75 over 5 years.
Is SPY a good diversifier for SCHD?
Somewhat, no more. With 0.59 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do SCHD and SPY overlap?
The two funds share 46 holdings amounting to 8.1% of weight, per issuer portfolio files dated 2026-08-26.
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