SCHD vs T: Correlation
Schwab US Dividend Equity ETF (SCHD) and AT&T (T) show a moderate relationship: their 3-year correlation of weekly returns is 0.36.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SCHD and T?
Over the past 3 years, SCHD and T moved with a correlation of 0.36, which is moderate. Little has changed lately, as the 1-year reading of 0.41 lands near the 3-year figure. Over 5 years the correlation is 0.42, and the annualized covariance of weekly returns is 103.7 %².
By 3-year correlation, T places #95 of the 108 assets tracked against SCHD. Correlation aside, the last 12 months split them widely, with SCHD ahead by 38.0 points (+29.6% versus -8.4%). The rolling one-year correlation moved between 0.15 and 0.58 over the past three years, a moderate range. One caveat on sizing: T is 1.7 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 T: side by side
| SCHD (Schwab US Dividend Equity ETF) | T (AT&T) | |
|---|---|---|
| 1-year return | +29.6% | -8.4% |
| 5-year return | +60.9% | +67.2% |
| Volatility (ann.) | 12.9% | 22.4% |
| Beta vs S&P 500 | 0.52 | 0.05 |
| Max drawdown (3Y) | -16.1% | -28.9% |
| Market cap | – | $174.3B |
| P/E (trailing) | – | 8.4 |
| Dividend yield | 3.13% | 4.29% |
| Expense ratio | 0.06% | – |
| Assets under management | $104.2B | – |
| Sector / category | ETF · Dividend | Communication Services |
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.
Year-by-year returns
| Year | SCHD | T |
|---|---|---|
| 2022 | -3.3% | +6.5% |
| 2023 | +4.5% | -2.7% |
| 2024 | +11.7% | +44.1% |
| 2025 | +4.3% | +14.0% |
| 2026 | +29.1% | +6.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SCHD and T good diversifiers for each other?
Reasonably. At 0.36, SCHD and T keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between SCHD and T?
As of 2026-08-27, the correlation of weekly returns between SCHD and T is 0.36 over 3 years, 0.41 over 1 year and 0.42 over 5 years.
Is T a good diversifier for SCHD?
Reasonably. At 0.36, SCHD and T keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.36 mean?
On the −1 to +1 scale, 0.36 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
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Related comparisons
Hubs: SCHD correlations · T correlations
