SCHD vs TGT: Correlation
How closely do Schwab US Dividend Equity ETF (SCHD) and Target Corporation (TGT) trade together? Their weekly returns over three years give a correlation of 0.47, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SCHD and TGT?
On 3 years of weekly data the SCHD/TGT correlation comes out at 0.47, moderate. Recent behaviour matches the longer record: 0.54 over 1 year against 0.47 over 3. The 5-year figure is 0.52, and annualized covariance runs at 194.3 %².
Among the 108 assets we track against SCHD, TGT ranks #67 by 3-year correlation. Correlation aside, the last 12 months split them widely, with TGT ahead by 46.6 points (+29.6% versus +76.2%). Across three years, the rolling one-year figure varied moderately, from 0.22 to 0.70. Risk is not evenly split, since TGT carries 2.5 times the volatility of the other side.
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 TGT: side by side
| SCHD (Schwab US Dividend Equity ETF) | TGT (Target Corporation) | |
|---|---|---|
| 1-year return | +29.6% | +76.2% |
| 5-year return | +60.9% | -22.2% |
| Volatility (ann.) | 12.9% | 32.0% |
| Beta vs S&P 500 | 0.52 | 0.62 |
| Max drawdown (3Y) | -16.1% | -49.8% |
| Market cap | – | $75.4B |
| P/E (trailing) | – | 17.2 |
| Dividend yield | 3.13% | 2.78% |
| Expense ratio | 0.06% | – |
| Assets under management | $104.2B | – |
| Sector / category | ETF · Dividend | Consumer Staples |
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 | TGT |
|---|---|---|
| 2022 | -3.3% | -34.2% |
| 2023 | +4.5% | -1.4% |
| 2024 | +11.7% | -2.3% |
| 2025 | +4.3% | -24.5% |
| 2026 | +29.1% | +74.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that SCHD holds TGT at a 1.81% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are SCHD and TGT good diversifiers for each other?
A fair diversifier. At 0.47, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between SCHD and TGT?
The SCHD/TGT correlation stands at 0.47 on a 3-year window (1 year: 0.54, 5 years: 0.52), computed from weekly returns as of 2026-08-27.
Is TGT a good diversifier for SCHD?
A fair diversifier. At 0.47, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.47 mean?
A reading of 0.47 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: SCHD correlations · TGT correlations
