SCHD vs TXT: Correlation
Schwab US Dividend Equity ETF (SCHD) and Textron (TXT) show a strong relationship: their 3-year correlation of weekly returns is 0.61.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SCHD and TXT?
Over the past 3 years, SCHD and TXT moved with a correlation of 0.61, which is strong. The past 12 months show a weaker link (0.44) than the 3-year average (0.61). Over 5 years the correlation is 0.65, and the annualized covariance of weekly returns is 198.6 %².
By 3-year correlation, TXT places #35 of the 108 assets tracked against SCHD. The last year tells two different stories: SCHD led by 28.9 percentage points, +29.6% for SCHD against +0.7% for TXT. Across three years, the rolling one-year figure varied moderately, from 0.38 to 0.87. Note the risk asymmetry: TXT runs 2.0 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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 TXT: side by side
| SCHD (Schwab US Dividend Equity ETF) | TXT (Textron) | |
|---|---|---|
| 1-year return | +29.6% | +0.7% |
| 5-year return | +60.9% | +15.1% |
| Volatility (ann.) | 12.9% | 25.4% |
| Beta vs S&P 500 | 0.52 | 0.89 |
| Max drawdown (3Y) | -16.1% | -37.3% |
| Market cap | – | $14.2B |
| P/E (trailing) | – | 15.7 |
| Dividend yield | 3.13% | 0.10% |
| Expense ratio | 0.06% | – |
| Assets under management | $104.2B | – |
| Sector / category | ETF · Dividend | Industrials |
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 | TXT |
|---|---|---|
| 2022 | -3.3% | -8.2% |
| 2023 | +4.5% | +13.7% |
| 2024 | +11.7% | -4.8% |
| 2025 | +4.3% | +14.1% |
| 2026 | +29.1% | -5.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SCHD and TXT good diversifiers for each other?
Only partially. A correlation of 0.61 means SCHD and TXT share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between SCHD and TXT?
As of 2026-08-27, the correlation of weekly returns between SCHD and TXT is 0.61 over 3 years, 0.44 over 1 year and 0.65 over 5 years.
Is TXT a good diversifier for SCHD?
Only partially. A correlation of 0.61 means SCHD and TXT share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.61 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/schd-vs-txt.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/schd-vs-txt/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: SCHD correlations · TXT correlations
