SCHD vs UNP: Correlation
Schwab US Dividend Equity ETF (SCHD) and Union Pacific Corporation (UNP) show a strong relationship: their 3-year correlation of weekly returns is 0.66.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SCHD and UNP?
Over the past 3 years, SCHD and UNP moved with a correlation of 0.66, which is strong. Lately the two have drifted apart, with the 1-year correlation at 0.48 versus 0.66 over 3 years. Over 5 years the correlation is 0.65, and the annualized covariance of weekly returns is 176.3 %².
Among the 108 assets we track against SCHD, UNP ranks #23 by 3-year correlation. Over the last 12 months UNP came out ahead by 12.8 percentage points (+29.6% against +42.4%). The rolling one-year correlation moved between 0.45 and 0.77 over the past three years, a moderate range. Note the risk asymmetry: UNP runs 1.6 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 UNP: side by side
| SCHD (Schwab US Dividend Equity ETF) | UNP (Union Pacific Corporation) | |
|---|---|---|
| 1-year return | +29.6% | +42.4% |
| 5-year return | +60.9% | +56.5% |
| Volatility (ann.) | 12.9% | 20.6% |
| Beta vs S&P 500 | 0.52 | 0.56 |
| Max drawdown (3Y) | -16.1% | -17.8% |
| Market cap | – | $182.8B |
| P/E (trailing) | – | 25.1 |
| Dividend yield | 3.13% | 1.78% |
| Expense ratio | 0.06% | – |
| Assets under management | $104.2B | – |
| Sector / category | ETF · Dividend | Industrials |
On the fund side, SCHD sits in the Large Value category at Schwab ETFs, with $104.2B under management, 101 holdings, a 0.06% expense ratio, a 3.13% trailing dividend yield.
Year-by-year returns
| Year | SCHD | UNP |
|---|---|---|
| 2022 | -3.3% | -15.9% |
| 2023 | +4.5% | +21.6% |
| 2024 | +11.7% | -5.1% |
| 2025 | +4.3% | +3.9% |
| 2026 | +29.1% | +34.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SCHD and UNP good diversifiers for each other?
To a limited degree. At 0.66 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between SCHD and UNP?
The SCHD/UNP correlation stands at 0.66 on a 3-year window (1 year: 0.48, 5 years: 0.65), computed from weekly returns as of 2026-08-27.
Is UNP a good diversifier for SCHD?
To a limited degree. At 0.66 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.66 mean?
On the −1 to +1 scale, 0.66 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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/schd-vs-unp.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/schd-vs-unp/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: SCHD correlations · UNP correlations
