SCHD vs USMV: Correlation & Overlap
How closely do Schwab US Dividend Equity ETF (SCHD) and iShares MSCI USA Min Vol Factor ETF (USMV) trade together? Their weekly returns over three years give a correlation of 0.77, which is strong. The two funds also share 11.1% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SCHD and USMV?
On 3 years of weekly data the SCHD/USMV correlation comes out at 0.77, strong. Lately the two have drifted apart, with the 1-year correlation at 0.58 versus 0.77 over 3 years. The 5-year figure is 0.83, and annualized covariance runs at 98.2 %².
Among the 108 assets we track against SCHD, USMV ranks #9 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months SCHD outperformed by 19.5 percentage points (+29.6% for SCHD against +10.1% for USMV). On a rolling one-year basis the correlation drifted between 0.61 and 0.90, a moderate band.
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 USMV: side by side
| SCHD (Schwab US Dividend Equity ETF) | USMV (iShares MSCI USA Min Vol Factor ETF) | |
|---|---|---|
| 1-year return | +29.6% | +10.1% |
| 5-year return | +60.9% | +42.3% |
| Volatility (ann.) | 12.9% | 9.9% |
| Beta vs S&P 500 | 0.52 | 0.51 |
| Max drawdown (3Y) | -16.1% | -9.4% |
| Dividend yield | 3.13% | 1.48% |
| Expense ratio | 0.06% | 0.15% |
| Assets under management | $104.2B | $23.6B |
| Sector / category | ETF · Dividend | ETF · US Style |
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. USMV, iShares's Large Blend fund, carries $23.6B under management, 164 holdings, a 0.15% expense ratio, a 1.48% trailing dividend yield.
Portfolio overlap between SCHD and USMV
The two portfolios are largely distinct. Weighing the shared positions, 11.1% of the two funds is identical, spread across 18 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in SCHD | Weight in USMV |
|---|---|---|
| MRK | 4.92% | 1.54% |
| VZ | 3.97% | 1.46% |
| KO | 4.22% | 1.28% |
| PG | 3.81% | 1.02% |
| PEP | 3.68% | 0.85% |
| LMT | 2.79% | 0.81% |
| ABT | 4.83% | 0.78% |
| ACN | 2.70% | 0.71% |
| TXN | 3.13% | 0.68% |
| UNH | 3.92% | 0.40% |
| CVX | 3.89% | 0.39% |
| AMGN | 4.80% | 0.37% |
| HSY | 0.67% | 0.22% |
| EOG | 1.87% | 0.17% |
| QCOM | 2.41% | 0.17% |
Largest positions held only by SCHD: COP (3.86%), BMY (3.35%), MO (2.80%), BX (2.58%), CMCSA (2.35%). Only by USMV: MSFT (1.68%), NEM (1.65%), VRTX (1.63%), JNJ (1.58%), WELL (1.57%).
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 | USMV |
|---|---|---|
| 2022 | -3.3% | -9.4% |
| 2023 | +4.5% | +10.3% |
| 2024 | +11.7% | +15.7% |
| 2025 | +4.3% | +7.6% |
| 2026 | +29.1% | +9.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SCHD and USMV good diversifiers for each other?
To a limited degree. At 0.77 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 USMV?
The SCHD/USMV correlation stands at 0.77 on a 3-year window (1 year: 0.58, 5 years: 0.83), computed from weekly returns as of 2026-08-27.
Is USMV a good diversifier for SCHD?
To a limited degree. At 0.77 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
How much do SCHD and USMV overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 11.1% by weight over 18 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/schd-vs-usmv.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/schd-vs-usmv/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: SCHD correlations · USMV correlations
