SCHD vs VEA: Correlation & Overlap
Schwab US Dividend Equity ETF (SCHD) and Vanguard FTSE Developed Markets ETF (VEA) show a strong relationship: their 3-year correlation of weekly returns is 0.60. The two funds also share 0.6% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SCHD and VEA?
Across a 3-year window, the weekly returns of SCHD and VEA correlate at 0.60, strong. The link has loosened recently: the 1-year correlation (0.39) runs below the 3-year figure (0.60). Stretching to 5 years gives 0.69, with an annualized covariance of 115.9 %².
Within SCHD's tracked universe of 108 assets, VEA comes in at #39 by 3-year correlation. Neither side won the trailing year by much: +29.6% against +28.5%. The rolling one-year correlation moved between 0.40 and 0.85 over the past three years, a moderate range.
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 VEA: side by side
| SCHD (Schwab US Dividend Equity ETF) | VEA (Vanguard FTSE Developed Markets ETF) | |
|---|---|---|
| 1-year return | +29.6% | +28.5% |
| 5-year return | +60.9% | +63.5% |
| Volatility (ann.) | 12.9% | 15.1% |
| Beta vs S&P 500 | 0.52 | 0.79 |
| Max drawdown (3Y) | -16.1% | -13.5% |
| Dividend yield | 3.13% | 2.56% |
| Expense ratio | 0.06% | 0.03% |
| Assets under management | $104.2B | $314.9B |
| Sector / category | ETF · Dividend | ETF · International |
SCHD, Schwab ETFs's Large Value fund, carries $104.2B under management, 101 holdings, a 0.06% expense ratio, a 3.13% trailing dividend yield. VEA is a Foreign Large Blend fund from Vanguard: $314.9B under management, 3769 holdings, a 0.03% expense ratio, a 2.56% trailing dividend yield.
Portfolio overlap between SCHD and VEA
The two portfolios are largely distinct. Weighing the shared positions, 0.6% of the two funds is identical, spread across 13 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in SCHD | Weight in VEA |
|---|---|---|
| ALV | 0.21% | 0.60% |
| MC | 0.12% | 0.43% |
| MRK | 4.92% | 0.07% |
| ADM | 0.94% | 0.04% |
| APA | 0.35% | 0.03% |
| CNA | 0.03% | 0.03% |
| ORI | 0.23% | 0.02% |
| BBY | 0.42% | 0.02% |
| ADP | 2.73% | 0.02% |
| APAM | 0.07% | 0.01% |
| PAG | 0.10% | 0.01% |
| RF | 0.64% | 0.00% |
| AFG | 0.24% | 0.00% |
Largest positions held only by SCHD: ABT (4.83%), AMGN (4.80%), KO (4.22%), VZ (3.97%), HD (3.94%). Only by VEA: 005930 (2.53%), ASML (2.00%), 000660 (1.98%), HSBA (1.15%), ROP (0.97%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 13 common positions shown.
Year-by-year returns
| Year | SCHD | VEA |
|---|---|---|
| 2022 | -3.3% | -15.3% |
| 2023 | +4.5% | +17.9% |
| 2024 | +11.7% | +3.1% |
| 2025 | +4.3% | +35.2% |
| 2026 | +29.1% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SCHD and VEA good diversifiers for each other?
Somewhat, no more. With 0.60 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between SCHD and VEA?
The SCHD/VEA correlation stands at 0.60 on a 3-year window (1 year: 0.39, 5 years: 0.69), computed from weekly returns as of 2026-08-27.
Is VEA a good diversifier for SCHD?
Somewhat, no more. With 0.60 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do SCHD and VEA overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0.6% by weight over 13 common positions.
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Hubs: SCHD correlations · VEA correlations
