SCHD vs VIG: Correlation & Overlap
How closely do Schwab US Dividend Equity ETF (SCHD) and Vanguard Dividend Appreciation ETF (VIG) trade together? Their weekly returns over three years give a correlation of 0.79, which is strong. By holdings, the two funds overlap 14.4% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SCHD and VIG?
Over the past 3 years, SCHD and VIG moved with a correlation of 0.79, which is strong. The past 12 months show a weaker link (0.57) than the 3-year average (0.79). Over 5 years the correlation is 0.87, and the annualized covariance of weekly returns is 120.5 %².
By 3-year correlation, VIG places #7 of the 108 assets tracked against SCHD. The trailing year gives SCHD the advantage: +29.6% versus +17.1%, a 12.5-point spread. On a rolling one-year basis the correlation drifted between 0.60 and 0.95, 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 VIG: side by side
| SCHD (Schwab US Dividend Equity ETF) | VIG (Vanguard Dividend Appreciation ETF) | |
|---|---|---|
| 1-year return | +29.6% | +17.1% |
| 5-year return | +60.9% | +64.0% |
| Volatility (ann.) | 12.9% | 11.9% |
| Beta vs S&P 500 | 0.52 | 0.74 |
| Max drawdown (3Y) | -16.1% | -15.0% |
| Dividend yield | 3.13% | 1.50% |
| Expense ratio | 0.06% | 0.04% |
| Assets under management | $104.2B | $130.9B |
| Sector / category | ETF · Dividend | ETF · Dividend |
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. VIG, Vanguard's Large Blend fund, carries $130.9B under management, 333 holdings, a 0.04% expense ratio, a 1.50% trailing dividend yield.
Portfolio overlap between SCHD and VIG
The two portfolios are largely distinct. Weighing the shared positions, 14.4% of the two funds is identical, spread across 33 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in SCHD | Weight in VIG |
|---|---|---|
| UNH | 3.92% | 1.63% |
| KO | 4.22% | 1.47% |
| PG | 3.81% | 1.46% |
| HD | 3.94% | 1.43% |
| MRK | 4.92% | 1.40% |
| TXN | 3.13% | 1.09% |
| AMGN | 4.80% | 0.90% |
| PEP | 3.68% | 0.83% |
| ABT | 4.83% | 0.80% |
| QCOM | 2.41% | 0.68% |
| LMT | 2.79% | 0.51% |
| ADP | 2.73% | 0.46% |
| ACN | 2.70% | 0.44% |
| FAST | 1.43% | 0.24% |
| FITB | 1.21% | 0.22% |
Largest positions held only by SCHD: VZ (3.97%), CVX (3.89%), COP (3.86%), BMY (3.35%), MO (2.80%). Only by VIG: AVGO (4.65%), AAPL (4.47%), MSFT (4.35%), JPM (4.09%), LLY (3.94%).
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 | VIG |
|---|---|---|
| 2022 | -3.3% | -9.8% |
| 2023 | +4.5% | +14.5% |
| 2024 | +11.7% | +17.0% |
| 2025 | +4.3% | +14.2% |
| 2026 | +29.1% | +11.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SCHD and VIG good diversifiers for each other?
Only partially. A correlation of 0.79 means SCHD and VIG 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 VIG?
Using weekly returns as of 2026-08-27: 0.79 over 3 years, with 0.57 over the last year and 0.87 over 5 years.
Is VIG a good diversifier for SCHD?
Only partially. A correlation of 0.79 means SCHD and VIG share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do SCHD and VIG overlap?
The two funds share 33 holdings amounting to 14.4% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/schd-vs-vig.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/schd-vs-vig/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: SCHD correlations · VIG correlations
