SCHD vs VNQ: Correlation & Overlap
Schwab US Dividend Equity ETF (SCHD) and Vanguard Real Estate ETF (VNQ) show a strong relationship: their 3-year correlation of weekly returns is 0.72. Looking through to holdings, 0% of the two portfolios is the same by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SCHD and VNQ?
Over the past 3 years, SCHD and VNQ moved with a correlation of 0.72, which is strong. The past 12 months show a weaker link (0.55) than the 3-year average (0.72). Over 5 years the correlation is 0.76, and the annualized covariance of weekly returns is 152.9 %².
Within SCHD's tracked universe of 108 assets, VNQ comes in at #16 by 3-year correlation. The last year tells two different stories: SCHD led by 19.3 percentage points, +29.6% for SCHD against +10.3% for VNQ. Across three years, the rolling one-year figure varied moderately, from 0.57 to 0.84.
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 VNQ: side by side
| SCHD (Schwab US Dividend Equity ETF) | VNQ (Vanguard Real Estate ETF) | |
|---|---|---|
| 1-year return | +29.6% | +10.3% |
| 5-year return | +60.9% | +9.5% |
| Volatility (ann.) | 12.9% | 16.6% |
| Beta vs S&P 500 | 0.52 | 0.59 |
| Max drawdown (3Y) | -16.1% | -17.5% |
| Dividend yield | 3.13% | 3.51% |
| Expense ratio | 0.06% | 0.13% |
| Assets under management | $104.2B | $73.1B |
| Sector / category | ETF · Dividend | ETF · Real Estate |
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. VNQ is a Real Estate fund from Vanguard: $73.1B under management, 140 holdings, a 0.13% expense ratio, a 3.51% trailing dividend yield.
Portfolio overlap between SCHD and VNQ
The two portfolios are largely distinct: 0% of the funds' weight sits in the same underlying holdings (0 common positions). Correlation tells you they move together; overlap tells you why.
Largest positions held only by SCHD: MRK (4.92%), ABT (4.83%), AMGN (4.80%), KO (4.22%), VZ (3.97%). Only by VNQ: VRTPX (14.54%), WELL (8.54%), PLD (7.04%), EQIX (5.25%), AMT (4.22%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26.
Year-by-year returns
| Year | SCHD | VNQ |
|---|---|---|
| 2022 | -3.3% | -26.3% |
| 2023 | +4.5% | +11.9% |
| 2024 | +11.7% | +4.8% |
| 2025 | +4.3% | +3.2% |
| 2026 | +29.1% | +12.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SCHD and VNQ good diversifiers for each other?
Only partially. A correlation of 0.72 means SCHD and VNQ 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 VNQ?
The SCHD/VNQ correlation stands at 0.72 on a 3-year window (1 year: 0.55, 5 years: 0.76), computed from weekly returns as of 2026-08-27.
Is VNQ a good diversifier for SCHD?
Only partially. A correlation of 0.72 means SCHD and VNQ share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do SCHD and VNQ overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0% by weight over 0 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/schd-vs-vnq.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/schd-vs-vnq/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: SCHD correlations · VNQ correlations
