SCHD vs VOO: Correlation & Overlap
How closely do Schwab US Dividend Equity ETF (SCHD) and Vanguard S&P 500 ETF (VOO) trade together? Their weekly returns over three years give a correlation of 0.59, which is moderate. Looking through to holdings, 8.0% 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 VOO?
On 3 years of weekly data the SCHD/VOO correlation comes out at 0.59, moderate. The link has loosened recently: the 1-year correlation (0.19) runs below the 3-year figure (0.59). The 5-year figure is 0.75, and annualized covariance runs at 108.9 %².
By 3-year correlation, VOO places #42 of the 108 assets tracked against SCHD. The trailing year gives SCHD the advantage: +29.6% versus +20.6%, a 9.0-point spread. Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from 0.22 to 0.89.
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 VOO: side by side
| SCHD (Schwab US Dividend Equity ETF) | VOO (Vanguard S&P 500 ETF) | |
|---|---|---|
| 1-year return | +29.6% | +20.6% |
| 5-year return | +60.9% | +83.0% |
| Volatility (ann.) | 12.9% | 14.4% |
| Beta vs S&P 500 | 0.52 | 0.99 |
| Max drawdown (3Y) | -16.1% | -18.7% |
| Dividend yield | 3.13% | 1.07% |
| Expense ratio | 0.06% | 0.03% |
| Assets under management | $104.2B | $1,686.9B |
| Sector / category | ETF · Dividend | ETF · US Large Cap |
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. VOO, Vanguard's Large Blend fund, carries $1,686.9B under management, 503 holdings, a 0.03% expense ratio, a 1.07% trailing dividend yield.
Portfolio overlap between SCHD and VOO
The two portfolios are largely distinct. Weighing the shared positions, 8.0% of the two funds is identical, spread across 46 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in SCHD | Weight in VOO |
|---|---|---|
| UNH | 3.92% | 0.58% |
| CVX | 3.89% | 0.57% |
| KO | 4.22% | 0.53% |
| PG | 3.81% | 0.52% |
| HD | 3.94% | 0.51% |
| MRK | 4.92% | 0.50% |
| TXN | 3.13% | 0.39% |
| AMGN | 4.80% | 0.32% |
| VZ | 3.97% | 0.30% |
| PEP | 3.68% | 0.30% |
| ABT | 4.83% | 0.29% |
| QCOM | 2.41% | 0.24% |
| COP | 3.86% | 0.23% |
| BMY | 3.35% | 0.21% |
| LMT | 2.79% | 0.18% |
Largest positions held only by SCHD: EWBC (0.43%), DINO (0.36%), FNF (0.29%), WSO (0.27%), AFG (0.24%). Only by VOO: NVDA (7.56%), AAPL (7.05%), MSFT (5.37%), AMZN (4.13%), GOOGL (3.25%).
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 | VOO |
|---|---|---|
| 2022 | -3.3% | -18.2% |
| 2023 | +4.5% | +26.3% |
| 2024 | +11.7% | +25.0% |
| 2025 | +4.3% | +17.8% |
| 2026 | +29.1% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SCHD and VOO good diversifiers for each other?
To a limited degree. At 0.59 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 VOO?
Using weekly returns as of 2026-08-27: 0.59 over 3 years, with 0.19 over the last year and 0.75 over 5 years.
Is VOO a good diversifier for SCHD?
To a limited degree. At 0.59 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 VOO overlap?
8.0% by weight, across 46 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
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