SCHD vs VT: Correlation & Overlap
How closely do Schwab US Dividend Equity ETF (SCHD) and Vanguard Total World Stock ETF (VT) trade together? Their weekly returns over three years give a correlation of 0.63, which is strong. By holdings, the two funds overlap 5.1% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SCHD and VT?
Across a 3-year window, the weekly returns of SCHD and VT correlate at 0.63, strong. The past 12 months show a weaker link (0.29) than the 3-year average (0.63). Stretching to 5 years gives 0.76, with an annualized covariance of 113.0 %².
By 3-year correlation, VT places #27 of the 108 assets tracked against SCHD. On 12-month performance SCHD holds a 6.9-point edge, +29.6% against +22.7%. Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from 0.32 to 0.90.
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 VT: side by side
| SCHD (Schwab US Dividend Equity ETF) | VT (Vanguard Total World Stock ETF) | |
|---|---|---|
| 1-year return | +29.6% | +22.7% |
| 5-year return | +60.9% | +67.7% |
| Volatility (ann.) | 12.9% | 13.9% |
| Beta vs S&P 500 | 0.52 | 0.92 |
| Max drawdown (3Y) | -16.1% | -16.5% |
| Dividend yield | 3.13% | 1.59% |
| Expense ratio | 0.06% | 0.06% |
| Assets under management | $104.2B | $97.9B |
| Sector / category | ETF · Dividend | ETF · Global |
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. VT is a Global Large-Stock Blend fund from Vanguard: $97.9B under management, 5308 holdings, a 0.06% expense ratio, a 1.59% trailing dividend yield.
Portfolio overlap between SCHD and VT
The two portfolios are largely distinct, with 80 holdings in common adding up to 5.1% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in SCHD | Weight in VT |
|---|---|---|
| UNH | 3.92% | 0.34% |
| CVX | 3.89% | 0.33% |
| MRK | 4.92% | 0.31% |
| KO | 4.22% | 0.30% |
| PG | 3.81% | 0.30% |
| HD | 3.94% | 0.30% |
| TXN | 3.13% | 0.22% |
| AMGN | 4.80% | 0.19% |
| ALV | 0.21% | 0.18% |
| VZ | 3.97% | 0.18% |
| PEP | 3.68% | 0.17% |
| ABT | 4.83% | 0.16% |
| QCOM | 2.41% | 0.14% |
| COP | 3.86% | 0.13% |
| MC | 0.12% | 0.13% |
Largest positions held only by SCHD: ERIE (0.16%), FHI (0.11%), OFG (0.05%), AGM (0.05%), GABC (0.05%). Only by VT: NVDA (4.20%), AAPL (4.00%), MSFT (3.09%), AMZN (2.36%), GOOGL (1.89%).
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 | VT |
|---|---|---|
| 2022 | -3.3% | -18.0% |
| 2023 | +4.5% | +22.0% |
| 2024 | +11.7% | +16.5% |
| 2025 | +4.3% | +22.4% |
| 2026 | +29.1% | +15.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SCHD and VT good diversifiers for each other?
Somewhat, no more. With 0.63 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between SCHD and VT?
Using weekly returns as of 2026-08-27: 0.63 over 3 years, with 0.29 over the last year and 0.76 over 5 years.
Is VT a good diversifier for SCHD?
Somewhat, no more. With 0.63 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do SCHD and VT overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 5.1% by weight over 80 common positions.
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