SCHD vs VTV: Correlation & Overlap
How closely do Schwab US Dividend Equity ETF (SCHD) and Vanguard Value ETF (VTV) trade together? Their weekly returns over three years give a correlation of 0.88, which is very strong. Looking through to holdings, 17.8% 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 VTV?
On 3 years of weekly data the SCHD/VTV correlation comes out at 0.88, very strong, meaning they move nearly in lockstep. The link has loosened recently: the 1-year correlation (0.72) runs below the 3-year figure (0.88). The 5-year figure is 0.93, and annualized covariance runs at 135.4 %².
Few assets follow SCHD as closely as VTV, which ranks #2 of 108 tracked partners. Their 12-month results are close: +29.6% for SCHD against +25.7% for VTV. The link looks structural: the rolling one-year correlation barely moved, holding between 0.75 and 0.97.
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 VTV: side by side
| SCHD (Schwab US Dividend Equity ETF) | VTV (Vanguard Value ETF) | |
|---|---|---|
| 1-year return | +29.6% | +25.7% |
| 5-year return | +60.9% | +79.1% |
| Volatility (ann.) | 12.9% | 11.9% |
| Beta vs S&P 500 | 0.52 | 0.65 |
| Max drawdown (3Y) | -16.1% | -14.5% |
| Dividend yield | 3.13% | 1.86% |
| Expense ratio | 0.06% | 0.03% |
| Assets under management | $104.2B | $256.4B |
| Sector / category | ETF · Dividend | ETF · US Style |
SCHD is a Large Value fund from Schwab ETFs: $104.2B under management, 101 holdings, a 0.06% expense ratio, a 3.13% trailing dividend yield. On the fund side, VTV sits in the Large Value category at Vanguard, with $256.4B under management, 308 holdings, a 0.03% expense ratio, a 1.86% trailing dividend yield.
Portfolio overlap between SCHD and VTV
The two portfolios partially overlap: 17.8% of the funds' weight sits in the same underlying holdings (40 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in SCHD | Weight in VTV |
|---|---|---|
| UNH | 3.92% | 1.40% |
| CVX | 3.89% | 1.39% |
| PG | 3.81% | 1.25% |
| HD | 3.94% | 1.23% |
| MRK | 4.92% | 1.20% |
| KO | 4.22% | 1.12% |
| AMGN | 4.80% | 0.77% |
| PEP | 3.68% | 0.71% |
| ABT | 4.83% | 0.69% |
| VZ | 3.97% | 0.66% |
| QCOM | 2.41% | 0.58% |
| COP | 3.86% | 0.55% |
| LMT | 2.79% | 0.50% |
| BMY | 3.35% | 0.50% |
| TXN | 3.13% | 0.47% |
Largest positions held only by SCHD: FAST (1.43%), ARES (0.73%), EWBC (0.43%), BBY (0.42%), DINO (0.36%). Only by VTV: JPM (3.51%), MU (3.46%), BRK.B (2.99%), XOM (2.40%), JNJ (2.30%).
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 | VTV |
|---|---|---|
| 2022 | -3.3% | -2.1% |
| 2023 | +4.5% | +9.3% |
| 2024 | +11.7% | +16.0% |
| 2025 | +4.3% | +15.3% |
| 2026 | +29.1% | +19.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SCHD and VTV good diversifiers for each other?
No: a correlation of 0.88 means SCHD and VTV tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between SCHD and VTV?
Using weekly returns as of 2026-08-27: 0.88 over 3 years, with 0.72 over the last year and 0.93 over 5 years.
Is VTV a good diversifier for SCHD?
No: a correlation of 0.88 means SCHD and VTV tend to fall together, which is precisely when diversification is supposed to help.
How much do SCHD and VTV overlap?
The two funds share 40 holdings amounting to 17.8% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
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Related comparisons
Hubs: SCHD correlations · VTV correlations
