SCHD vs VUG: Correlation & Overlap
Measured on weekly returns over the past three years, Schwab US Dividend Equity ETF (SCHD) and Vanguard Growth ETF (VUG) carry a correlation of 0.36, a moderate link. The two funds also share 0.8% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SCHD and VUG?
Over the past 3 years, SCHD and VUG moved with a correlation of 0.36, which is moderate. Lately the two have drifted apart, with the 1-year correlation at -0.05 versus 0.36 over 3 years. Over 5 years the correlation is 0.56, and the annualized covariance of weekly returns is 90.2 %².
Among the 108 assets we track against SCHD, VUG ranks #96 by 3-year correlation. Over the last 12 months SCHD came out ahead by 13.4 percentage points (+29.6% against +16.2%). This link changes with the market regime, having swung between -0.03 and 0.71 on a rolling one-year basis. One caveat on sizing: VUG is 1.5 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 VUG: side by side
| SCHD (Schwab US Dividend Equity ETF) | VUG (Vanguard Growth ETF) | |
|---|---|---|
| 1-year return | +29.6% | +16.2% |
| 5-year return | +60.9% | +78.4% |
| Volatility (ann.) | 12.9% | 19.4% |
| Beta vs S&P 500 | 0.52 | 1.28 |
| Max drawdown (3Y) | -16.1% | -22.8% |
| Dividend yield | 3.13% | 0.40% |
| Expense ratio | 0.06% | 0.03% |
| Assets under management | $104.2B | $372.0B |
| 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. VUG, Vanguard's Large Growth fund, carries $372.0B under management, 146 holdings, a 0.03% expense ratio, a 0.40% trailing dividend yield.
Portfolio overlap between SCHD and VUG
The two portfolios are largely distinct, with 4 holdings in common adding up to 0.8% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
Largest positions held only by SCHD: MRK (4.92%), ABT (4.83%), AMGN (4.80%), KO (4.22%), VZ (3.97%). Only by VUG: NVDA (12.84%), AAPL (12.63%), MSFT (9.61%), GOOGL (5.81%), AMZN (5.16%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 4 common positions shown.
Year-by-year returns
| Year | SCHD | VUG |
|---|---|---|
| 2022 | -3.3% | -33.2% |
| 2023 | +4.5% | +46.8% |
| 2024 | +11.7% | +32.7% |
| 2025 | +4.3% | +19.4% |
| 2026 | +29.1% | +9.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SCHD and VUG good diversifiers for each other?
A fair diversifier. At 0.36, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between SCHD and VUG?
Using weekly returns as of 2026-08-27: 0.36 over 3 years, with -0.05 over the last year and 0.56 over 5 years.
Is VUG a good diversifier for SCHD?
A fair diversifier. At 0.36, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
How much do SCHD and VUG overlap?
0.8% by weight, across 4 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/schd-vs-vug.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/schd-vs-vug/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: SCHD correlations · VUG correlations
