SCHD vs VWO: Correlation & Overlap
Measured on weekly returns over the past three years, Schwab US Dividend Equity ETF (SCHD) and Vanguard FTSE Emerging Markets ETF (VWO) carry a correlation of 0.44, a moderate link. By holdings, the two funds overlap 0.1% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SCHD and VWO?
Over the past 3 years, SCHD and VWO moved with a correlation of 0.44, which is moderate. Lately the two have drifted apart, with the 1-year correlation at 0.24 versus 0.44 over 3 years. Over 5 years the correlation is 0.48, and the annualized covariance of weekly returns is 85.2 %².
Among the 108 assets we track against SCHD, VWO ranks #76 by 3-year correlation. On 12-month performance SCHD holds a 8.0-point edge, +29.6% against +21.6%. The rolling one-year correlation moved between 0.27 and 0.70 over the past three years, a moderate range.
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 VWO: side by side
| SCHD (Schwab US Dividend Equity ETF) | VWO (Vanguard FTSE Emerging Markets ETF) | |
|---|---|---|
| 1-year return | +29.6% | +21.6% |
| 5-year return | +60.9% | +38.2% |
| Volatility (ann.) | 12.9% | 15.2% |
| Beta vs S&P 500 | 0.52 | 0.75 |
| Max drawdown (3Y) | -16.1% | -17.4% |
| Dividend yield | 3.13% | 2.36% |
| Expense ratio | 0.06% | 0.06% |
| Assets under management | $104.2B | $162.0B |
| Sector / category | ETF · Dividend | ETF · International |
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. On the fund side, VWO sits in the Diversified Emerging Mkts category at Vanguard, with $162.0B under management, 4113 holdings, a 0.06% expense ratio, a 2.36% trailing dividend yield.
Portfolio overlap between SCHD and VWO
The two portfolios are largely distinct: 0.1% of the funds' weight sits in the same underlying holdings (2 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 VWO: 2330 (18.65%), 700 (3.97%), 9988 (2.90%), 2454 (1.62%), 939 (1.07%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 2 common positions shown.
Year-by-year returns
| Year | SCHD | VWO |
|---|---|---|
| 2022 | -3.3% | -18.0% |
| 2023 | +4.5% | +9.3% |
| 2024 | +11.7% | +10.6% |
| 2025 | +4.3% | +25.6% |
| 2026 | +29.1% | +13.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SCHD and VWO good diversifiers for each other?
A fair diversifier. At 0.44, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between SCHD and VWO?
Using weekly returns as of 2026-08-27: 0.44 over 3 years, with 0.24 over the last year and 0.48 over 5 years.
Is VWO a good diversifier for SCHD?
A fair diversifier. At 0.44, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
How much do SCHD and VWO overlap?
0.1% by weight, across 2 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-vwo.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/schd-vs-vwo/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: SCHD correlations · VWO correlations
