SCHD vs VXZ: Correlation
Schwab US Dividend Equity ETF (SCHD) and iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) show a negative relationship: their 3-year correlation of weekly returns is -0.57.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SCHD and VXZ?
Over the past 3 years, SCHD and VXZ moved with a correlation of -0.57, which is negative, meaning they tend to move in opposite directions. Lately the two have moved closer together, with the 1-year correlation at -0.24 versus -0.57 over 3 years. Over 5 years the correlation is -0.60, and the annualized covariance of weekly returns is -189.0 %².
VXZ is close to the least connected end of SCHD's tracked universe, ranking #108 of 108. The last year tells two different stories: SCHD led by 45.7 percentage points, +29.6% for SCHD against -16.1% for VXZ. One caveat on sizing: VXZ is 2.0 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 VXZ: side by side
| SCHD (Schwab US Dividend Equity ETF) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +29.6% | -16.1% |
| 5-year return | +60.9% | -53.1% |
| Volatility (ann.) | 12.9% | 25.6% |
| Beta vs S&P 500 | 0.52 | -1.31 |
| Max drawdown (3Y) | -16.1% | -36.4% |
| Dividend yield | 3.13% | – |
| Expense ratio | 0.06% | – |
| Assets under management | $104.2B | – |
| Sector / category | ETF · Dividend | US Listed |
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.
Year-by-year returns
| Year | SCHD | VXZ |
|---|---|---|
| 2022 | -3.3% | +0.5% |
| 2023 | +4.5% | -44.0% |
| 2024 | +11.7% | -12.7% |
| 2025 | +4.3% | +5.7% |
| 2026 | +29.1% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SCHD and VXZ good diversifiers for each other?
Yes: at -0.57, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between SCHD and VXZ?
The SCHD/VXZ correlation stands at -0.57 on a 3-year window (1 year: -0.24, 5 years: -0.60), computed from weekly returns as of 2026-08-27.
Is VXZ a good diversifier for SCHD?
Yes: at -0.57, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.57 mean?
A reading of -0.57 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/schd-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/schd-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: SCHD correlations · VXZ correlations
