SCHD vs VYM: Correlation & Overlap
How closely do Schwab US Dividend Equity ETF (SCHD) and Vanguard High Dividend Yield ETF (VYM) trade together? Their weekly returns over three years give a correlation of 0.88, which is very strong. By holdings, the two funds overlap 21.5% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SCHD and VYM?
On 3 years of weekly data the SCHD/VYM correlation comes out at 0.88, very strong, meaning they move nearly in lockstep. Lately the two have drifted apart, with the 1-year correlation at 0.71 versus 0.88 over 3 years. The 5-year figure is 0.93, and annualized covariance runs at 138.8 %².
VYM is one of the assets that tracks SCHD most closely: it ranks #3 out of the 108 assets we track against SCHD. Over the last 12 months SCHD came out ahead by 8.5 percentage points (+29.6% against +21.1%). The link looks structural: the rolling one-year correlation barely moved, holding between 0.74 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 VYM: side by side
| SCHD (Schwab US Dividend Equity ETF) | VYM (Vanguard High Dividend Yield ETF) | |
|---|---|---|
| 1-year return | +29.6% | +21.1% |
| 5-year return | +60.9% | +76.6% |
| Volatility (ann.) | 12.9% | 12.3% |
| Beta vs S&P 500 | 0.52 | 0.69 |
| Max drawdown (3Y) | -16.1% | -14.5% |
| Dividend yield | 3.13% | 2.24% |
| Expense ratio | 0.06% | 0.04% |
| Assets under management | $104.2B | $99.2B |
| Sector / category | ETF · Dividend | ETF · Dividend |
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. VYM, Vanguard's Large Value fund, carries $99.2B under management, 604 holdings, a 0.04% expense ratio, a 2.24% trailing dividend yield.
Portfolio overlap between SCHD and VYM
The two portfolios partially overlap: 21.5% of the funds' weight sits in the same underlying holdings (80 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in SCHD | Weight in VYM |
|---|---|---|
| UNH | 3.92% | 1.52% |
| CVX | 3.89% | 1.49% |
| KO | 4.22% | 1.39% |
| PG | 3.81% | 1.37% |
| HD | 3.94% | 1.35% |
| MRK | 4.92% | 1.31% |
| TXN | 3.13% | 1.02% |
| VZ | 3.97% | 0.80% |
| AMGN | 4.80% | 0.78% |
| PEP | 3.68% | 0.78% |
| ABT | 4.83% | 0.75% |
| QCOM | 2.41% | 0.63% |
| COP | 3.86% | 0.60% |
| BMY | 3.35% | 0.54% |
| LMT | 2.79% | 0.48% |
Largest positions held only by SCHD: ERIE (0.16%), FHI (0.11%), OFG (0.05%), AGM (0.05%), GABC (0.05%). Only by VYM: AVGO (7.37%), JPM (3.83%), XOM (2.63%), JNJ (2.51%), CSCO (1.87%).
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 | VYM |
|---|---|---|
| 2022 | -3.3% | -0.4% |
| 2023 | +4.5% | +6.6% |
| 2024 | +11.7% | +17.6% |
| 2025 | +4.3% | +15.4% |
| 2026 | +29.1% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SCHD and VYM good diversifiers for each other?
Not really. At 0.88, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between SCHD and VYM?
As of 2026-08-27, the correlation of weekly returns between SCHD and VYM is 0.88 over 3 years, 0.71 over 1 year and 0.93 over 5 years.
Is VYM a good diversifier for SCHD?
Not really. At 0.88, the two trade almost as one position, and owning both buys little extra protection.
How much do SCHD and VYM overlap?
The two funds share 80 holdings amounting to 21.5% of weight, per issuer portfolio files dated 2026-08-26.
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