SCHD vs XLC: Correlation & Overlap
Schwab US Dividend Equity ETF (SCHD) and Communication Services Select Sector SPDR Fund (XLC) show a moderate relationship: their 3-year correlation of weekly returns is 0.42. Looking through to holdings, 6.3% 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 XLC?
On 3 years of weekly data the SCHD/XLC correlation comes out at 0.42, moderate. The link has loosened recently: the 1-year correlation (0.07) runs below the 3-year figure (0.42). The 5-year figure is 0.57, and annualized covariance runs at 85.3 %².
Among the 108 assets we track against SCHD, XLC ranks #79 by 3-year correlation. Correlation aside, the last 12 months split them widely, with SCHD ahead by 28.1 points (+29.6% versus +1.5%). This link changes with the market regime, having swung between 0.09 and 0.69 on a rolling one-year basis.
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 XLC: side by side
| SCHD (Schwab US Dividend Equity ETF) | XLC (Communication Services Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +29.6% | +1.5% |
| 5-year return | +60.9% | +37.5% |
| Volatility (ann.) | 12.9% | 16.0% |
| Beta vs S&P 500 | 0.52 | 0.90 |
| Max drawdown (3Y) | -16.1% | -18.0% |
| Dividend yield | 3.13% | 1.32% |
| Expense ratio | 0.06% | 0.08% |
| Assets under management | $104.2B | $21.7B |
| Sector / category | ETF · Dividend | Sector ETF |
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, XLC sits in the Communications category at State Street Investment Management, with $21.7B under management, 24 holdings, a 0.08% expense ratio, a 1.32% trailing dividend yield.
Portfolio overlap between SCHD and XLC
The two portfolios are largely distinct: 6.3% 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%), HD (3.94%). Only by XLC: META (16.73%), GOOGL (10.29%), GOOG (8.22%), T (5.20%), DIS (4.88%).
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 | XLC |
|---|---|---|
| 2022 | -3.3% | -37.6% |
| 2023 | +4.5% | +52.8% |
| 2024 | +11.7% | +34.7% |
| 2025 | +4.3% | +23.1% |
| 2026 | +29.1% | -4.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SCHD and XLC good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.42 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between SCHD and XLC?
Using weekly returns as of 2026-08-27: 0.42 over 3 years, with 0.07 over the last year and 0.57 over 5 years.
Is XLC a good diversifier for SCHD?
Yes, to a useful degree: a correlation of 0.42 leaves real independence between the two, which historically damped combined volatility.
How much do SCHD and XLC overlap?
The two funds share 2 holdings amounting to 6.3% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/schd-vs-xlc.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/schd-vs-xlc/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: SCHD correlations · XLC correlations
