SCHD vs XLRE: Correlation & Overlap
Schwab US Dividend Equity ETF (SCHD) and Real Estate Select Sector SPDR Fund (XLRE) show a strong relationship: their 3-year correlation of weekly returns is 0.69. By holdings, the two funds overlap 0% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SCHD and XLRE?
On 3 years of weekly data the SCHD/XLRE correlation comes out at 0.69, strong. The past 12 months show a weaker link (0.53) than the 3-year average (0.69). The 5-year figure is 0.74, and annualized covariance runs at 148.2 %².
Within SCHD's tracked universe of 108 assets, XLRE comes in at #21 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months SCHD outperformed by 20.1 percentage points (+29.6% for SCHD against +9.5% for XLRE). The rolling one-year correlation moved between 0.54 and 0.82 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 XLRE: side by side
| SCHD (Schwab US Dividend Equity ETF) | XLRE (Real Estate Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +29.6% | +9.5% |
| 5-year return | +60.9% | +11.4% |
| Volatility (ann.) | 12.9% | 16.7% |
| Beta vs S&P 500 | 0.52 | 0.57 |
| Max drawdown (3Y) | -16.1% | -16.6% |
| Dividend yield | 3.13% | 3.12% |
| Expense ratio | 0.06% | 0.08% |
| Assets under management | $104.2B | $8.6B |
| 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, XLRE sits in the Real Estate category at State Street Investment Management, with $8.6B under management, 31 holdings, a 0.08% expense ratio, a 3.12% trailing dividend yield.
Portfolio overlap between SCHD and XLRE
The two portfolios are largely distinct: 0% of the funds' weight sits in the same underlying holdings (0 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 XLRE: WELL (11.43%), PLD (9.06%), EQIX (7.14%), AMT (5.49%), DLR (5.01%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26.
Year-by-year returns
| Year | SCHD | XLRE |
|---|---|---|
| 2022 | -3.3% | -26.2% |
| 2023 | +4.5% | +12.4% |
| 2024 | +11.7% | +5.1% |
| 2025 | +4.3% | +2.6% |
| 2026 | +29.1% | +12.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SCHD and XLRE good diversifiers for each other?
Somewhat, no more. With 0.69 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between SCHD and XLRE?
The SCHD/XLRE correlation stands at 0.69 on a 3-year window (1 year: 0.53, 5 years: 0.74), computed from weekly returns as of 2026-08-27.
Is XLRE a good diversifier for SCHD?
Somewhat, no more. With 0.69 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do SCHD and XLRE overlap?
0% by weight, across 0 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-xlre.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/schd-vs-xlre/)
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Related comparisons
Hubs: SCHD correlations · XLRE correlations
