SCHD vs XLU: Correlation & Overlap
Schwab US Dividend Equity ETF (SCHD) and Utilities Select Sector SPDR Fund (XLU) show a moderate relationship: their 3-year correlation of weekly returns is 0.40. Looking through to holdings, 0% 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 XLU?
Over the past 3 years, SCHD and XLU moved with a correlation of 0.40, which is moderate. Lately the two have drifted apart, with the 1-year correlation at 0.19 versus 0.40 over 3 years. Over 5 years the correlation is 0.53, and the annualized covariance of weekly returns is 80.6 %².
Among the 108 assets we track against SCHD, XLU ranks #84 by 3-year correlation. Correlation aside, the last 12 months split them widely, with SCHD ahead by 25.5 points (+29.6% versus +4.1%). Across three years, the rolling one-year figure varied moderately, from 0.13 to 0.58.
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 XLU: side by side
| SCHD (Schwab US Dividend Equity ETF) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +29.6% | +4.1% |
| 5-year return | +60.9% | +46.3% |
| Volatility (ann.) | 12.9% | 15.8% |
| Beta vs S&P 500 | 0.52 | 0.26 |
| Max drawdown (3Y) | -16.1% | -13.1% |
| Dividend yield | 3.13% | 2.70% |
| Expense ratio | 0.06% | 0.08% |
| Assets under management | $104.2B | $23.1B |
| Sector / category | ETF · Dividend | Sector ETF |
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. XLU is an Utilities fund from State Street Investment Management: $23.1B under management, 31 holdings, a 0.08% expense ratio, a 2.70% trailing dividend yield.
Portfolio overlap between SCHD and XLU
The two portfolios are largely distinct, with 0 holdings in common adding up to 0% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
Largest positions held only by SCHD: MRK (4.92%), ABT (4.83%), AMGN (4.80%), KO (4.22%), VZ (3.97%). Only by XLU: NEE (12.94%), SO (7.45%), DUK (7.00%), CEG (6.58%), AEP (4.94%).
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 | XLU |
|---|---|---|
| 2022 | -3.3% | +1.4% |
| 2023 | +4.5% | -7.2% |
| 2024 | +11.7% | +23.3% |
| 2025 | +4.3% | +16.0% |
| 2026 | +29.1% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SCHD and XLU good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.40 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between SCHD and XLU?
As of 2026-08-27, the correlation of weekly returns between SCHD and XLU is 0.40 over 3 years, 0.19 over 1 year and 0.53 over 5 years.
Is XLU a good diversifier for SCHD?
Yes, to a useful degree: a correlation of 0.40 leaves real independence between the two, which historically damped combined volatility.
How much do SCHD and XLU 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-xlu.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/schd-vs-xlu/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: SCHD correlations · XLU correlations
