SCHW vs SPY: Correlation
Charles Schwab Corporation (SCHW) and SPDR S&P 500 ETF Trust (SPY) show a moderate relationship: their 3-year correlation of weekly returns is 0.48.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SCHW and SPY?
Over the past 3 years, SCHW and SPY moved with a correlation of 0.48, which is moderate. Lately the two have drifted apart, with the 1-year correlation at 0.24 versus 0.48 over 3 years. Over 5 years the correlation is 0.53, and the annualized covariance of weekly returns is 193.5 %².
Within SCHW's tracked universe of 27 assets, SPY comes in at #16 by 3-year correlation. The trailing year gives SPY the advantage: +13.0% versus +20.6%, a 7.6-point spread. The relationship is regime-dependent: the rolling one-year correlation swung between 0.20 and 0.76 over the past three years, so this pair behaves very differently depending on the market environment. One caveat on sizing: SCHW is 1.9 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.
SCHW vs SPY: side by side
| SCHW (Charles Schwab Corporation) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +13.0% | +20.6% |
| 5-year return | +57.3% | +82.4% |
| Volatility (ann.) | 27.8% | 14.5% |
| Beta vs S&P 500 | 0.93 | 1.00 |
| Max drawdown (3Y) | -21.4% | -18.8% |
| Market cap | $186.9B | – |
| P/E (trailing) | 19.9 | – |
| Dividend yield | 1.08% | 1.01% |
| Expense ratio | – | 0.09% |
| Assets under management | – | $795.3B |
| Sector / category | Financials | ETF · US Large Cap |
SPY is a Large Blend fund from State Street Investment Management: $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% trailing dividend yield.
Year-by-year returns
| Year | SCHW | SPY |
|---|---|---|
| 2022 | +0.1% | -18.2% |
| 2023 | -16.0% | +26.2% |
| 2024 | +9.2% | +24.9% |
| 2025 | +36.6% | +17.7% |
| 2026 | +9.2% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that SPY holds SCHW at a 0.27% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are SCHW and SPY good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.48 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between SCHW and SPY?
The SCHW/SPY correlation stands at 0.48 on a 3-year window (1 year: 0.24, 5 years: 0.53), computed from weekly returns as of 2026-08-27.
Is SPY a good diversifier for SCHW?
Yes, to a useful degree: a correlation of 0.48 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.48 mean?
On the −1 to +1 scale, 0.48 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
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Related comparisons
Hubs: SCHW correlations · SPY correlations
