Nothing wrong with SCHD, it has low correlation vs VXUS/VOO
I know SCHD has a cult following for the wrong reasons (dividend stocks are expected to outperform), but it has a decent diversification benefit. It has a large-value tilt and pretty low correlations (as far as stock ETFs go) with both VOO and VXUS.
With VOO getting increasingly heavy in growth stocks, I'm starting to rebalance my equity allocation to 40/20/40% VOO/SCHD/VXUS.
Data from 2011-2026:
| VOO | VXUS | SCHD | |
|---|---|---|---|
| VOO | 1 | .82 | .85 |
| VXUS | .82 | 1 | .77 |
| SCHD | .85 | .77 | 1 |
Posted May 13, 2026, 6:32 PM UTC
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