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    How correlated are dividend ETFs?

    Dividend ETFs use different selection rules, yet their monthly returns can move together. Correlation measures their return relationship, not the percentage of shared holdings.

    Measured example

    Yahoo adjusted-close monthly returns, dividends reinvested; 2014-07-01 to 2026-09-01, 146 common monthly returns. Nominal figures. Derived from preserved real observations by the shared calculation code at build time.

    PairCorrelation
    SCHD / VYM0.9614
    SCHD / DGRO0.9475
    SCHD / VIG0.9021
    SCHD / HDV0.9373
    SCHD / NOBL0.9321
    VYM / DGRO0.9775
    VYM / VIG0.9380
    VYM / HDV0.9315
    VYM / NOBL0.9416
    DGRO / VIG0.9754
    DGRO / HDV0.8981
    DGRO / NOBL0.9607
    VIG / HDV0.8371
    VIG / NOBL0.9415
    HDV / NOBL0.9011

    For the illustrative mix (SCHD 16.7%, VYM 16.7%, DGRO 16.7%, VIG 16.7%, HDV 16.7%, NOBL 16.7%), monthly rebalancing produced historical CAGR 11.01%, volatility 13.43% and measured monthly maximum drawdown 22.25%. These are observations, not expected future results.

    Correlation = covariance of monthly returns ÷ (standard deviation of each series). Fund-category overlap is qualitative; exact overlapping weights and shared holdings are not measured here.

    Calculation details and worked example

    Check your own holdings

    For educational purposes only. Not investment advice. Past performance does not guarantee future results.