SCHG vs XLB: 1% overlap
Schwab U.S. Large-Cap Growth ETF and Materials Select Sector SPDR Fund share 0.5% of their portfolios by weight — computed as Σ min(wA, wB) over every holding both funds own.
Different holding dates. These holdings were published about 2 months apart — SCHG as of 2026-05-31, the rest through 2026-07-23. Each fund is compared using its most recent file, so any trading in between shows up as a difference.
You would hold two tickers and get the diversification of 2.0. Two funds that shared nothing would score 2.0; two identical funds score 1.0.
Top shared holdings
SCHG and XLB hold 4 of the same securities. The ten contributing most to the overlap figure:
| Holding | in SCHG | in XLB | Δ |
|---|---|---|---|
| SHW | 0.2% | 4.5% | 4.3% |
| VMC | 0.1% | 4.4% | 4.3% |
| MLM | 0.1% | 4.4% | 4.2% |
| CASH | 0.1% | 0.1% | 0.1% |
Where SCHG and XLB differ
Sector weights as a share of each fund, ordered by the size of the gap rather than the size of the sector — two funds that overlap heavily still usually diverge somewhere.
| Sector | SCHG | XLB | Δ |
|---|---|---|---|
| Materials | 0.6% | 99.8% | −99.2pp |
| Information Technology | 46.1% | 0.0% | +46.1pp |
| Communication Services | 14.7% | 0.0% | +14.7pp |
| Consumer Discretionary | 12.1% | 0.0% | +12.1pp |
| Health Care | 8.3% | 0.0% | +8.3pp |
| Financials | 6.8% | 0.0% | +6.8pp |
| Industrials | 6.0% | 0.0% | +6.0pp |
| Unclassified | 1.9% | 0.0% | +1.9pp |
Δ is SCHG minus XLB, in percentage points. Sector data is not published by every issuer, so “Unclassified” is a real category rather than a gap in the table.
What each fund holds alone
99.4% of SCHG by weight, held in no part of XLB.
86.5% of XLB by weight, held in no part of SCHG.
A large count with a small weight is the usual shape: the positions one fund adds are typically its smallest ones.
Concentration and cost
| SCHG | XLB | |
|---|---|---|
| Top 10 holdings | 57.2% | 57.4% |
| Positions held | 195 | 28 |
| Cost per $10,000 held, per year | $4 | $8 |
Cost is the expense ratio applied to $10,000; it excludes any brokerage commission, bid-ask spread or tax consequence. Figures are facts about the funds, not a suggestion about which to hold.
Frequently asked
How much do SCHG and XLB overlap?
SCHG and XLB overlap 0.5% by portfolio weight — largely distinct portfolios. They share 4 holdings. The figure comes from current issuer holdings files (SCHG as of 2026-05-31, XLB as of 2026-07-23).
How is the overlap between SCHG and XLB calculated?
As the sum of the smaller weight in each fund, over every holding both funds own: Σ min(wA, wB). If SCHG holds a stock at 6% and XLB holds the same stock at 4%, 4% counts as shared. The result is bounded between 0% and 100%, and it is computed after looking through any fund-of-funds to the underlying holdings.
Is it redundant to hold both SCHG and XLB?
That depends on your goals — we state facts, not advice. At 0.5% overlap, each fund still contributes meaningfully distinct exposure.
What does SCHG own that XLB doesn't?
SCHG holds 195 positions and XLB holds 28; 190 of SCHG's positions don't appear in XLB at all, and they are 99.4% of SCHG by weight.
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Related comparisons
Sources: issuer holdings files, SCHG as of 2026-05-31, XLB as of 2026-07-23. Weights are fractions of each fund. Diagnostics, not advice.