Overlapping ETFs as a good investment strategy?

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​ I see SCHD + VYM and VOO + VTI recommended constantly as "diversified portfolios" and it's just not true. 86% of SCHD's holdings are also in VYM, and their correlation is 0.95, meaning they move in lockstep. VOO and VTI is even worse, 0.99 correlation, because VTI is literally VOO plus a thin 15% layer of small and mid caps. You're not diversifying, you're paying two expense ratios to own the same 30 mega-caps twice. Real diversification means uncorrelated assets, like adding VXUS for internat