OVL vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SCHD

Side-by-Side Comparison

MetricOVLSCHDWinner
Expense Ratio0.79%0.06%
AUM$347M$103.7B
Dividend Yield7.15%3.31%
Holdings9104
YTD Return+8.94%+25.58%
1Y Return+16.58%+31.06%
3Y Return (annualized)+20.44%+15.55%
5Y Return (annualized)+11.85%+9.61%
Volatility (annualized)19.0%13.6%
Max Drawdown-35.5%-33.4%
Fund FamilyOverlay SharesCharles Schwab Asset Management
CategoryEquityEquity
InceptionSep 30, 2019Oct 20, 2011

OVL vs SCHD Performance

Overlay Shares Large Cap Equity ETF (OVL) is a ETF from Overlay Shares and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year OVL returned +16.58% while SCHD returned +31.06%. Year to date, OVL is up 8.94% versus a gain of 25.58% for SCHD.

Over three years, OVL compounded at +20.44% per year against +15.55% for SCHD; over five years the annualized figures are +11.85% and +9.61% respectively. Across the full 7-year window we track, OVL has the edge at +16.52% annualized vs +11.46%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

OVL has been the more volatile fund, with annualized monthly volatility of 19.0% compared with 13.6% for SCHD. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -35.5% for OVL and -33.4% for SCHD. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.

The two funds' monthly returns correlate at 0.79. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

OVL charges 0.79% per year while SCHD charges 0.06%. On a $10,000 position that is $79 vs $6 annually, a gap of $73 per year that compounds over a long holding period. On income, OVL currently yields 7.15% against 3.31% for SCHD.

Holdings Overlap

0.0%overlap

OVL and SCHD share 0 holdings out of 102 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, OVL or SCHD?

OVL has an expense ratio of 0.79% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $73 per year of difference.

Which performed better, OVL or SCHD?

Over the past year OVL returned +16.58% vs +31.06% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (7 years), OVL annualized +16.52% vs +11.46% for SCHD. Past performance does not guarantee future results.

Which is riskier, OVL or SCHD?

OVL has been the more volatile fund at 19.0% annualized versus 13.6% for SCHD. Worst drawdown: OVL -35.5% vs SCHD -33.4%.

Should I hold both OVL and SCHD?

OVL and SCHD have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between OVL and SCHD?

OVL and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 102 unique securities.

Which pays a higher dividend, OVL or SCHD?

OVL yields 7.15% while SCHD yields 3.31%, so OVL currently pays the higher dividend yield.

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