OVL vs SPY
Overlay Shares Large Cap Equity ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | OVL | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.79% | 0.09% | |
| AUM | $398M | $821.1B | |
| Dividend Yield | 7.41% | 1.01% | |
| Holdings | 11 | 505 | |
| YTD Return | +7.62% | +12.68% | |
| 1Y Return | +17.02% | +21.82% | |
| 3Y Return (annualized) | +20.92% | +21.98% | |
| 5Y Return (annualized) | +11.44% | +12.89% | |
| Volatility (annualized) | 19.0% | 15.3% | |
| Max Drawdown | -35.5% | -56.5% | |
| Fund Family | Overlay Shares | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Sep 30, 2019 | Jan 22, 1993 |
OVL vs SPY Performance
Overlay Shares Large Cap Equity ETF (OVL) is a ETF from Overlay Shares and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year OVL returned +17.02% while SPY returned +21.82%. Year to date, OVL is up 7.62% versus a gain of 12.68% for SPY.
Over three years, OVL compounded at +20.92% per year against +21.98% for SPY; over five years the annualized figures are +11.44% and +12.89% respectively. Across the full 7-year window we track, OVL has the edge at +16.25% annualized vs +8.81%. 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 15.3% for SPY. 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 -56.5% for SPY. 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 0.99. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
OVL charges 0.79% per year while SPY charges 0.09%. On a $10,000 position that is $79 vs $9 annually, a gap of $70 per year that compounds over a long holding period. On income, OVL currently yields 7.41% against 1.01% for SPY.
Holdings Overlap
OVL and SPY share 0 holdings out of 506 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 SPY?
OVL has an expense ratio of 0.79% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $70 per year of difference.
Which performed better, OVL or SPY?
Over the past year OVL returned +17.02% vs +21.82% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (7 years), OVL annualized +16.25% vs +8.81% for SPY. Past performance does not guarantee future results.
Which is riskier, OVL or SPY?
OVL has been the more volatile fund at 19.0% annualized versus 15.3% for SPY. Worst drawdown: OVL -35.5% vs SPY -56.5%.
Should I hold both OVL and SPY?
OVL and SPY have a monthly-return correlation of 0.99, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between OVL and SPY?
OVL and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 506 unique securities.
Which pays a higher dividend, OVL or SPY?
OVL yields 7.41% while SPY yields 1.01%, so OVL currently pays the higher dividend yield.
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