OVL vs VYM
Overlay Shares Large Cap Equity ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | OVL | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.79% | 0.04% | |
| AUM | $347M | $79.0B | |
| Dividend Yield | 7.15% | 2.86% | |
| Holdings | 9 | 568 | |
| YTD Return | +9.74% | +16.78% | |
| 1Y Return | +16.98% | +24.43% | |
| 3Y Return (annualized) | +20.71% | +18.60% | |
| 5Y Return (annualized) | +12.00% | +12.30% | |
| Volatility (annualized) | 19.0% | 14.6% | |
| Max Drawdown | -35.5% | -58.8% | |
| Fund Family | Overlay Shares | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 30, 2019 | Nov 10, 2006 |
OVL vs VYM Performance
Overlay Shares Large Cap Equity ETF (OVL) is a ETF from Overlay Shares and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year OVL returned +16.98% while VYM returned +24.43%. Year to date, OVL is up 9.74% versus a gain of 16.78% for VYM.
Over three years, OVL compounded at +20.71% per year against +18.60% for VYM; over five years the annualized figures are +12.00% and +12.30% respectively. Across the full 7-year window we track, OVL has the edge at +16.64% annualized vs +7.11%. 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 14.6% for VYM. 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 -58.8% for VYM. 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 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
OVL charges 0.79% per year while VYM charges 0.04%. On a $10,000 position that is $79 vs $4 annually, a gap of $75 per year that compounds over a long holding period. On income, OVL currently yields 7.15% against 2.86% for VYM.
Holdings Overlap
OVL and VYM share 0 holdings out of 560 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 VYM?
OVL has an expense ratio of 0.79% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $75 per year of difference.
Which performed better, OVL or VYM?
Over the past year OVL returned +16.98% vs +24.43% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (7 years), OVL annualized +16.64% vs +7.11% for VYM. Past performance does not guarantee future results.
Which is riskier, OVL or VYM?
OVL has been the more volatile fund at 19.0% annualized versus 14.6% for VYM. Worst drawdown: OVL -35.5% vs VYM -58.8%.
Should I hold both OVL and VYM?
OVL and VYM have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between OVL and VYM?
OVL and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 560 unique securities.
Which pays a higher dividend, OVL or VYM?
OVL yields 7.15% while VYM yields 2.86%, so OVL currently pays the higher dividend yield.
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