OVM vs QQQ
Overlay Shares Municipal Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | OVM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.81% | 0.18% | |
| AUM | $45M | $496.3B | |
| Dividend Yield | 5.82% | 0.44% | |
| Holdings | 11 | 108 | |
| YTD Return | -0.72% | +16.64% | |
| 1Y Return | +3.52% | +27.27% | |
| 3Y Return (annualized) | +3.63% | +25.96% | |
| 5Y Return (annualized) | +0.18% | +14.54% | |
| Volatility (annualized) | 7.3% | 30.6% | |
| Max Drawdown | -21.1% | -83.0% | |
| Fund Family | Overlay Shares | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 30, 2019 | Mar 10, 1999 |
OVM vs QQQ Performance
Overlay Shares Municipal Bond ETF (OVM) is a ETF from Overlay Shares and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year OVM returned +3.52% while QQQ returned +27.27%. Year to date, OVM is down 0.72% versus a gain of 16.64% for QQQ.
Over three years, OVM compounded at +3.63% per year against +25.96% for QQQ; over five years the annualized figures are +0.18% and +14.54% respectively. Across the full 7-year window we track, QQQ has the edge at +13.03% annualized vs +1.77%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 7.3% for OVM. 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 -21.1% for OVM and -83.0% for QQQ. 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
OVM charges 0.81% per year while QQQ charges 0.18%. On a $10,000 position that is $81 vs $18 annually, a gap of $63 per year that compounds over a long holding period. On income, OVM currently yields 5.82% against 0.44% for QQQ.
Holdings Overlap
OVM and QQQ share 0 holdings out of 104 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, OVM or QQQ?
OVM has an expense ratio of 0.81% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $63 per year of difference.
Which performed better, OVM or QQQ?
Over the past year OVM returned +3.52% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (7 years), OVM annualized +1.77% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, OVM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 7.3% for OVM. Worst drawdown: OVM -21.1% vs QQQ -83.0%.
Should I hold both OVM and QQQ?
OVM and QQQ have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between OVM and QQQ?
OVM and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.
Which pays a higher dividend, OVM or QQQ?
OVM yields 5.82% while QQQ yields 0.44%, so OVM currently pays the higher dividend yield.
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