OVS vs SCHD
Overlay Shares Small Cap Equity ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 104 holdings.
Side-by-Side Comparison
| Metric | OVS | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.83% | 0.06% | |
| AUM | $35M | $103.7B | |
| Dividend Yield | 6.98% | 3.31% | |
| Holdings | 10 | 104 | |
| YTD Return | +18.79% | +26.21% | |
| 1Y Return | +23.45% | +29.99% | |
| 3Y Return (annualized) | +14.34% | +15.73% | |
| 5Y Return (annualized) | +6.48% | +9.67% | |
| Volatility (annualized) | 23.9% | 13.6% | |
| Max Drawdown | -45.1% | -33.4% | |
| Fund Family | Overlay Shares | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Sep 30, 2019 | Oct 20, 2011 |
OVS vs SCHD Performance
Overlay Shares Small Cap Equity ETF (OVS) 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 OVS returned +23.45% while SCHD returned +29.99%. Year to date, OVS is up 18.79% versus a gain of 26.21% for SCHD.
Over three years, OVS compounded at +14.34% per year against +15.73% for SCHD; over five years the annualized figures are +6.48% and +9.67% respectively. Across the full 7-year window we track, OVS has the edge at +11.56% annualized vs +11.50%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
OVS has been the more volatile fund, with annualized monthly volatility of 23.9% 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 -45.1% for OVS 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
OVS charges 0.83% per year while SCHD charges 0.06%. On a $10,000 position that is $83 vs $6 annually, a gap of $77 per year that compounds over a long holding period. On income, OVS currently yields 6.98% against 3.31% for SCHD.
Holdings Overlap
OVS 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, OVS or SCHD?
OVS has an expense ratio of 0.83% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $77 per year of difference.
Which performed better, OVS or SCHD?
Over the past year OVS returned +23.45% vs +29.99% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (7 years), OVS annualized +11.56% vs +11.50% for SCHD. Past performance does not guarantee future results.
Which is riskier, OVS or SCHD?
OVS has been the more volatile fund at 23.9% annualized versus 13.6% for SCHD. Worst drawdown: OVS -45.1% vs SCHD -33.4%.
Should I hold both OVS and SCHD?
OVS and SCHD have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between OVS and SCHD?
OVS and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 102 unique securities.
Which pays a higher dividend, OVS or SCHD?
OVS yields 6.98% while SCHD yields 3.31%, so OVS currently pays the higher dividend yield.
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