OVS vs VYM
Overlay Shares Small Cap Equity ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. OVS delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | OVS | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.83% | 0.04% | |
| AUM | $35M | $79.0B | |
| Dividend Yield | 6.98% | 2.86% | |
| Holdings | 10 | 568 | |
| YTD Return | +18.33% | +16.53% | |
| 1Y Return | +25.69% | +25.03% | |
| 3Y Return (annualized) | +14.20% | +18.54% | |
| 5Y Return (annualized) | +6.23% | +12.25% | |
| Volatility (annualized) | 23.9% | 14.6% | |
| Max Drawdown | -45.1% | -58.8% | |
| Fund Family | Overlay Shares | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 30, 2019 | Nov 10, 2006 |
OVS vs VYM Performance
Overlay Shares Small Cap Equity ETF (OVS) is a ETF from Overlay Shares and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year OVS returned +25.69% while VYM returned +25.03%. Year to date, OVS is up 18.33% versus a gain of 16.53% for VYM.
Over three years, OVS compounded at +14.20% per year against +18.54% for VYM; over five years the annualized figures are +6.23% and +12.25% respectively. Across the full 7-year window we track, OVS has the edge at +11.50% annualized vs +7.10%. 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 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 -45.1% for OVS 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 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
OVS charges 0.83% per year while VYM charges 0.04%. On a $10,000 position that is $83 vs $4 annually, a gap of $79 per year that compounds over a long holding period. On income, OVS currently yields 6.98% against 2.86% for VYM.
Holdings Overlap
OVS 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, OVS or VYM?
OVS has an expense ratio of 0.83% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $79 per year of difference.
Which performed better, OVS or VYM?
Over the past year OVS returned +25.69% vs +25.03% for VYM, so OVS leads on 1-year performance. Over the longest common window we track (7 years), OVS annualized +11.50% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, OVS or VYM?
OVS has been the more volatile fund at 23.9% annualized versus 14.6% for VYM. Worst drawdown: OVS -45.1% vs VYM -58.8%.
Should I hold both OVS and VYM?
OVS and VYM have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between OVS and VYM?
OVS and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 560 unique securities.
Which pays a higher dividend, OVS or VYM?
OVS yields 6.98% while VYM yields 2.86%, so OVS currently pays the higher dividend yield.
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