OVT vs VYM
Overlay Shares Short Term Bond 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 616 holdings.
Side-by-Side Comparison
| Metric | OVT | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.79% | 0.04% | |
| AUM | $62M | $81.6B | |
| Dividend Yield | 7.08% | 2.24% | |
| Holdings | 11 | 616 | |
| YTD Return | -0.59% | +15.60% | |
| 1Y Return | +0.32% | +23.48% | |
| 3Y Return (annualized) | +5.55% | +19.07% | |
| 5Y Return (annualized) | +1.76% | +12.50% | |
| Volatility (annualized) | 5.1% | 14.6% | |
| Max Drawdown | -13.6% | -58.8% | |
| Fund Family | Overlay Shares | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jan 14, 2021 | Nov 10, 2006 |
OVT vs VYM Performance
Overlay Shares Short Term Bond ETF (OVT) is a ETF from Overlay Shares and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year OVT returned +0.32% while VYM returned +23.48%. Year to date, OVT is down 0.59% versus a gain of 15.60% for VYM.
Over three years, OVT compounded at +5.55% per year against +19.07% for VYM; over five years the annualized figures are +1.76% and +12.50% respectively. Across the full 6-year window we track, VYM has the edge at +7.05% annualized vs +1.96%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 5.1% for OVT. 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 -13.6% for OVT 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
OVT 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, OVT currently yields 7.08% against 2.24% for VYM.
Holdings Overlap
OVT and VYM share 0 holdings out of 605 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, OVT or VYM?
OVT 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, OVT or VYM?
Over the past year OVT returned +0.32% vs +23.48% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (6 years), OVT annualized +1.96% vs +7.05% for VYM. Past performance does not guarantee future results.
Which is riskier, OVT or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 5.1% for OVT. Worst drawdown: OVT -13.6% vs VYM -58.8%.
Should I hold both OVT and VYM?
OVT and VYM have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between OVT and VYM?
OVT and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 605 unique securities.
Which pays a higher dividend, OVT or VYM?
OVT yields 7.08% while VYM yields 2.24%, so OVT currently pays the higher dividend yield.
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