OVB vs VYM
OVB vs VYM
Overlay Shares Core 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 558 holdings.
Side-by-Side Comparison
| Metric | OVB | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.79% | 0.04% | |
| AUM | $47M | $79.0B | |
| Dividend Yield | 7.50% | 2.86% | |
| Holdings | 10 | 568 | |
| YTD Return | -2.25% | +13.82% | |
| 1Y Return | -0.43% | +24.08% | |
| 3Y Return (annualized) | +3.93% | +17.72% | |
| 5Y Return (annualized) | -1.05% | +12.13% | |
| Volatility (annualized) | 7.4% | 14.6% | |
| Max Drawdown | -21.7% | -58.8% | |
| Fund Family | Overlay Shares | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 30, 2019 | Nov 10, 2006 |
OVB vs VYM Performance
Overlay Shares Core Bond ETF (OVB) is a ETF from Overlay Shares and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year OVB returned -0.43% while VYM returned +24.08%. Year to date, OVB is down 2.25% versus a gain of 13.82% for VYM.
Over three years, OVB compounded at +3.93% per year against +17.72% for VYM; over five years the annualized figures are -1.05% and +12.13% respectively. Across the full 7-year window we track, VYM has the edge at +6.98% annualized vs +0.89%. 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 7.4% for OVB. 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 -21.7% for OVB 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
OVB 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, OVB currently yields 7.50% against 2.86% for VYM.
Holdings Overlap
OVB 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, OVB or VYM?
OVB 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, OVB or VYM?
Over the past year OVB returned -0.43% vs +24.08% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (7 years), OVB annualized +0.89% vs +6.98% for VYM. Past performance does not guarantee future results.
Which is riskier, OVB or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 7.4% for OVB. Worst drawdown: OVB -21.7% vs VYM -58.8%.
Should I hold both OVB and VYM?
OVB and VYM have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between OVB and VYM?
OVB and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 560 unique securities.
Which pays a higher dividend, OVB or VYM?
OVB yields 7.50% while VYM yields 2.86%, so OVB currently pays the higher dividend yield.
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