OVT vs SCHD
OVT vs SCHD
Overlay Shares Short Term Bond 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 100 holdings.
Side-by-Side Comparison
| Metric | OVT | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.79% | 0.06% | |
| AUM | $61M | $103.7B | |
| Dividend Yield | 8.18% | 3.31% | |
| Holdings | 9 | 104 | |
| YTD Return | -0.98% | +23.53% | |
| 1Y Return | -0.15% | +30.95% | |
| 3Y Return (annualized) | +5.00% | +14.72% | |
| 5Y Return (annualized) | +1.60% | +9.56% | |
| Volatility (annualized) | 5.1% | 13.6% | |
| Max Drawdown | -13.6% | -33.4% | |
| Fund Family | Overlay Shares | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Jan 14, 2021 | Oct 20, 2011 |
OVT vs SCHD Performance
Overlay Shares Short Term Bond ETF (OVT) 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 OVT returned -0.15% while SCHD returned +30.95%. Year to date, OVT is down 0.98% versus a gain of 23.53% for SCHD.
Over three years, OVT compounded at +5.00% per year against +14.72% for SCHD; over five years the annualized figures are +1.60% and +9.56% respectively. Across the full 6-year window we track, SCHD has the edge at +11.35% annualized vs +1.90%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% 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 -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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
OVT charges 0.79% per year while SCHD charges 0.06%. On a $10,000 position that is $79 vs $6 annually, a gap of $73 per year that compounds over a long holding period. On income, OVT currently yields 8.18% against 3.31% for SCHD.
Holdings Overlap
OVT 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, OVT or SCHD?
OVT has an expense ratio of 0.79% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $73 per year of difference.
Which performed better, OVT or SCHD?
Over the past year OVT returned -0.15% vs +30.95% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (6 years), OVT annualized +1.90% vs +11.35% for SCHD. Past performance does not guarantee future results.
Which is riskier, OVT or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 5.1% for OVT. Worst drawdown: OVT -13.6% vs SCHD -33.4%.
Should I hold both OVT and SCHD?
OVT and SCHD have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between OVT and SCHD?
OVT and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 102 unique securities.
Which pays a higher dividend, OVT or SCHD?
OVT yields 8.18% while SCHD yields 3.31%, so OVT currently pays the higher dividend yield.
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