BAB vs. OVM
BAB (Invesco Taxable Municipal Bond ETF) and OVM (Overlay Shares Municipal Bond ETF) are both Municipal Bonds funds. BAB is passively managed, while OVM is actively managed. Over the past 5 years, BAB returned -0.38%/yr vs 1.59%/yr for OVM. A 0.51 correlation means they provide meaningful diversification when combined. BAB charges 0.28%/yr vs 0.82%/yr for OVM.
Performance
BAB vs. OVM - Performance Comparison
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Returns By Period
In the year-to-date period, BAB achieves a 0.12% return, which is significantly lower than OVM's 3.96% return.
BAB
- 1D
- 0.00%
- 1M
- 0.33%
- YTD
- 0.12%
- 6M
- -0.01%
- 1Y
- 7.16%
- 3Y*
- 4.42%
- 5Y*
- -0.38%
- 10Y*
- 2.24%
OVM
- 1D
- -0.17%
- 1M
- 1.10%
- YTD
- 3.96%
- 6M
- 4.16%
- 1Y
- 11.81%
- 3Y*
- 5.37%
- 5Y*
- 1.59%
- 10Y*
- —
BAB vs. OVM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |
|---|---|---|---|---|---|---|---|---|
BAB Invesco Taxable Municipal Bond ETF | 0.12% | 8.30% | 1.03% | 8.67% | -19.50% | 1.00% | 9.11% | -1.49% |
OVM Overlay Shares Municipal Bond ETF | 3.96% | 4.14% | 3.42% | 7.35% | -11.26% | 4.22% | 6.17% | 1.72% |
Correlation
The correlation between BAB and OVM is 0.49, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.49 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.55 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.56 |
Correlation (All Time) Calculated using the full available price history since Oct 2, 2019 | 0.51 |
The correlation between BAB and OVM has been stable across timeframes, ranging from 0.49 to 0.56 - a consistent structural relationship.
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Return for Risk
BAB vs. OVM — Risk / Return Rank
BAB
OVM
BAB vs. OVM - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco Taxable Municipal Bond ETF (BAB) and Overlay Shares Municipal Bond ETF (OVM). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| BAB | OVM | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.61 | ||
| Sortino ratioReturn per unit of downside risk | -2.32 | ||
| Omega ratioGain probability vs. loss probability | 1.22 | 1.58 | -0.36 |
| Calmar ratioReturn relative to maximum drawdown | 1.73 | 4.86 | -3.13 |
| Martin ratioReturn relative to average drawdown | 4.93 | 18.92 | -13.98 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| BAB | OVM | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.24 | 2.85 | -1.61 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.05 | 0.30 | -0.34 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.23 | — | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.52 | 0.43 | +0.09 |
Drawdowns
BAB vs. OVM - Drawdown Comparison
The maximum BAB drawdown since its inception was -27.80%, which is greater than OVM's maximum drawdown of -15.58%. Use the drawdown chart below to compare losses from any high point for BAB and OVM.
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Drawdown Indicators
| BAB | OVM | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -27.80% | -15.58% | -12.22% |
Max Drawdown (1Y)Largest decline over 1 year | -4.15% | -2.44% | -1.71% |
Max Drawdown (3Y)Largest decline over 3 years | -7.57% | -8.20% | +0.63% |
Max Drawdown (5Y)Largest decline over 5 years | -24.95% | -15.58% | -9.37% |
Max Drawdown (10Y)Largest decline over 10 years | -27.80% | — | — |
Current DrawdownCurrent decline from peak | -5.64% | -0.17% | -5.47% |
Average DrawdownAverage peak-to-trough decline | -5.31% | -4.01% | -1.30% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.46% | 0.63% | +0.83% |
Volatility
BAB vs. OVM - Volatility Comparison
Invesco Taxable Municipal Bond ETF (BAB) has a higher volatility of 1.72% compared to Overlay Shares Municipal Bond ETF (OVM) at 1.26%. This indicates that BAB's price experiences larger fluctuations and is considered to be riskier than OVM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| BAB | OVM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.72% | 1.26% | +0.46% |
Volatility (6M)Calculated over the trailing 6-month period | 3.78% | 3.36% | +0.42% |
Volatility (1Y)Calculated over the trailing 1-year period | 5.80% | 4.16% | +1.64% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 8.33% | 5.39% | +2.94% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 9.69% | 6.55% | +3.14% |
BAB vs. OVM - Expense Ratio Comparison
BAB has a 0.28% expense ratio, which is lower than OVM's 0.82% expense ratio.
Dividends
BAB vs. OVM - Dividend Comparison
BAB's dividend yield for the trailing twelve months is around 4.10%, less than OVM's 6.11% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BAB Invesco Taxable Municipal Bond ETF | 4.10% | 3.96% | 3.97% | 3.65% | 3.40% | 2.63% | 2.96% | 3.77% | 4.20% | 3.96% | 4.26% | 4.71% |
OVM Overlay Shares Municipal Bond ETF | 6.11% | 5.45% | 4.91% | 4.66% | 4.21% | 6.10% | 3.97% | 0.58% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
BAB and OVM have a correlation of 0.49, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
BAB has higher volatility (1.72%) compared to OVM (1.26%). In terms of maximum drawdown, BAB dropped -27.80% vs OVM's -15.58%.
On 5-year performance, OVM leads with 1.59% vs -0.38% for BAB. On fees, BAB is cheaper at 0.28% per year. On volatility, OVM has been the lower-risk option at 1.26%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, OVM has performed better with a 1.59% return vs -0.38%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
BAB is cheaper with a 0.28% expense ratio, compared with 0.82% for OVM.
OVM has the higher dividend yield at 6.11%, compared with 4.10% for BAB.
They also come from different issuers: Invesco and Liquid Strategies. Their fees differ too: 0.28% for BAB and 0.82% for OVM.
OVM currently has the higher Sharpe Ratio (2.85 vs 1.24), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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