EVSM vs. OVM

Last updated Jun 4, 2026

EVSM (Eaton Vance Short Duration Municipal Income ETF) and OVM (Overlay Shares Municipal Bond ETF) are both Municipal Bonds funds. EVSM is passively managed, while OVM is actively managed. Over the past year, EVSM returned 4.06% vs 11.81% for OVM. At a 0.41 correlation, their price movements are largely independent. EVSM charges 0.19%/yr vs 0.82%/yr for OVM.

Performance

EVSM vs. OVM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Eaton Vance Short Duration Municipal Income ETF (EVSM) and Overlay Shares Municipal Bond ETF (OVM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, EVSM achieves a 1.15% return, which is significantly lower than OVM's 3.96% return.

EVSM

• 1D: 0.06%
• 1M: 0.42%
• YTD: 1.15%
• 6M: 1.48%
• 1Y: 4.06%
• 3Y*: —
• 5Y*: —
• 10Y*: —

OVM

• 1D: -0.17%
• 1M: 1.10%
• YTD: 3.96%
• 6M: 4.16%
• 1Y: 11.81%
• 3Y*: 5.37%
• 5Y*: 1.59%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

EVSM vs. OVM - Yearly Performance Comparison

	2026 (YTD)	2025	2024
EVSM Eaton Vance Short Duration Municipal Income ETF	1.15%	4.24%	2.52%
OVM Overlay Shares Municipal Bond ETF	3.96%	4.14%	1.80%

Correlation

The correlation between EVSM and OVM is 0.35, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.35
Correlation (All Time) Calculated using the full available price history since Mar 26, 2024	0.41

Return for Risk

EVSM vs. OVM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

EVSM

EVSM Risk / Return Rank: 86
EVSM Sharpe Ratio Rank: 91
EVSM Sortino Ratio Rank: 95
EVSM Omega Ratio Rank: 94
EVSM Calmar Ratio Rank: 76
EVSM Martin Ratio Rank: 73

OVM

OVM Risk / Return Rank: 88
OVM Sharpe Ratio Rank: 86
OVM Sortino Ratio Rank: 90
OVM Omega Ratio Rank: 90
OVM Calmar Ratio Rank: 86
OVM Martin Ratio Rank: 87

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

EVSM vs. OVM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Eaton Vance Short Duration Municipal Income ETF (EVSM) 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.

	EVSM	OVM	Difference
Sharpe ratio: Return per unit of total volatility	3.23	2.85	+0.38
Sortino ratio: Return per unit of downside risk	5.13	4.24	+0.90
Omega ratio: Gain probability vs. loss probability	1.70	1.58	+0.12
Calmar ratio: Return relative to maximum drawdown	3.79	4.86	-1.07
Martin ratio: Return relative to average drawdown	13.52	18.92	-5.40
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

EVSM vs. OVM - Sharpe Ratio Comparison

The current EVSM Sharpe Ratio is 3.23, which is comparable to the OVM Sharpe Ratio of 2.85. The chart below compares the historical Sharpe Ratios of EVSM and OVM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	EVSM	OVM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.23	2.85	+0.38
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.30	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.89	0.43	+1.47

Drawdowns

EVSM vs. OVM - Drawdown Comparison

The maximum EVSM drawdown since its inception was -1.50%, smaller than the maximum OVM drawdown of -15.58%. Use the drawdown chart below to compare losses from any high point for EVSM and OVM.

Drawdown Indicators

	EVSM	OVM	Difference
Max Drawdown Largest peak-to-trough decline	-1.50%	-15.58%	+14.08%
Max Drawdown (1Y) Largest decline over 1 year	-1.07%	-2.44%	+1.37%
Max Drawdown (3Y) Largest decline over 3 years	—	-8.20%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-15.58%	—
Current Drawdown Current decline from peak	-0.06%	-0.17%	+0.11%
Average Drawdown Average peak-to-trough decline	-0.24%	-4.01%	+3.77%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.30%	0.63%	-0.33%

Volatility

EVSM vs. OVM - Volatility Comparison

The current volatility for Eaton Vance Short Duration Municipal Income ETF (EVSM) is 0.33%, while Overlay Shares Municipal Bond ETF (OVM) has a volatility of 1.26%. This indicates that EVSM experiences smaller price fluctuations and is considered to be less risky than OVM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EVSM	OVM	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.33%	1.26%	-0.93%
Volatility (6M) Calculated over the trailing 6-month period	0.83%	3.36%	-2.53%
Volatility (1Y) Calculated over the trailing 1-year period	1.27%	4.16%	-2.89%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.92%	5.39%	-3.47%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.92%	6.55%	-4.63%

EVSM vs. OVM - Expense Ratio Comparison

EVSM has a 0.19% expense ratio, which is lower than OVM's 0.82% expense ratio.

Dividends

EVSM vs. OVM - Dividend Comparison

EVSM's dividend yield for the trailing twelve months is around 3.00%, less than OVM's 6.11% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
EVSM Eaton Vance Short Duration Municipal Income ETF	3.00%	3.12%	2.99%	0.00%	0.00%	0.00%	0.00%	0.00%
OVM Overlay Shares Municipal Bond ETF	6.11%	5.45%	4.91%	4.66%	4.21%	6.10%	3.97%	0.58%

Frequently Asked Questions

Can I hold both EVSM and OVM in my portfolio?

EVSM and OVM have a correlation of 0.35, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, EVSM or OVM?

OVM has higher volatility (1.26%) compared to EVSM (0.33%). In terms of maximum drawdown, EVSM dropped -1.50% vs OVM's -15.58%.

Which ETF is better, EVSM or OVM?

On 1-year performance, OVM leads with 11.81% vs 4.06% for EVSM. On fees, EVSM is cheaper at 0.19% per year. On volatility, EVSM has been the lower-risk option at 0.33%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EVSM or OVM?

Over the 1-year period, OVM has performed better with a 11.81% return vs 4.06%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EVSM or OVM?

EVSM is cheaper with a 0.19% expense ratio, compared with 0.82% for OVM.

Which ETF pays a higher dividend yield, EVSM or OVM?

OVM has the higher dividend yield at 6.11%, compared with 3.00% for EVSM.

What is the main difference between EVSM and OVM?

They also come from different issuers: Eaton Vance and Liquid Strategies. Their fees differ too: 0.19% for EVSM and 0.82% for OVM.

Which has better risk-adjusted returns?

EVSM currently has the higher Sharpe Ratio (3.23 vs 2.85), 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.