FDM vs. OVS

Last updated Jun 24, 2026

FDM (First Trust Dow Jones Select MicroCap Index Fund) and OVS (Overlay Shares Small Cap Equity ETF) are both Small Cap Blend Equities funds. FDM is passively managed, while OVS is actively managed. Over the past 5 years, FDM returned 9.37%/yr vs 6.48%/yr for OVS. Their correlation of 0.90 suggests significant overlap in exposure. FDM charges 0.60%/yr vs 0.83%/yr for OVS.

Performance

FDM vs. OVS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Dow Jones Select MicroCap Index Fund (FDM) and Overlay Shares Small Cap Equity ETF (OVS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FDM achieves a 13.86% return, which is significantly lower than OVS's 20.91% return.

FDM

• 1D: 0.76%
• 1M: 4.64%
• YTD: 13.86%
• 6M: 12.43%
• 1Y: 30.56%
• 3Y*: 19.96%
• 5Y*: 9.37%
• 10Y*: 12.29%

OVS

• 1D: -0.41%
• 1M: 3.73%
• YTD: 20.91%
• 6M: 18.05%
• 1Y: 38.42%
• 3Y*: 17.64%
• 5Y*: 6.48%
• 10Y*: —

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

FDM vs. OVS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
FDM First Trust Dow Jones Select MicroCap Index Fund	13.86%	18.64%	13.00%	12.76%	-11.61%	35.08%	-4.04%	11.79%
OVS Overlay Shares Small Cap Equity ETF	20.91%	6.15%	11.07%	17.20%	-19.99%	30.15%	12.16%	9.35%

Correlation

The correlation between FDM and OVS is 0.82, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.82
Correlation (3Y) Calculated over the trailing 3-year period	0.88
Correlation (5Y) Calculated over the trailing 5-year period	0.91
Correlation (All Time) Calculated using the full available price history since Oct 1, 2019	0.90

The correlation between FDM and OVS has been stable across timeframes, ranging from 0.82 to 0.91 - a consistent structural relationship.

FDM vs. OVS - Sectors Allocation Comparison

Sectors	FDM	OVS
Financial Services	42.2%	16.4%
Industrials	14.9%	15.1%
Consumer Cyclical	10.4%	13.1%
Technology	6.8%	17.5%
Healthcare	6.2%	10.9%
Energy	4.6%	5.4%
Basic Materials	4.5%	5.0%
Consumer Defensive	4.5%	3.7%
Communication Services	3.3%	3.7%
Real Estate	1.4%	7.5%
Utilities	1.0%	1.9%

Return for Risk

FDM vs. OVS — Risk / Return Rank

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

FDM

FDM Risk / Return Rank: 55
FDM Sharpe Ratio Rank: 50
FDM Sortino Ratio Rank: 52
FDM Omega Ratio Rank: 47
FDM Calmar Ratio Rank: 70
FDM Martin Ratio Rank: 59

OVS

OVS Risk / Return Rank: 71
OVS Sharpe Ratio Rank: 65
OVS Sortino Ratio Rank: 66
OVS Omega Ratio Rank: 60
OVS Calmar Ratio Rank: 86
OVS Martin Ratio Rank: 80

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.

FDM vs. OVS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Dow Jones Select MicroCap Index Fund (FDM) and Overlay Shares Small Cap Equity ETF (OVS). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	FDM	OVS	Difference
Sharpe ratio: Return per unit of total volatility	1.63	1.99	-0.35
Sortino ratio: Return per unit of downside risk	2.38	2.82	-0.44
Omega ratio: Gain probability vs. loss probability	1.28	1.34	-0.05
Calmar ratio: Return relative to maximum drawdown	3.30	4.54	-1.24
Martin ratio: Return relative to average drawdown	9.96	14.73	-4.77

FDM vs. OVS - Sharpe Ratio Comparison

The current FDM Sharpe Ratio is 1.63, which is comparable to the OVS Sharpe Ratio of 1.99. The chart below compares the historical Sharpe Ratios of FDM and OVS, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

FDM vs. OVS - Drawdown Comparison

The maximum FDM drawdown since its inception was -63.45%, which is greater than OVS's maximum drawdown of -45.09%. Use the drawdown chart below to compare losses from any high point for FDM and OVS.

Drawdown Indicators

	FDM	OVS	Difference
Max Drawdown Largest peak-to-trough decline	-63.45%	-45.09%	-18.36%
Max Drawdown (1Y) Largest decline over 1 year	-9.30%	-8.51%	-0.79%
Max Drawdown (3Y) Largest decline over 3 years	-23.47%	-30.49%	+7.02%
Max Drawdown (5Y) Largest decline over 5 years	-23.74%	-30.49%	+6.75%
Max Drawdown (10Y) Largest decline over 10 years	-47.76%	—	—
Current Drawdown Current decline from peak	0.00%	-0.63%	+0.63%
Average Drawdown Average peak-to-trough decline	-11.32%	-11.27%	-0.05%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.08%	2.61%	+0.47%

Volatility

FDM vs. OVS - Volatility Comparison

The current volatility for First Trust Dow Jones Select MicroCap Index Fund (FDM) is 4.79%, while Overlay Shares Small Cap Equity ETF (OVS) has a volatility of 5.30%. This indicates that FDM experiences smaller price fluctuations and is considered to be less risky than OVS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FDM	OVS	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.79%	5.30%	-0.51%
Volatility (6M) Calculated over the trailing 6-month period	13.23%	13.42%	-0.19%
Volatility (1Y) Calculated over the trailing 1-year period	18.84%	19.47%	-0.63%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.40%	23.24%	-1.84%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.36%	27.42%	-4.06%

FDM vs. OVS - Expense Ratio Comparison

FDM has a 0.60% expense ratio, which is lower than OVS's 0.83% expense ratio.

Dividends

FDM vs. OVS - Dividend Comparison

FDM's dividend yield for the trailing twelve months is around 1.21%, less than OVS's 6.64% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FDM First Trust Dow Jones Select MicroCap Index Fund	1.21%	1.43%	1.56%	1.81%	1.80%	1.08%	1.68%	1.37%	1.26%	0.97%	1.13%	1.45%
OVS Overlay Shares Small Cap Equity ETF	6.64%	3.69%	4.08%	3.19%	3.43%	4.05%	1.74%	0.54%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FDM and OVS in my portfolio?

FDM and OVS have a correlation of 0.82, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FDM or OVS?

OVS has higher volatility (5.30%) compared to FDM (4.79%). In terms of maximum drawdown, FDM dropped -63.45% vs OVS's -45.09%.

Which ETF is better, FDM or OVS?

On 5-year performance, FDM leads with 9.37% vs 6.48% for OVS. On fees, FDM is cheaper at 0.60% per year. On volatility, FDM has been the lower-risk option at 4.79%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FDM or OVS?

Over the 5-year period, FDM has performed better with a 9.37% return vs 6.48%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FDM or OVS?

FDM is cheaper with a 0.60% expense ratio, compared with 0.83% for OVS.

Which ETF pays a higher dividend yield, FDM or OVS?

OVS has the higher dividend yield at 6.64%, compared with 1.21% for FDM.

What is the main difference between FDM and OVS?

They also come from different issuers: First Trust and Liquid Strategies. Their fees differ too: 0.60% for FDM and 0.83% for OVS.

Which has better risk-adjusted returns?

OVS currently has the higher Sharpe Ratio (1.99 vs 1.63), 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.