IBDU vs. OVT

Last updated Jun 4, 2026

IBDU (iShares iBonds Dec 2029 Term Corporate ETF) and OVT (Overlay Shares Short Term Bond ETF) are both Corporate Bonds funds. IBDU is passively managed, while OVT is actively managed. Over the past 5 years, IBDU returned 1.29%/yr vs 3.01%/yr for OVT. A 0.61 correlation means they provide meaningful diversification when combined. IBDU charges 0.10%/yr vs 0.80%/yr for OVT.

Performance

IBDU vs. OVT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares iBonds Dec 2029 Term Corporate ETF (IBDU) and Overlay Shares Short Term Bond ETF (OVT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IBDU achieves a 0.54% return, which is significantly lower than OVT's 2.61% return.

IBDU

• 1D: -0.13%
• 1M: 0.12%
• YTD: 0.54%
• 6M: 0.88%
• 1Y: 4.76%
• 3Y*: 5.73%
• 5Y*: 1.29%
• 10Y*: —

OVT

• 1D: -0.16%
• 1M: 0.55%
• YTD: 2.61%
• 6M: 3.07%
• 1Y: 8.92%
• 3Y*: 7.44%
• 5Y*: 3.01%
• 10Y*: —

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

IBDU vs. OVT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
IBDU iShares iBonds Dec 2029 Term Corporate ETF	0.54%	7.59%	3.62%	8.67%	-13.04%	-1.06%
OVT Overlay Shares Short Term Bond ETF	2.61%	7.61%	7.44%	7.73%	-9.68%	2.07%

Correlation

The correlation between IBDU and OVT is 0.65, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.65
Correlation (3Y) Calculated over the trailing 3-year period	0.59
Correlation (5Y) Calculated over the trailing 5-year period	0.62
Correlation (All Time) Calculated using the full available price history since Jan 19, 2021	0.61

The correlation between IBDU and OVT has been stable across timeframes, ranging from 0.59 to 0.65 - a consistent structural relationship.

Return for Risk

IBDU vs. OVT — Risk / Return Rank

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

IBDU

IBDU Risk / Return Rank: 65
IBDU Sharpe Ratio Rank: 63
IBDU Sortino Ratio Rank: 72
IBDU Omega Ratio Rank: 67
IBDU Calmar Ratio Rank: 61
IBDU Martin Ratio Rank: 63

OVT

OVT Risk / Return Rank: 85
OVT Sharpe Ratio Rank: 80
OVT Sortino Ratio Rank: 84
OVT Omega Ratio Rank: 84
OVT Calmar Ratio Rank: 91
OVT Martin Ratio Rank: 89

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.

IBDU vs. OVT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares iBonds Dec 2029 Term Corporate ETF (IBDU) and Overlay Shares Short Term Bond ETF (OVT). 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.

	IBDU	OVT	Difference
Sharpe ratio Return per unit of total volatility	2.12	2.60	-0.48
Sortino ratio Return per unit of downside risk	3.29	3.83	-0.54
Omega ratio Gain probability vs. loss probability	1.41	1.51	-0.11
Calmar ratio Return relative to maximum drawdown	3.02	5.78	-2.76
Martin ratio Return relative to average drawdown	11.33	20.00	-8.67
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IBDU vs. OVT - Sharpe Ratio Comparison

The current IBDU Sharpe Ratio is 2.12, which is comparable to the OVT Sharpe Ratio of 2.60. The chart below compares the historical Sharpe Ratios of IBDU and OVT, 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

	IBDU	OVT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.12	2.60	-0.48
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.23	0.65	-0.43
Sharpe Ratio (All Time) Calculated using the full available price history	0.33	0.69	-0.36

Drawdowns

IBDU vs. OVT - Drawdown Comparison

The maximum IBDU drawdown since its inception was -19.44%, which is greater than OVT's maximum drawdown of -13.59%. Use the drawdown chart below to compare losses from any high point for IBDU and OVT.

Drawdown Indicators

	IBDU	OVT	Difference
Max Drawdown Largest peak-to-trough decline	-19.44%	-13.59%	-5.85%
Max Drawdown (1Y) Largest decline over 1 year	-1.59%	-1.55%	-0.04%
Max Drawdown (3Y) Largest decline over 3 years	-4.14%	-3.55%	-0.59%
Max Drawdown (5Y) Largest decline over 5 years	-19.44%	-13.59%	-5.85%
Current Drawdown Current decline from peak	-0.54%	-0.41%	-0.13%
Average Drawdown Average peak-to-trough decline	-5.41%	-3.39%	-2.02%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.42%	0.45%	-0.03%

Volatility

IBDU vs. OVT - Volatility Comparison

The current volatility for iShares iBonds Dec 2029 Term Corporate ETF (IBDU) is 0.58%, while Overlay Shares Short Term Bond ETF (OVT) has a volatility of 0.83%. This indicates that IBDU experiences smaller price fluctuations and is considered to be less risky than OVT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IBDU	OVT	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.58%	0.83%	-0.25%
Volatility (6M) Calculated over the trailing 6-month period	1.49%	2.52%	-1.03%
Volatility (1Y) Calculated over the trailing 1-year period	2.26%	3.44%	-1.18%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.72%	4.63%	+1.09%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	7.32%	4.54%	+2.78%

IBDU vs. OVT - Expense Ratio Comparison

IBDU has a 0.10% expense ratio, which is lower than OVT's 0.80% expense ratio.

Dividends

IBDU vs. OVT - Dividend Comparison

IBDU's dividend yield for the trailing twelve months is around 4.66%, less than OVT's 8.17% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
IBDU iShares iBonds Dec 2029 Term Corporate ETF	4.66%	4.67%	4.75%	4.21%	3.34%	2.29%	2.42%	0.74%
OVT Overlay Shares Short Term Bond ETF	8.17%	7.21%	6.15%	5.11%	4.12%	4.41%	0.00%	0.00%

Frequently Asked Questions

Can I hold both IBDU and OVT in my portfolio?

IBDU and OVT have a correlation of 0.65, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IBDU or OVT?

OVT has higher volatility (0.83%) compared to IBDU (0.58%). In terms of maximum drawdown, IBDU dropped -19.44% vs OVT's -13.59%.

Which ETF is better, IBDU or OVT?

On 5-year performance, OVT leads with 3.01% vs 1.29% for IBDU. On fees, IBDU is cheaper at 0.10% per year. On volatility, IBDU has been the lower-risk option at 0.58%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IBDU or OVT?

Over the 5-year period, OVT has performed better with a 3.01% return vs 1.29%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IBDU or OVT?

IBDU is cheaper with a 0.10% expense ratio, compared with 0.80% for OVT.

Which ETF pays a higher dividend yield, IBDU or OVT?

OVT has the higher dividend yield at 8.17%, compared with 4.66% for IBDU.

What is the main difference between IBDU and OVT?

They also come from different issuers: iShares and Liquid Strategies. Their fees differ too: 0.10% for IBDU and 0.80% for OVT.

Which has better risk-adjusted returns?

OVT currently has the higher Sharpe Ratio (2.60 vs 2.12), 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.