LQDW vs. OVT

Last updated Jun 4, 2026

LQDW (iShares Investment Grade Corporate Bond Buywrite Strategy ETF) and OVT (Overlay Shares Short Term Bond ETF) are both Corporate Bonds funds. LQDW is passively managed, while OVT is actively managed. Over the past 3 years, LQDW returned 3.79%/yr vs 7.44%/yr for OVT. A 0.56 correlation means they provide meaningful diversification when combined. LQDW charges 0.34%/yr vs 0.80%/yr for OVT.

Performance

LQDW vs. OVT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Investment Grade Corporate Bond Buywrite Strategy ETF (LQDW) 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, LQDW achieves a 1.25% return, which is significantly lower than OVT's 2.61% return.

LQDW

• 1D: -0.20%
• 1M: 0.83%
• YTD: 1.25%
• 6M: 1.65%
• 1Y: 6.49%
• 3Y*: 3.79%
• 5Y*: —
• 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)

LQDW vs. OVT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
LQDW iShares Investment Grade Corporate Bond Buywrite Strategy ETF	1.25%	9.05%	2.60%	3.99%	-6.78%
OVT Overlay Shares Short Term Bond ETF	2.61%	7.61%	7.44%	7.73%	-2.21%

Correlation

The correlation between LQDW and OVT is 0.52, 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	0.52
Correlation (3Y) Calculated over the trailing 3-year period	0.50
Correlation (All Time) Calculated using the full available price history since Aug 23, 2022	0.56

The correlation between LQDW and OVT has been stable across timeframes, ranging from 0.50 to 0.56 - a consistent structural relationship.

Return for Risk

LQDW vs. OVT — Risk / Return Rank

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

LQDW

LQDW Risk / Return Rank: 54
LQDW Sharpe Ratio Rank: 53
LQDW Sortino Ratio Rank: 53
LQDW Omega Ratio Rank: 61
LQDW Calmar Ratio Rank: 50
LQDW Martin Ratio Rank: 54

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.

LQDW vs. OVT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Investment Grade Corporate Bond Buywrite Strategy ETF (LQDW) 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.

	LQDW	OVT	Difference
Sharpe ratio Return per unit of total volatility	1.85	2.60	-0.75
Sortino ratio Return per unit of downside risk	2.62	3.83	-1.21
Omega ratio Gain probability vs. loss probability	1.38	1.51	-0.13
Calmar ratio Return relative to maximum drawdown	2.51	5.78	-3.26
Martin ratio Return relative to average drawdown	9.39	20.00	-10.61
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

LQDW vs. OVT - Sharpe Ratio Comparison

The current LQDW Sharpe Ratio is 1.85, which is comparable to the OVT Sharpe Ratio of 2.60. The chart below compares the historical Sharpe Ratios of LQDW 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

	LQDW	OVT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.85	2.60	-0.75
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.65	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.46	0.69	-0.23

Drawdowns

LQDW vs. OVT - Drawdown Comparison

The maximum LQDW drawdown since its inception was -9.20%, smaller than the maximum OVT drawdown of -13.59%. Use the drawdown chart below to compare losses from any high point for LQDW and OVT.

Drawdown Indicators

	LQDW	OVT	Difference
Max Drawdown Largest peak-to-trough decline	-9.20%	-13.59%	+4.39%
Max Drawdown (1Y) Largest decline over 1 year	-2.59%	-1.55%	-1.04%
Max Drawdown (3Y) Largest decline over 3 years	-6.74%	-3.55%	-3.19%
Max Drawdown (5Y) Largest decline over 5 years	—	-13.59%	—
Current Drawdown Current decline from peak	-0.35%	-0.41%	+0.06%
Average Drawdown Average peak-to-trough decline	-2.35%	-3.39%	+1.04%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.69%	0.45%	+0.24%

Volatility

LQDW vs. OVT - Volatility Comparison

iShares Investment Grade Corporate Bond Buywrite Strategy ETF (LQDW) has a higher volatility of 1.46% compared to Overlay Shares Short Term Bond ETF (OVT) at 0.83%. This indicates that LQDW's price experiences larger fluctuations and is considered to be riskier than OVT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LQDW	OVT	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.46%	0.83%	+0.63%
Volatility (6M) Calculated over the trailing 6-month period	3.02%	2.52%	+0.50%
Volatility (1Y) Calculated over the trailing 1-year period	3.53%	3.44%	+0.09%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.49%	4.63%	+0.86%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.49%	4.54%	+0.95%

LQDW vs. OVT - Expense Ratio Comparison

LQDW has a 0.34% expense ratio, which is lower than OVT's 0.80% expense ratio.

Dividends

LQDW vs. OVT - Dividend Comparison

LQDW's dividend yield for the trailing twelve months is around 12.57%, more than OVT's 8.17% yield.

Position	TTM	2025	2024	2023	2022	2021
LQDW iShares Investment Grade Corporate Bond Buywrite Strategy ETF	12.57%	16.02%	15.74%	19.28%	8.85%	0.00%
OVT Overlay Shares Short Term Bond ETF	8.17%	7.21%	6.15%	5.11%	4.12%	4.41%

Frequently Asked Questions

Can I hold both LQDW and OVT in my portfolio?

LQDW and OVT have a correlation of 0.52, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, LQDW or OVT?

LQDW has higher volatility (1.46%) compared to OVT (0.83%). In terms of maximum drawdown, LQDW dropped -9.20% vs OVT's -13.59%.

Which ETF is better, LQDW or OVT?

On 3-year performance, OVT leads with 7.44% vs 3.79% for LQDW. On fees, LQDW is cheaper at 0.34% per year. On volatility, OVT has been the lower-risk option at 0.83%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, LQDW or OVT?

Over the 3-year period, OVT has performed better with a 7.44% return vs 3.79%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LQDW or OVT?

LQDW is cheaper with a 0.34% expense ratio, compared with 0.80% for OVT.

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

LQDW has the higher dividend yield at 12.57%, compared with 8.17% for OVT.

What is the main difference between LQDW and OVT?

They also come from different issuers: iShares and Liquid Strategies. Their fees differ too: 0.34% for LQDW and 0.80% for OVT.

Which has better risk-adjusted returns?

OVT currently has the higher Sharpe Ratio (2.60 vs 1.85), 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.