LQDW vs. OVT
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 3.11%/yr vs 7.11%/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
Loading charts...
Returns By Period
In the year-to-date period, LQDW achieves a 0.79% return, which is significantly lower than OVT's 2.30% return.
LQDW
- 1D
- -0.41%
- 1M
- -0.80%
- 6M
- 0.40%
- YTD
- 0.79%
- 1Y
- 4.76%
- 3Y*
- 3.11%
- 5Y*
- —
- 10Y*
- —
OVT
- 1D
- -0.25%
- 1M
- 0.13%
- 6M
- 2.01%
- YTD
- 2.30%
- 1Y
- 7.09%
- 3Y*
- 7.11%
- 5Y*
- 2.84%
- 10Y*
- —
LQDW vs. OVT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
LQDW iShares Investment Grade Corporate Bond Buywrite Strategy ETF | 0.79% | 9.05% | 2.60% | 3.99% | -6.78% |
OVT Overlay Shares Short Term Bond ETF | 2.30% | 7.61% | 7.44% | 7.73% | -2.79% |
Correlation
The correlation between LQDW and OVT is 0.56, 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 | 0.56 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.49 |
Correlation (All Time) Calculated using the full available price history since Aug 22, 2022 | 0.56 |
The correlation between LQDW and OVT has been stable across timeframes, ranging from 0.49 to 0.56 - a consistent structural relationship.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
LQDW vs. OVT — Risk / Return Rank
LQDW
OVT
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.
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.
| LQDW | OVT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.65 | ||
| Sortino ratioReturn per unit of downside risk | -0.93 | ||
| Omega ratioGain probability vs. loss probability | 1.25 | 1.38 | -0.13 |
| Calmar ratioReturn relative to maximum drawdown | 1.84 | 4.59 | -2.75 |
| Martin ratioReturn relative to average drawdown | 6.71 | 13.88 | -7.17 |
Loading charts...
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.
Loading charts...
Drawdown Indicators
| LQDW | OVT | Difference | |
|---|---|---|---|
Max DrawdownLargest 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 DrawdownCurrent decline from peak | -1.52% | -0.71% | -0.81% |
Average DrawdownAverage peak-to-trough decline | -2.29% | -3.34% | +1.05% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.71% | 0.51% | +0.20% |
Volatility
LQDW vs. OVT - Volatility Comparison
The current volatility for iShares Investment Grade Corporate Bond Buywrite Strategy ETF (LQDW) is 1.06%, while Overlay Shares Short Term Bond ETF (OVT) has a volatility of 1.32%. This indicates that LQDW 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.
Loading charts...
Volatility by Period
| LQDW | OVT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.06% | 1.32% | -0.26% |
Volatility (6M)Calculated over the trailing 6-month period | 3.22% | 2.84% | +0.38% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.70% | 3.66% | +0.04% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.45% | 4.68% | +0.77% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.45% | 4.55% | +0.90% |
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 12.29%, more than OVT's 7.09% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|---|
LQDW iShares Investment Grade Corporate Bond Buywrite Strategy ETF | 12.29% | 16.02% | 15.74% | 19.28% | 8.85% | 0.00% |
OVT Overlay Shares Short Term Bond ETF | 7.09% | 7.21% | 6.15% | 5.11% | 4.12% | 4.41% |
Frequently Asked Questions
LQDW and OVT have a correlation of 0.56, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
OVT has higher volatility (1.32%) compared to LQDW (1.06%). In terms of maximum drawdown, LQDW dropped -9.20% vs OVT's -13.59%.
On 3-year performance, OVT leads with 7.11% vs 3.11% for LQDW. On fees, LQDW is cheaper at 0.34% per year. On volatility, LQDW has been the lower-risk option at 1.06%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, OVT has performed better with a 7.11% return vs 3.11%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
LQDW is cheaper with a 0.34% expense ratio, compared with 0.80% for OVT.
LQDW has the higher dividend yield at 12.29%, compared with 7.09% for OVT.
They also come from different issuers: iShares and Liquid Strategies. Their fees differ too: 0.34% for LQDW and 0.80% for OVT.
OVT currently has the higher Sharpe Ratio (1.95 vs 1.30), 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.
Find the right allocation for LQDW and OVT
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer