MFLX vs. OVM

Last updated Jun 24, 2026

MFLX (First Trust Flexible Municipal High Income ETF) and OVM (Overlay Shares Municipal Bond ETF) are both Municipal Bonds funds. Both are actively managed. Over the past 5 years, MFLX returned -0.12%/yr vs 1.46%/yr for OVM. At a 0.33 correlation, their price movements are largely independent. MFLX charges 0.88%/yr vs 0.82%/yr for OVM.

Performance

MFLX vs. OVM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Flexible Municipal High Income ETF (MFLX) 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, MFLX achieves a 3.93% return, which is significantly higher than OVM's 3.51% return.

MFLX

• 1D: -0.03%
• 1M: 1.97%
• YTD: 3.93%
• 6M: 4.06%
• 1Y: 9.22%
• 3Y*: 5.58%
• 5Y*: -0.12%
• 10Y*: —

OVM

• 1D: -0.23%
• 1M: 0.91%
• YTD: 3.51%
• 6M: 3.37%
• 1Y: 10.31%
• 3Y*: 4.89%
• 5Y*: 1.46%
• 10Y*: —

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

MFLX vs. OVM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
MFLX First Trust Flexible Municipal High Income ETF	3.93%	3.94%	3.74%	8.98%	-19.94%	8.43%	7.19%	1.18%
OVM Overlay Shares Municipal Bond ETF	3.51%	4.14%	3.42%	7.35%	-11.26%	4.22%	6.17%	1.61%

Correlation

The correlation between MFLX and OVM is 0.47, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.47
Correlation (3Y) Calculated over the trailing 3-year period	0.31
Correlation (5Y) Calculated over the trailing 5-year period	0.31
Correlation (All Time) Calculated using the full available price history since Oct 1, 2019	0.33

The correlation between MFLX and OVM shifts across timeframes, from 0.31 (5 years) to 0.47 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

MFLX vs. OVM — Risk / Return Rank

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

MFLX

MFLX Risk / Return Rank: 77
MFLX Sharpe Ratio Rank: 78
MFLX Sortino Ratio Rank: 85
MFLX Omega Ratio Rank: 88
MFLX Calmar Ratio Rank: 65
MFLX Martin Ratio Rank: 70

OVM

OVM Risk / Return Rank: 84
OVM Sharpe Ratio Rank: 81
OVM Sortino Ratio Rank: 85
OVM Omega Ratio Rank: 85
OVM Calmar Ratio Rank: 83
OVM Martin Ratio Rank: 83

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.

MFLX vs. OVM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Flexible Municipal High Income ETF (MFLX) 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.

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.

	MFLX	OVM	Difference
Sharpe ratio: Return per unit of total volatility	2.28	2.43	-0.14
Sortino ratio: Return per unit of downside risk	3.49	3.52	-0.03
Omega ratio: Gain probability vs. loss probability	1.50	1.48	+0.01
Calmar ratio: Return relative to maximum drawdown	2.97	4.25	-1.27
Martin ratio: Return relative to average drawdown	11.98	16.03	-4.05

MFLX vs. OVM - Sharpe Ratio Comparison

The current MFLX Sharpe Ratio is 2.28, which is comparable to the OVM Sharpe Ratio of 2.43. The chart below compares the historical Sharpe Ratios of MFLX 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.

Drawdowns

MFLX vs. OVM - Drawdown Comparison

The maximum MFLX drawdown since its inception was -26.76%, which is greater than OVM's maximum drawdown of -15.58%. Use the drawdown chart below to compare losses from any high point for MFLX and OVM.

Drawdown Indicators

	MFLX	OVM	Difference
Max Drawdown Largest peak-to-trough decline	-26.76%	-15.58%	-11.18%
Max Drawdown (1Y) Largest decline over 1 year	-3.11%	-2.44%	-0.67%
Max Drawdown (3Y) Largest decline over 3 years	-8.18%	-8.20%	+0.02%
Max Drawdown (5Y) Largest decline over 5 years	-25.88%	-15.58%	-10.30%
Current Drawdown Current decline from peak	-3.22%	-0.66%	-2.56%
Average Drawdown Average peak-to-trough decline	-8.14%	-3.98%	-4.16%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.77%	0.64%	+0.13%

Volatility

MFLX vs. OVM - Volatility Comparison

The current volatility for First Trust Flexible Municipal High Income ETF (MFLX) is 0.99%, while Overlay Shares Municipal Bond ETF (OVM) has a volatility of 1.47%. This indicates that MFLX 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

	MFLX	OVM	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.99%	1.47%	-0.48%
Volatility (6M) Calculated over the trailing 6-month period	3.02%	3.48%	-0.46%
Volatility (1Y) Calculated over the trailing 1-year period	4.07%	4.27%	-0.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	10.35%	5.42%	+4.93%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.26%	6.54%	+4.72%

MFLX vs. OVM - Expense Ratio Comparison

MFLX has a 0.88% expense ratio, which is higher than OVM's 0.82% expense ratio.

Dividends

MFLX vs. OVM - Dividend Comparison

MFLX's dividend yield for the trailing twelve months is around 4.05%, less than OVM's 6.14% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
MFLX First Trust Flexible Municipal High Income ETF	4.05%	4.06%	3.81%	3.65%	4.27%	3.69%	3.21%	2.94%	3.74%	3.80%	0.98%
OVM Overlay Shares Municipal Bond ETF	6.14%	5.45%	4.91%	4.66%	4.21%	6.10%	3.97%	0.58%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both MFLX and OVM in my portfolio?

MFLX and OVM have a correlation of 0.47, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MFLX or OVM?

OVM has higher volatility (1.47%) compared to MFLX (0.99%). In terms of maximum drawdown, MFLX dropped -26.76% vs OVM's -15.58%.

Which ETF is better, MFLX or OVM?

On 5-year performance, OVM leads with 1.46% vs -0.12% for MFLX. On fees, OVM is cheaper at 0.82% per year. On volatility, MFLX has been the lower-risk option at 0.99%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MFLX or OVM?

Over the 5-year period, OVM has performed better with a 1.46% return vs -0.12%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MFLX or OVM?

OVM is cheaper with a 0.82% expense ratio, compared with 0.88% for MFLX.

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

OVM has the higher dividend yield at 6.14%, compared with 4.05% for MFLX.

What is the main difference between MFLX and OVM?

They also come from different issuers: First Trust and Liquid Strategies. Their fees differ too: 0.88% for MFLX and 0.82% for OVM.

Which has better risk-adjusted returns?

OVM currently has the higher Sharpe Ratio (2.43 vs 2.28), 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.