OVF vs. EFA

Last updated Jun 4, 2026

OVF (Overlay Shares Foreign Equity ETF) and EFA (iShares MSCI EAFE ETF) are both Foreign Large Cap Equities funds. OVF is actively managed, while EFA is passively managed. Over the past 5 years, OVF returned 9.56%/yr vs 8.29%/yr for EFA. Their correlation of 0.93 suggests significant overlap in exposure. OVF charges 0.95%/yr vs 0.32%/yr for EFA.

Performance

OVF vs. EFA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Overlay Shares Foreign Equity ETF (OVF) and iShares MSCI EAFE ETF (EFA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, OVF achieves a 14.61% return, which is significantly higher than EFA's 8.42% return.

OVF

• 1D: -0.99%
• 1M: 4.77%
• YTD: 14.61%
• 6M: 17.49%
• 1Y: 33.00%
• 3Y*: 19.98%
• 5Y*: 9.56%
• 10Y*: —

EFA

• 1D: -0.86%
• 1M: 3.40%
• YTD: 8.42%
• 6M: 10.94%
• 1Y: 21.06%
• 3Y*: 16.44%
• 5Y*: 8.29%
• 10Y*: 9.11%

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

OVF vs. EFA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
OVF Overlay Shares Foreign Equity ETF	14.61%	33.03%	6.40%	15.25%	-17.64%	9.56%	2.65%	5.81%
EFA iShares MSCI EAFE ETF	8.42%	31.55%	3.49%	18.36%	-14.39%	11.45%	7.60%	8.75%

Correlation

The correlation between OVF and EFA is 0.97 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.97
Correlation (3Y) Calculated over the trailing 3-year period	0.96
Correlation (5Y) Calculated over the trailing 5-year period	0.95
Correlation (All Time) Calculated using the full available price history since Oct 2, 2019	0.93

The correlation between OVF and EFA has been stable across timeframes, ranging from 0.93 to 0.97 - a consistent structural relationship.

OVF vs. EFA - Sectors Allocation Comparison

Sectors	OVF	EFA
Financial Services	21.6%	24.6%
Technology	17.5%	10.4%
Industrials	17.2%	19.9%
Consumer Cyclical	8.5%	7.6%
Healthcare	8.2%	10.6%
Basic Materials	6.6%	5.9%
Consumer Defensive	5.6%	6.7%
Communication Services	5.1%	4.5%
Energy	3.8%	4.0%
Utilities	3.2%	4.0%
Real Estate	2.7%	1.9%

Return for Risk

OVF vs. EFA — Risk / Return Rank

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

OVF

OVF Risk / Return Rank: 58
OVF Sharpe Ratio Rank: 58
OVF Sortino Ratio Rank: 56
OVF Omega Ratio Rank: 57
OVF Calmar Ratio Rank: 57
OVF Martin Ratio Rank: 61

EFA

EFA Risk / Return Rank: 39
EFA Sharpe Ratio Rank: 39
EFA Sortino Ratio Rank: 39
EFA Omega Ratio Rank: 38
EFA Calmar Ratio Rank: 37
EFA Martin Ratio Rank: 42

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.

OVF vs. EFA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Overlay Shares Foreign Equity ETF (OVF) and iShares MSCI EAFE ETF (EFA). 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.

	OVF	EFA	Difference
Sharpe ratio Return per unit of total volatility	1.98	1.41	+0.57
Sortino ratio Return per unit of downside risk	2.71	2.04	+0.67
Omega ratio Gain probability vs. loss probability	1.35	1.26	+0.10
Calmar ratio Return relative to maximum drawdown	2.85	1.85	+1.00
Martin ratio Return relative to average drawdown	10.99	6.94	+4.05
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

OVF vs. EFA - Sharpe Ratio Comparison

The current OVF Sharpe Ratio is 1.98, which is higher than the EFA Sharpe Ratio of 1.41. The chart below compares the historical Sharpe Ratios of OVF and EFA, 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

	OVF	EFA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.98	1.41	+0.57
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.61	0.51	+0.10
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.53	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.56	0.31	+0.25

Drawdowns

OVF vs. EFA - Drawdown Comparison

The maximum OVF drawdown since its inception was -30.07%, smaller than the maximum EFA drawdown of -61.04%. Use the drawdown chart below to compare losses from any high point for OVF and EFA.

Drawdown Indicators

	OVF	EFA	Difference
Max Drawdown Largest peak-to-trough decline	-30.07%	-61.04%	+30.97%
Max Drawdown (1Y) Largest decline over 1 year	-11.64%	-11.42%	-0.22%
Max Drawdown (3Y) Largest decline over 3 years	-15.89%	-14.05%	-1.84%
Max Drawdown (5Y) Largest decline over 5 years	-30.07%	-29.53%	-0.54%
Max Drawdown (10Y) Largest decline over 10 years	—	-34.19%	—
Current Drawdown Current decline from peak	-0.99%	-1.46%	+0.47%
Average Drawdown Average peak-to-trough decline	-7.44%	-11.93%	+4.49%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.01%	3.04%	-0.03%

Volatility

OVF vs. EFA - Volatility Comparison

Overlay Shares Foreign Equity ETF (OVF) has a higher volatility of 5.44% compared to iShares MSCI EAFE ETF (EFA) at 4.98%. This indicates that OVF's price experiences larger fluctuations and is considered to be riskier than EFA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	OVF	EFA	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.44%	4.98%	+0.46%
Volatility (6M) Calculated over the trailing 6-month period	14.08%	12.51%	+1.57%
Volatility (1Y) Calculated over the trailing 1-year period	16.75%	15.05%	+1.70%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.77%	16.48%	-0.71%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.12%	17.26%	-0.14%

OVF vs. EFA - Expense Ratio Comparison

OVF has a 0.95% expense ratio, which is higher than EFA's 0.32% expense ratio.

Dividends

OVF vs. EFA - Dividend Comparison

OVF's dividend yield for the trailing twelve months is around 9.57%, more than EFA's 3.12% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EFA iShares MSCI EAFE ETF	3.12%	3.38%	3.24%	2.98%	2.69%	3.33%	2.13%	3.10%	3.39%	2.57%	3.07%	2.76%
OVF Overlay Shares Foreign Equity ETF	9.57%	6.32%	5.13%	5.17%	4.50%	4.88%	2.55%	2.12%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both OVF and EFA in my portfolio?

With a correlation of 0.97, OVF and EFA move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, OVF or EFA?

OVF has higher volatility (5.44%) compared to EFA (4.98%). In terms of maximum drawdown, OVF dropped -30.07% vs EFA's -61.04%.

Which ETF is better, OVF or EFA?

On 5-year performance, OVF leads with 9.56% vs 8.29% for EFA. On fees, EFA is cheaper at 0.32% per year. On volatility, EFA has been the lower-risk option at 4.98%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, OVF or EFA?

Over the 5-year period, OVF has performed better with a 9.56% return vs 8.29%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, OVF or EFA?

EFA is cheaper with a 0.32% expense ratio, compared with 0.95% for OVF.

Which ETF pays a higher dividend yield, OVF or EFA?

OVF has the higher dividend yield at 9.57%, compared with 3.12% for EFA.

What is the main difference between OVF and EFA?

They also come from different issuers: Liquid Strategies and iShares. Their fees differ too: 0.95% for OVF and 0.32% for EFA.

Which has better risk-adjusted returns?

OVF currently has the higher Sharpe Ratio (1.98 vs 1.41), 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.