OVF vs. VEA

Last updated Jun 24, 2026

OVF (Overlay Shares Foreign Equity ETF) and VEA (Vanguard FTSE Developed Markets ETF) are both Foreign Large Cap Equities funds. OVF is actively managed, while VEA is passively managed. Over the past 5 years, OVF returned 9.08%/yr vs 9.50%/yr for VEA. Their correlation of 0.94 suggests significant overlap in exposure. OVF charges 0.95%/yr vs 0.03%/yr for VEA.

Performance

OVF vs. VEA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Overlay Shares Foreign Equity ETF (OVF) and Vanguard FTSE Developed Markets ETF (VEA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with OVF having a 12.53% return and VEA slightly higher at 13.11%.

OVF

• 1D: -2.89%
• 1M: -0.30%
• YTD: 12.53%
• 6M: 12.22%
• 1Y: 29.96%
• 3Y*: 19.26%
• 5Y*: 9.08%
• 10Y*: —

VEA

• 1D: -3.07%
• 1M: 0.11%
• YTD: 13.11%
• 6M: 12.98%
• 1Y: 30.28%
• 3Y*: 19.47%
• 5Y*: 9.50%
• 10Y*: 10.72%

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

OVF vs. VEA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
OVF Overlay Shares Foreign Equity ETF	12.53%	33.03%	6.40%	15.25%	-17.64%	9.56%	2.65%	5.76%
VEA Vanguard FTSE Developed Markets ETF	13.11%	35.16%	3.15%	17.93%	-15.34%	11.66%	9.71%	8.33%

Correlation

The correlation between OVF and VEA is 0.98 - 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	0.98
Correlation (3Y) Calculated over the trailing 3-year period	0.97
Correlation (5Y) Calculated over the trailing 5-year period	0.95
Correlation (All Time) Calculated using the full available price history since Oct 1, 2019	0.94

The correlation between OVF and VEA has been stable across timeframes, ranging from 0.94 to 0.98 - a consistent structural relationship.

OVF vs. VEA - Sectors Allocation Comparison

Sectors	OVF	VEA
Financial Services	21.3%	22.3%
Technology	19.7%	16.6%
Industrials	16.6%	17.5%
Consumer Cyclical	8.3%	7.4%
Healthcare	8.0%	7.6%
Basic Materials	6.4%	7.5%
Consumer Defensive	5.5%	5.5%
Communication Services	4.9%	3.2%
Energy	3.7%	4.7%
Utilities	3.1%	3.0%
Real Estate	2.5%	2.5%

Return for Risk

OVF vs. VEA — Risk / Return Rank

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

OVF

OVF Risk / Return Rank: 53
OVF Sharpe Ratio Rank: 52
OVF Sortino Ratio Rank: 49
OVF Omega Ratio Rank: 51
OVF Calmar Ratio Rank: 56
OVF Martin Ratio Rank: 58

VEA

VEA Risk / Return Rank: 55
VEA Sharpe Ratio Rank: 55
VEA Sortino Ratio Rank: 53
VEA Omega Ratio Rank: 55
VEA Calmar Ratio Rank: 55
VEA Martin Ratio Rank: 59

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. VEA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Overlay Shares Foreign Equity ETF (OVF) and Vanguard FTSE Developed Markets ETF (VEA). 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.

	OVF	VEA	Difference
Sharpe ratio: Return per unit of total volatility	1.69	1.81	-0.12
Sortino ratio: Return per unit of downside risk	2.30	2.48	-0.18
Omega ratio: Gain probability vs. loss probability	1.31	1.33	-0.03
Calmar ratio: Return relative to maximum drawdown	2.59	2.62	-0.03
Martin ratio: Return relative to average drawdown	9.81	10.06	-0.26

OVF vs. VEA - Sharpe Ratio Comparison

The current OVF Sharpe Ratio is 1.69, which is comparable to the VEA Sharpe Ratio of 1.81. The chart below compares the historical Sharpe Ratios of OVF and VEA, 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

OVF vs. VEA - Drawdown Comparison

The maximum OVF drawdown since its inception was -30.07%, smaller than the maximum VEA drawdown of -60.68%. Use the drawdown chart below to compare losses from any high point for OVF and VEA.

Drawdown Indicators

	OVF	VEA	Difference
Max Drawdown Largest peak-to-trough decline	-30.07%	-60.68%	+30.61%
Max Drawdown (1Y) Largest decline over 1 year	-11.64%	-11.63%	-0.01%
Max Drawdown (3Y) Largest decline over 3 years	-15.89%	-13.45%	-2.44%
Max Drawdown (5Y) Largest decline over 5 years	-30.07%	-29.71%	-0.36%
Max Drawdown (10Y) Largest decline over 10 years	—	-35.73%	—
Current Drawdown Current decline from peak	-2.90%	-3.07%	+0.17%
Average Drawdown Average peak-to-trough decline	-7.40%	-13.26%	+5.86%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.06%	3.02%	+0.04%

Volatility

OVF vs. VEA - Volatility Comparison

Overlay Shares Foreign Equity ETF (OVF) and Vanguard FTSE Developed Markets ETF (VEA) have volatilities of 7.25% and 7.09%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	OVF	VEA	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.25%	7.09%	+0.16%
Volatility (6M) Calculated over the trailing 6-month period	15.46%	14.74%	+0.72%
Volatility (1Y) Calculated over the trailing 1-year period	17.85%	16.79%	+1.06%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.03%	16.76%	-0.73%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.24%	17.21%	+0.03%

OVF vs. VEA - Expense Ratio Comparison

OVF has a 0.95% expense ratio, which is higher than VEA's 0.03% expense ratio.

Dividends

OVF vs. VEA - Dividend Comparison

OVF's dividend yield for the trailing twelve months is around 9.74%, more than VEA's 2.58% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
OVF Overlay Shares Foreign Equity ETF	9.74%	6.32%	5.13%	5.17%	4.50%	4.88%	2.55%	2.12%	0.00%	0.00%	0.00%	0.00%
VEA Vanguard FTSE Developed Markets ETF	2.58%	3.22%	3.35%	3.15%	2.91%	3.16%	2.04%	3.04%	3.35%	2.77%	3.05%	2.92%

Frequently Asked Questions

Can I hold both OVF and VEA in my portfolio?

With a correlation of 0.98, OVF and VEA 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 VEA?

OVF has higher volatility (7.25%) compared to VEA (7.09%). In terms of maximum drawdown, OVF dropped -30.07% vs VEA's -60.68%.

Which ETF is better, OVF or VEA?

On 5-year performance, VEA leads with 9.50% vs 9.08% for OVF. On fees, VEA is cheaper at 0.03% per year. On volatility, VEA has been the lower-risk option at 7.09%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, OVF or VEA?

Over the 5-year period, VEA has performed better with a 9.50% return vs 9.08%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, OVF or VEA?

VEA is cheaper with a 0.03% expense ratio, compared with 0.95% for OVF.

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

OVF has the higher dividend yield at 9.74%, compared with 2.58% for VEA.

What is the main difference between OVF and VEA?

They also come from different issuers: Liquid Strategies and Vanguard. Their fees differ too: 0.95% for OVF and 0.03% for VEA.

Which has better risk-adjusted returns?

VEA currently has the higher Sharpe Ratio (1.81 vs 1.69), 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.