OVL vs. SCHD

Last updated Aug 2, 2026

OVL (Overlay Shares Large Cap Equity ETF) and SCHD (Schwab U.S. Dividend Equity ETF) are both exchange-traded funds - OVL is a Derivative Income fund actively managed by Liquid Strategies, while SCHD is a Dividend fund tracking the Dow Jones U.S. Dividend 100 Index. OVL is actively managed, while SCHD is passively managed. Over the past 5 years, OVL returned 12.90%/yr vs 9.54%/yr for SCHD. Their 0.70 correlation means they have sometimes moved together and sometimes differently. OVL charges 0.79%/yr vs 0.06%/yr for SCHD.

Performance

OVL vs. SCHD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Overlay Shares Large Cap Equity ETF (OVL) and Schwab U.S. Dividend Equity ETF (SCHD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, OVL achieves a 11.72% return, which is significantly lower than SCHD's 24.03% return.

OVL

• 1D: 0.87%
• 1M: -0.03%
• 6M: 9.54%
• YTD: 11.72%
• 1Y: 24.78%
• 3Y*: 20.77%
• 5Y*: 12.90%
• 10Y*: —
• ALL TIME*: 16.88%

SCHD

• 1D: 0.18%
• 1M: 3.33%
• 6M: 14.09%
• YTD: 24.03%
• 1Y: 31.54%
• 3Y*: 14.19%
• 5Y*: 9.54%
• 10Y*: 12.76%
• ALL TIME*: 13.39%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
OVL Overlay Shares Large Cap Equity ETF	$8.43M	$7.51M	$6.20M
SCHD Schwab U.S. Dividend Equity ETF	$786.88M	$715.86M	$685.58M

OVL vs. SCHD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
OVL Overlay Shares Large Cap Equity ETF	11.72%	17.81%	27.91%	28.01%	-22.18%	32.40%	20.17%	8.73%
SCHD Schwab U.S. Dividend Equity ETF	24.03%	4.34%	11.66%	4.54%	-3.26%	29.87%	15.03%	6.60%

Correlation

The correlation between OVL and SCHD is 0.27, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.27
Correlation (3Y) Balances recent behavior with more history.	0.51
Correlation (5Y) Shows whether the relationship held over a longer period.	0.67
Correlation (All Time) Calculated using the full available price history since Oct 1, 2019	0.70

Over the past year, the correlation between OVL and SCHD has dropped to 0.27 - well below their long-term average of 0.70, suggesting their price drivers have been diverging.

OVL vs. SCHD - Sectors Allocation Comparison

Sectors	OVL	SCHD
Technology	39.1%	12.7%
Financial Services	10.9%	9.9%
Communication Services	10.7%	6.2%
Consumer Cyclical	9.9%	7.7%
Healthcare	8.3%	20.8%
Industrials	7.8%	7.8%
Consumer Defensive	4.5%	20.6%
Energy	3.1%	14.1%
Utilities	2.1%	0.1%
Real Estate	1.8%	-
Basic Materials	1.7%	1.2%

Return for Risk

OVL vs. SCHD — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

OVL

OVL Risk / Return Rank: 68
OVL Sharpe Ratio Rank: 65
OVL Sortino Ratio Rank: 61
OVL Omega Ratio Rank: 62
OVL Calmar Ratio Rank: 74
OVL Martin Ratio Rank: 79

SCHD

SCHD Risk / Return Rank: 95
SCHD Sharpe Ratio Rank: 96
SCHD Sortino Ratio Rank: 96
SCHD Omega Ratio Rank: 94
SCHD Calmar Ratio Rank: 96
SCHD Martin Ratio Rank: 93

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

OVL vs. SCHD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Overlay Shares Large Cap Equity ETF (OVL) and Schwab U.S. Dividend Equity ETF (SCHD). 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.

	OVL	SCHD	Difference
Sharpe ratio: Return per unit of total volatility	1.48	2.81	-1.33
Sortino ratio: Return per unit of downside risk	2.04	4.37	-2.33
Omega ratio: Gain probability vs. loss probability	1.26	1.51	-0.24
Calmar ratio: Return relative to maximum drawdown	2.57	6.74	-4.17
Martin ratio: Return relative to average drawdown	9.98	17.01	-7.04

OVL vs. SCHD - Sharpe Ratio Comparison

The current OVL Sharpe Ratio is 1.48, which is lower than the SCHD Sharpe Ratio of 2.81. The chart below compares the historical Sharpe Ratios of OVL and SCHD, 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

OVL vs. SCHD - Drawdown Comparison

The maximum OVL drawdown since its inception was -35.49%, which is greater than SCHD's maximum drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for OVL and SCHD.

Drawdown Indicators

	OVL	SCHD	Difference
Max Drawdown Largest peak-to-trough decline	-35.49%	-33.37%	-2.12%
Max Drawdown (1Y) Largest decline over 1 year	-8.73%	-4.61%	-4.12%
Max Drawdown (3Y) Largest decline over 3 years	-21.73%	-16.13%	-5.60%
Max Drawdown (5Y) Largest decline over 5 years	-29.23%	-16.85%	-12.38%
Max Drawdown (10Y) Largest decline over 10 years	—	-33.37%	—
Current Drawdown Current decline from peak	-2.24%	-1.24%	-1.00%
Average Drawdown Average peak-to-trough decline	-6.62%	-3.30%	-3.32%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.25%	1.82%	+0.43%

Volatility

OVL vs. SCHD - Volatility Comparison

Overlay Shares Large Cap Equity ETF (OVL) and Schwab U.S. Dividend Equity ETF (SCHD) have volatilities of 4.27% and 4.11%, 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

	OVL	SCHD	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.27%	4.11%	+0.16%
Volatility (6M) Calculated over the trailing 6-month period	11.44%	8.11%	+3.33%
Volatility (1Y) Calculated over the trailing 1-year period	15.13%	11.13%	+4.00%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.91%	14.39%	+5.52%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.44%	16.72%	+5.72%

OVL vs. SCHD - Expense Ratio Comparison

OVL has a 0.79% expense ratio, which is higher than SCHD's 0.06% expense ratio.

Dividends

OVL vs. SCHD - Dividend Comparison

OVL's dividend yield for the trailing twelve months is around 7.41%, more than SCHD's 3.13% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
OVL Overlay Shares Large Cap Equity ETF	7.41%	2.99%	3.10%	3.33%	3.85%	3.63%	2.43%	0.50%	0.00%	0.00%	0.00%	0.00%
SCHD Schwab U.S. Dividend Equity ETF	3.13%	3.82%	3.64%	3.49%	3.39%	2.78%	3.16%	2.98%	3.06%	2.63%	2.89%	2.97%

Frequently Asked Questions

Can I hold both OVL and SCHD in my portfolio?

OVL and SCHD have a correlation of 0.27, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, OVL or SCHD?

OVL has higher volatility (4.27%) compared to SCHD (4.11%). In terms of maximum drawdown, OVL dropped -35.49% vs SCHD's -33.37%.

Which ETF is better, OVL or SCHD?

On 5-year performance, OVL leads with 12.90% vs 9.54% for SCHD. On fees, SCHD is cheaper at 0.06% per year. On volatility, SCHD has been the lower-risk option at 4.11%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, OVL or SCHD?

Over the 5-year period, OVL has performed better with a 12.90% return vs 9.54%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, OVL or SCHD?

SCHD is cheaper with a 0.06% expense ratio, compared with 0.79% for OVL.

Which ETF pays a higher dividend yield, OVL or SCHD?

OVL has the higher dividend yield at 7.41%, compared with 3.13% for SCHD.

What is the main difference between OVL and SCHD?

OVL is categorized as Derivative Income, while SCHD is Dividend. They also come from different issuers: Liquid Strategies and Charles Schwab. Their fees differ too: 0.79% for OVL and 0.06% for SCHD.

Which has better risk-adjusted returns?

SCHD currently has the higher Sharpe Ratio (2.81 vs 1.48), 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.