OVL vs. USMC

Last updated Jun 4, 2026

OVL (Overlay Shares Large Cap Equity ETF) and USMC (Principal U.S. Mega-Cap ETF) are both Large Cap Growth Equities funds. OVL is actively managed, while USMC is passively managed. Over the past 5 years, OVL returned 14.26%/yr vs 15.40%/yr for USMC. Their correlation of 0.93 suggests significant overlap in exposure. OVL charges 0.79%/yr vs 0.12%/yr for USMC.

Performance

OVL vs. USMC - Performance Comparison

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

Returns By Period

In the year-to-date period, OVL achieves a 13.20% return, which is significantly higher than USMC's 8.73% return.

OVL

• 1D: -0.94%
• 1M: 5.25%
• YTD: 13.20%
• 6M: 13.15%
• 1Y: 33.24%
• 3Y*: 24.25%
• 5Y*: 14.26%
• 10Y*: —

USMC

• 1D: -0.35%
• 1M: 5.52%
• YTD: 8.73%
• 6M: 8.24%
• 1Y: 23.60%
• 3Y*: 21.98%
• 5Y*: 15.40%
• 10Y*: —

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

OVL vs. USMC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
OVL Overlay Shares Large Cap Equity ETF	13.20%	17.81%	27.91%	28.01%	-22.18%	32.40%	20.17%	10.84%
USMC Principal U.S. Mega-Cap ETF	8.73%	14.99%	29.82%	31.57%	-17.17%	26.30%	16.05%	8.78%

Correlation

The correlation between OVL and USMC is 0.91, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.91
Correlation (3Y) Calculated over the trailing 3-year period	0.92
Correlation (5Y) Calculated over the trailing 5-year period	0.94
Correlation (All Time) Calculated using the full available price history since Oct 2, 2019	0.93

The correlation between OVL and USMC has been stable across timeframes, ranging from 0.91 to 0.94 - a consistent structural relationship.

OVL vs. USMC - Sectors Allocation Comparison

Sectors	OVL	USMC
Technology	35.7%	29.1%
Financial Services	11.6%	19.6%
Communication Services	11.3%	14.7%
Consumer Cyclical	10.2%	8.4%
Healthcare	8.5%	8.1%
Industrials	8.3%	5.6%
Consumer Defensive	4.9%	9.6%
Energy	3.5%	4.8%
Utilities	2.4%	-
Real Estate	1.9%	-
Basic Materials	1.8%	-

Return for Risk

OVL vs. USMC — Risk / Return Rank

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

OVL

OVL Risk / Return Rank: 74
OVL Sharpe Ratio Rank: 72
OVL Sortino Ratio Rank: 69
OVL Omega Ratio Rank: 70
OVL Calmar Ratio Rank: 75
OVL Martin Ratio Rank: 83

USMC

USMC Risk / Return Rank: 54
USMC Sharpe Ratio Rank: 58
USMC Sortino Ratio Rank: 59
USMC Omega Ratio Rank: 56
USMC Calmar Ratio Rank: 46
USMC Martin Ratio Rank: 51

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.

OVL vs. USMC - Risk-Adjusted Trends Comparison

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

	OVL	USMC	Difference
Sharpe ratio: Return per unit of total volatility	2.39	2.01	+0.38
Sortino ratio: Return per unit of downside risk	3.19	2.84	+0.35
Omega ratio: Gain probability vs. loss probability	1.43	1.35	+0.08
Calmar ratio: Return relative to maximum drawdown	3.82	2.30	+1.52
Martin ratio: Return relative to average drawdown	17.04	8.80	+8.23
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

OVL vs. USMC - Sharpe Ratio Comparison

The current OVL Sharpe Ratio is 2.39, which is comparable to the USMC Sharpe Ratio of 2.01. The chart below compares the historical Sharpe Ratios of OVL and USMC, 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

	OVL	USMC	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.39	2.01	+0.38
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.72	0.95	-0.22
Sharpe Ratio (All Time) Calculated using the full available price history	0.80	0.84	-0.04

Drawdowns

OVL vs. USMC - Drawdown Comparison

The maximum OVL drawdown since its inception was -35.49%, which is greater than USMC's maximum drawdown of -29.97%. Use the drawdown chart below to compare losses from any high point for OVL and USMC.

Drawdown Indicators

	OVL	USMC	Difference
Max Drawdown Largest peak-to-trough decline	-35.49%	-29.97%	-5.52%
Max Drawdown (1Y) Largest decline over 1 year	-8.73%	-10.30%	+1.57%
Max Drawdown (3Y) Largest decline over 3 years	-21.73%	-19.12%	-2.61%
Max Drawdown (5Y) Largest decline over 5 years	-29.23%	-24.09%	-5.14%
Current Drawdown Current decline from peak	-0.94%	-0.35%	-0.59%
Average Drawdown Average peak-to-trough decline	-6.71%	-4.40%	-2.31%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.96%	2.69%	-0.73%

Volatility

OVL vs. USMC - Volatility Comparison

Overlay Shares Large Cap Equity ETF (OVL) has a higher volatility of 3.06% compared to Principal U.S. Mega-Cap ETF (USMC) at 2.52%. This indicates that OVL's price experiences larger fluctuations and is considered to be riskier than USMC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	OVL	USMC	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.06%	2.52%	+0.54%
Volatility (6M) Calculated over the trailing 6-month period	10.47%	8.68%	+1.79%
Volatility (1Y) Calculated over the trailing 1-year period	13.99%	11.81%	+2.18%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.79%	16.36%	+3.43%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.54%	18.25%	+4.29%

OVL vs. USMC - Expense Ratio Comparison

OVL has a 0.79% expense ratio, which is higher than USMC's 0.12% expense ratio.

Dividends

OVL vs. USMC - Dividend Comparison

OVL's dividend yield for the trailing twelve months is around 6.18%, more than USMC's 0.74% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
OVL Overlay Shares Large Cap Equity ETF	6.18%	2.99%	3.10%	3.33%	3.85%	3.63%	2.43%	0.50%	0.00%	0.00%
USMC Principal U.S. Mega-Cap ETF	0.74%	0.79%	1.04%	1.35%	1.78%	1.53%	1.55%	2.01%	2.28%	0.24%

Frequently Asked Questions

Can I hold both OVL and USMC in my portfolio?

With a correlation of 0.91, OVL and USMC 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, OVL or USMC?

OVL has higher volatility (3.06%) compared to USMC (2.52%). In terms of maximum drawdown, OVL dropped -35.49% vs USMC's -29.97%.

Which ETF is better, OVL or USMC?

On 5-year performance, USMC leads with 15.40% vs 14.26% for OVL. On fees, USMC is cheaper at 0.12% per year. On volatility, USMC has been the lower-risk option at 2.52%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, OVL or USMC?

Over the 5-year period, USMC has performed better with a 15.40% return vs 14.26%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, OVL or USMC?

USMC is cheaper with a 0.12% expense ratio, compared with 0.79% for OVL.

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

OVL has the higher dividend yield at 6.18%, compared with 0.74% for USMC.

What is the main difference between OVL and USMC?

They also come from different issuers: Liquid Strategies and Principal. Their fees differ too: 0.79% for OVL and 0.12% for USMC.

Which has better risk-adjusted returns?

OVL currently has the higher Sharpe Ratio (2.39 vs 2.01), 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.