OVLH vs. USMC

Last updated Jun 23, 2026

OVLH (Overlay Shares Hedged Large Cap Equity ETF) and USMC (Principal U.S. Mega-Cap ETF) are both exchange-traded funds - OVLH is a Equity Hedged fund actively managed by Liquid Strategies, while USMC is a Large Cap Growth Equities fund tracking the Nasdaq US Mega Cap Select Leaders Index. OVLH is actively managed, while USMC is passively managed. Over the past 5 years, OVLH returned 9.41%/yr vs 15.07%/yr for USMC. Their correlation of 0.92 suggests significant overlap in exposure. OVLH charges 0.80%/yr vs 0.12%/yr for USMC.

Performance

OVLH vs. USMC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Overlay Shares Hedged Large Cap Equity ETF (OVLH) 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, OVLH achieves a 5.93% return, which is significantly lower than USMC's 7.90% return.

OVLH

• 1D: -0.39%
• 1M: -0.41%
• YTD: 5.93%
• 6M: 5.68%
• 1Y: 17.12%
• 3Y*: 15.81%
• 5Y*: 9.41%
• 10Y*: —

USMC

• 1D: -0.37%
• 1M: 1.06%
• YTD: 7.90%
• 6M: 7.36%
• 1Y: 23.29%
• 3Y*: 20.97%
• 5Y*: 15.07%
• 10Y*: —

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

OVLH vs. USMC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
OVLH Overlay Shares Hedged Large Cap Equity ETF	5.93%	15.77%	18.44%	16.93%	-16.16%	19.70%
USMC Principal U.S. Mega-Cap ETF	7.90%	14.99%	29.82%	31.57%	-17.17%	26.19%

Correlation

The correlation between OVLH 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	0.91
Correlation (5Y) Calculated over the trailing 5-year period	0.92
Correlation (All Time) Calculated using the full available price history since Jan 15, 2021	0.92

The correlation between OVLH and USMC has been stable across timeframes, ranging from 0.91 to 0.92 - a consistent structural relationship.

OVLH vs. USMC - Sectors Allocation Comparison

Sectors	OVLH	USMC
Technology	35.7%	33.3%
Financial Services	11.6%	18.2%
Communication Services	11.2%	13.7%
Consumer Cyclical	10.2%	8.3%
Healthcare	8.5%	8.1%
Industrials	8.3%	5.6%
Consumer Defensive	4.9%	8.5%
Energy	3.5%	4.3%
Utilities	2.4%	-
Real Estate	1.9%	-
Basic Materials	1.8%	-

Return for Risk

OVLH vs. USMC — Risk / Return Rank

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

OVLH

OVLH Risk / Return Rank: 59
OVLH Sharpe Ratio Rank: 60
OVLH Sortino Ratio Rank: 60
OVLH Omega Ratio Rank: 58
OVLH Calmar Ratio Rank: 56
OVLH Martin Ratio Rank: 62

USMC

USMC Risk / Return Rank: 54
USMC Sharpe Ratio Rank: 59
USMC Sortino Ratio Rank: 58
USMC Omega Ratio Rank: 55
USMC Calmar Ratio Rank: 47
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.

OVLH vs. USMC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Overlay Shares Hedged Large Cap Equity ETF (OVLH) 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.

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.

	OVLH	USMC	Difference
Sharpe ratio: Return per unit of total volatility	1.93	1.91	+0.02
Sortino ratio: Return per unit of downside risk	2.74	2.69	+0.05
Omega ratio: Gain probability vs. loss probability	1.35	1.34	+0.01
Calmar ratio: Return relative to maximum drawdown	2.70	2.27	+0.43
Martin ratio: Return relative to average drawdown	10.71	8.58	+2.13

OVLH vs. USMC - Sharpe Ratio Comparison

The current OVLH Sharpe Ratio is 1.93, which is comparable to the USMC Sharpe Ratio of 1.91. The chart below compares the historical Sharpe Ratios of OVLH 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.

Drawdowns

OVLH vs. USMC - Drawdown Comparison

The maximum OVLH drawdown since its inception was -20.69%, smaller than the maximum USMC drawdown of -29.97%. Use the drawdown chart below to compare losses from any high point for OVLH and USMC.

Drawdown Indicators

	OVLH	USMC	Difference
Max Drawdown Largest peak-to-trough decline	-20.69%	-29.97%	+9.28%
Max Drawdown (1Y) Largest decline over 1 year	-6.36%	-10.30%	+3.94%
Max Drawdown (3Y) Largest decline over 3 years	-9.57%	-19.12%	+9.55%
Max Drawdown (5Y) Largest decline over 5 years	-20.69%	-24.09%	+3.40%
Current Drawdown Current decline from peak	-1.80%	-1.11%	-0.69%
Average Drawdown Average peak-to-trough decline	-4.99%	-4.39%	-0.60%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.60%	2.72%	-1.12%

Volatility

OVLH vs. USMC - Volatility Comparison

The current volatility for Overlay Shares Hedged Large Cap Equity ETF (OVLH) is 3.41%, while Principal U.S. Mega-Cap ETF (USMC) has a volatility of 4.20%. This indicates that OVLH experiences smaller price fluctuations and is considered to be less risky than USMC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	OVLH	USMC	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.41%	4.20%	-0.79%
Volatility (6M) Calculated over the trailing 6-month period	6.83%	9.35%	-2.52%
Volatility (1Y) Calculated over the trailing 1-year period	8.92%	12.26%	-3.34%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.77%	16.42%	-4.65%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.82%	18.24%	-6.42%

OVLH vs. USMC - Expense Ratio Comparison

OVLH has a 0.80% expense ratio, which is higher than USMC's 0.12% expense ratio.

Dividends

OVLH vs. USMC - Dividend Comparison

OVLH's dividend yield for the trailing twelve months is around 0.28%, less than USMC's 0.75% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
OVLH Overlay Shares Hedged Large Cap Equity ETF	0.28%	0.30%	0.32%	0.83%	0.79%	0.40%	0.00%	0.00%	0.00%	0.00%
USMC Principal U.S. Mega-Cap ETF	0.75%	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 OVLH and USMC in my portfolio?

With a correlation of 0.91, OVLH 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, OVLH or USMC?

USMC has higher volatility (4.20%) compared to OVLH (3.41%). In terms of maximum drawdown, OVLH dropped -20.69% vs USMC's -29.97%.

Which ETF is better, OVLH or USMC?

On 5-year performance, USMC leads with 15.07% vs 9.41% for OVLH. On fees, USMC is cheaper at 0.12% per year. On volatility, OVLH has been the lower-risk option at 3.41%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, OVLH or USMC?

Over the 5-year period, USMC has performed better with a 15.07% return vs 9.41%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, OVLH or USMC?

USMC is cheaper with a 0.12% expense ratio, compared with 0.80% for OVLH.

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

USMC has the higher dividend yield at 0.75%, compared with 0.28% for OVLH.

What is the main difference between OVLH and USMC?

OVLH is categorized as Equity Hedged, while USMC is Large Cap Growth Equities. They also come from different issuers: Liquid Strategies and Principal. Their fees differ too: 0.80% for OVLH and 0.12% for USMC.

Which has better risk-adjusted returns?

OVLH currently has the higher Sharpe Ratio (1.93 vs 1.91), 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.