OVM vs. MFLX

Last updated Jun 4, 2026

OVM (Overlay Shares Municipal Bond ETF) and MFLX (First Trust Flexible Municipal High Income ETF) are both Municipal Bonds funds. Both are actively managed. Over the past 5 years, OVM returned 1.59%/yr vs -0.03%/yr for MFLX. At a 0.33 correlation, their price movements are largely independent. OVM charges 0.82%/yr vs 0.88%/yr for MFLX.

Performance

OVM vs. MFLX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Overlay Shares Municipal Bond ETF (OVM) and First Trust Flexible Municipal High Income ETF (MFLX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, OVM achieves a 3.96% return, which is significantly higher than MFLX's 3.33% return.

OVM

• 1D: -0.17%
• 1M: 1.10%
• YTD: 3.96%
• 6M: 4.16%
• 1Y: 11.81%
• 3Y*: 5.37%
• 5Y*: 1.59%
• 10Y*: —

MFLX

• 1D: -0.06%
• 1M: 1.21%
• YTD: 3.33%
• 6M: 3.84%
• 1Y: 9.22%
• 3Y*: 5.48%
• 5Y*: -0.03%
• 10Y*: —

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

OVM vs. MFLX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
OVM Overlay Shares Municipal Bond ETF	3.96%	4.14%	3.42%	7.35%	-11.26%	4.22%	6.17%	1.72%
MFLX First Trust Flexible Municipal High Income ETF	3.33%	3.94%	3.74%	8.98%	-19.94%	8.43%	7.19%	0.87%

Correlation

The correlation between OVM and MFLX is 0.46, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.46
Correlation (3Y) Calculated over the trailing 3-year period	0.30
Correlation (5Y) Calculated over the trailing 5-year period	0.31
Correlation (All Time) Calculated using the full available price history since Oct 2, 2019	0.33

The correlation between OVM and MFLX shifts across timeframes, from 0.30 (3 years) to 0.46 (1 year), reflecting how their relationship changes across market environments.

OVM vs. MFLX - Sectors Allocation Comparison

Sectors	OVM	MFLX
Technology	35.6%	-
Financial Services	11.8%	15.2%
Communication Services	11.2%	-
Consumer Cyclical	10.1%	-
Healthcare	8.5%	-
Industrials	8.3%	-
Consumer Defensive	4.9%	-
Energy	3.5%	-
Utilities	2.4%	-
Real Estate	1.9%	-
Basic Materials	1.8%	-

Return for Risk

OVM vs. MFLX — Risk / Return Rank

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

OVM

OVM Risk / Return Rank: 88
OVM Sharpe Ratio Rank: 86
OVM Sortino Ratio Rank: 90
OVM Omega Ratio Rank: 90
OVM Calmar Ratio Rank: 86
OVM Martin Ratio Rank: 87

MFLX

MFLX Risk / Return Rank: 71
MFLX Sharpe Ratio Rank: 69
MFLX Sortino Ratio Rank: 78
MFLX Omega Ratio Rank: 82
MFLX Calmar Ratio Rank: 60
MFLX Martin Ratio Rank: 66

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.

OVM vs. MFLX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Overlay Shares Municipal Bond ETF (OVM) and First Trust Flexible Municipal High Income ETF (MFLX). 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.

	OVM	MFLX	Difference
Sharpe ratio: Return per unit of total volatility	2.85	2.27	+0.58
Sortino ratio: Return per unit of downside risk	4.24	3.47	+0.77
Omega ratio: Gain probability vs. loss probability	1.58	1.49	+0.09
Calmar ratio: Return relative to maximum drawdown	4.86	2.97	+1.89
Martin ratio: Return relative to average drawdown	18.92	11.95	+6.97
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

OVM vs. MFLX - Sharpe Ratio Comparison

The current OVM Sharpe Ratio is 2.85, which is comparable to the MFLX Sharpe Ratio of 2.27. The chart below compares the historical Sharpe Ratios of OVM and MFLX, 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

	OVM	MFLX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.85	2.27	+0.58
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.30	-0.00	+0.30
Sharpe Ratio (All Time) Calculated using the full available price history	0.43	0.19	+0.24

Drawdowns

OVM vs. MFLX - Drawdown Comparison

The maximum OVM drawdown since its inception was -15.58%, smaller than the maximum MFLX drawdown of -26.76%. Use the drawdown chart below to compare losses from any high point for OVM and MFLX.

Drawdown Indicators

	OVM	MFLX	Difference
Max Drawdown Largest peak-to-trough decline	-15.58%	-26.76%	+11.18%
Max Drawdown (1Y) Largest decline over 1 year	-2.44%	-3.11%	+0.67%
Max Drawdown (3Y) Largest decline over 3 years	-8.20%	-8.18%	-0.02%
Max Drawdown (5Y) Largest decline over 5 years	-15.58%	-25.88%	+10.30%
Current Drawdown Current decline from peak	-0.17%	-3.78%	+3.61%
Average Drawdown Average peak-to-trough decline	-4.01%	-8.17%	+4.16%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.63%	0.77%	-0.14%

Volatility

OVM vs. MFLX - Volatility Comparison

The current volatility for Overlay Shares Municipal Bond ETF (OVM) is 1.26%, while First Trust Flexible Municipal High Income ETF (MFLX) has a volatility of 1.41%. This indicates that OVM experiences smaller price fluctuations and is considered to be less risky than MFLX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	OVM	MFLX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.26%	1.41%	-0.15%
Volatility (6M) Calculated over the trailing 6-month period	3.36%	2.98%	+0.38%
Volatility (1Y) Calculated over the trailing 1-year period	4.16%	4.08%	+0.08%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.39%	10.36%	-4.97%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.55%	11.29%	-4.74%

OVM vs. MFLX - Expense Ratio Comparison

OVM has a 0.82% expense ratio, which is lower than MFLX's 0.88% expense ratio.

Dividends

OVM vs. MFLX - Dividend Comparison

OVM's dividend yield for the trailing twelve months is around 6.11%, more than MFLX's 4.08% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
MFLX First Trust Flexible Municipal High Income ETF	4.08%	4.06%	3.81%	3.65%	4.27%	3.69%	3.21%	2.94%	3.74%	3.80%	0.98%
OVM Overlay Shares Municipal Bond ETF	6.11%	5.45%	4.91%	4.66%	4.21%	6.10%	3.97%	0.58%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both OVM and MFLX in my portfolio?

OVM and MFLX have a correlation of 0.46, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, OVM or MFLX?

MFLX has higher volatility (1.41%) compared to OVM (1.26%). In terms of maximum drawdown, OVM dropped -15.58% vs MFLX's -26.76%.

Which ETF is better, OVM or MFLX?

On 5-year performance, OVM leads with 1.59% vs -0.03% for MFLX. On fees, OVM is cheaper at 0.82% per year. On volatility, OVM has been the lower-risk option at 1.26%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, OVM or MFLX?

Over the 5-year period, OVM has performed better with a 1.59% return vs -0.03%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, OVM or MFLX?

OVM is cheaper with a 0.82% expense ratio, compared with 0.88% for MFLX.

Which ETF pays a higher dividend yield, OVM or MFLX?

OVM has the higher dividend yield at 6.11%, compared with 4.08% for MFLX.

What is the main difference between OVM and MFLX?

They also come from different issuers: Liquid Strategies and First Trust. Their fees differ too: 0.82% for OVM and 0.88% for MFLX.

Which has better risk-adjusted returns?

OVM currently has the higher Sharpe Ratio (2.85 vs 2.27), 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.