OVM vs. ZTAX

Last updated Aug 2, 2026

OVM (Overlay Shares Municipal Bond ETF) and ZTAX (X-Square Municipal Income Tax Free ETF) are both Municipal Bonds funds. Both are actively managed. Over the past 3 years, OVM returned 4.39%/yr vs 5.01%/yr for ZTAX. Their 0.02 correlation means their historical movements had little consistent relationship. OVM charges 0.82%/yr vs 1.14%/yr for ZTAX.

Performance

OVM vs. ZTAX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Overlay Shares Municipal Bond ETF (OVM) and X-Square Municipal Income Tax Free ETF (ZTAX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, OVM achieves a 2.26% return, which is significantly lower than ZTAX's 3.71% return.

OVM

• 1D: 0.80%
• 1M: -1.88%
• 6M: 1.00%
• YTD: 2.26%
• 1Y: 7.80%
• 3Y*: 4.39%
• 5Y*: 1.01%
• 10Y*: —
• ALL TIME*: 2.45%

ZTAX

• 1D: -0.20%
• 1M: -0.78%
• 6M: 3.66%
• YTD: 3.71%
• 1Y: 9.54%
• 3Y*: 5.01%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 4.46%

*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)
OVM Overlay Shares Municipal Bond ETF	$294.19K	$270.99K	$329.94K
ZTAX X-Square Municipal Income Tax Free ETF	$9.06K	$122.06K	$76.67K

OVM vs. ZTAX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
OVM Overlay Shares Municipal Bond ETF	2.26%	4.14%	3.42%	4.80%
ZTAX X-Square Municipal Income Tax Free ETF	3.71%	-1.02%	7.98%	3.74%

Correlation

The correlation between OVM and ZTAX is -0.09, meaning there was essentially no consistent relationship between their historical price movements. Each responded to its own set of market drivers.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	-0.09
Correlation (3Y) Balances recent behavior with more history.	0.02
Correlation (All Time) Calculated using the full available price history since May 19, 2023	0.02

The correlation between OVM and ZTAX shifts across timeframes, from -0.09 (1 year) to 0.02 (all time), reflecting how their relationship changes across market environments.

Return for Risk

OVM vs. ZTAX — Risk / Return Rank

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

OVM

OVM Risk / Return Rank: 77
OVM Sharpe Ratio Rank: 76
OVM Sortino Ratio Rank: 76
OVM Omega Ratio Rank: 78
OVM Calmar Ratio Rank: 77
OVM Martin Ratio Rank: 79

ZTAX

ZTAX Risk / Return Rank: 20
ZTAX Sharpe Ratio Rank: 16
ZTAX Sortino Ratio Rank: 18
ZTAX Omega Ratio Rank: 23
ZTAX Calmar Ratio Rank: 24
ZTAX Martin Ratio Rank: 21

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.

OVM vs. ZTAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Overlay Shares Municipal Bond ETF (OVM) and X-Square Municipal Income Tax Free ETF (ZTAX). 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.

	OVM	ZTAX	Difference
Sharpe ratio: Return per unit of total volatility	1.72	0.25	+1.47
Sortino ratio: Return per unit of downside risk	2.46	0.59	+1.87
Omega ratio: Gain probability vs. loss probability	1.32	1.10	+0.22
Calmar ratio: Return relative to maximum drawdown	2.72	0.72	+2.00
Martin ratio: Return relative to average drawdown	10.05	1.48	+8.57

OVM vs. ZTAX - Sharpe Ratio Comparison

The current OVM Sharpe Ratio is 1.72, which is higher than the ZTAX Sharpe Ratio of 0.25. The chart below compares the historical Sharpe Ratios of OVM and ZTAX, 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

OVM vs. ZTAX - Drawdown Comparison

The maximum OVM drawdown since its inception was -15.58%, roughly equal to the maximum ZTAX drawdown of -15.33%. Use the drawdown chart below to compare losses from any high point for OVM and ZTAX.

Drawdown Indicators

	OVM	ZTAX	Difference
Max Drawdown Largest peak-to-trough decline	-15.58%	-15.33%	-0.25%
Max Drawdown (1Y) Largest decline over 1 year	-2.88%	-11.26%	+8.38%
Max Drawdown (3Y) Largest decline over 3 years	-8.20%	-15.33%	+7.13%
Max Drawdown (5Y) Largest decline over 5 years	-15.58%	—	—
Current Drawdown Current decline from peak	-2.10%	-8.94%	+6.84%
Average Drawdown Average peak-to-trough decline	-3.94%	-6.90%	+2.96%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.78%	5.43%	-4.65%

Volatility

OVM vs. ZTAX - Volatility Comparison

The current volatility for Overlay Shares Municipal Bond ETF (OVM) is 1.73%, while X-Square Municipal Income Tax Free ETF (ZTAX) has a volatility of 6.77%. This indicates that OVM experiences smaller price fluctuations and is considered to be less risky than ZTAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	OVM	ZTAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.73%	6.77%	-5.04%
Volatility (6M) Calculated over the trailing 6-month period	3.57%	25.70%	-22.13%
Volatility (1Y) Calculated over the trailing 1-year period	4.56%	32.80%	-28.24%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.45%	28.70%	-23.25%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.52%	28.70%	-22.18%

OVM vs. ZTAX - Expense Ratio Comparison

OVM has a 0.82% expense ratio, which is lower than ZTAX's 1.14% expense ratio.

Dividends

OVM vs. ZTAX - Dividend Comparison

OVM's dividend yield for the trailing twelve months is around 5.82%, more than ZTAX's 4.61% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
OVM Overlay Shares Municipal Bond ETF	5.82%	5.45%	4.91%	4.66%	4.21%	6.10%	3.97%	0.58%
ZTAX X-Square Municipal Income Tax Free ETF	4.61%	4.58%	4.55%	2.14%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both OVM and ZTAX in my portfolio?

OVM and ZTAX have a correlation of -0.09, 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 ZTAX?

ZTAX has higher volatility (6.77%) compared to OVM (1.73%). In terms of maximum drawdown, OVM dropped -15.58% vs ZTAX's -15.33%.

Which ETF is better, OVM or ZTAX?

On 3-year performance, ZTAX leads with 5.01% vs 4.39% for OVM. On fees, OVM is cheaper at 0.82% per year. On volatility, OVM has been the lower-risk option at 1.73%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, OVM or ZTAX?

Over the 3-year period, ZTAX has performed better with a 5.01% return vs 4.39%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, OVM or ZTAX?

OVM is cheaper with a 0.82% expense ratio, compared with 1.14% for ZTAX.

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

OVM has the higher dividend yield at 5.82%, compared with 4.61% for ZTAX.

What is the main difference between OVM and ZTAX?

They also come from different issuers: Liquid Strategies and X-Square. Their fees differ too: 0.82% for OVM and 1.14% for ZTAX.

Which has better risk-adjusted returns?

OVM currently has the higher Sharpe Ratio (1.72 vs 0.25), 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.