OVT vs. VCSH
OVT (Overlay Shares Short Term Bond ETF) and VCSH (Vanguard Short-Term Corporate Bond ETF) are both Corporate Bonds funds. OVT is actively managed, while VCSH is passively managed. Over the past 5 years, OVT returned 3.01%/yr vs 2.32%/yr for VCSH. A 0.67 correlation means they provide meaningful diversification when combined. OVT charges 0.80%/yr vs 0.04%/yr for VCSH.
Performance
OVT vs. VCSH - Performance Comparison
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Returns By Period
In the year-to-date period, OVT achieves a 2.61% return, which is significantly higher than VCSH's 0.64% return.
OVT
- 1D
- -0.16%
- 1M
- 0.55%
- YTD
- 2.61%
- 6M
- 3.07%
- 1Y
- 8.92%
- 3Y*
- 7.44%
- 5Y*
- 3.01%
- 10Y*
- —
VCSH
- 1D
- -0.08%
- 1M
- 0.20%
- YTD
- 0.64%
- 6M
- 0.95%
- 1Y
- 4.59%
- 3Y*
- 5.52%
- 5Y*
- 2.32%
- 10Y*
- 2.70%
OVT vs. VCSH - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|---|
OVT Overlay Shares Short Term Bond ETF | 2.61% | 7.61% | 7.44% | 7.73% | -9.68% | 2.07% |
VCSH Vanguard Short-Term Corporate Bond ETF | 0.64% | 6.77% | 4.91% | 6.20% | -5.62% | -0.46% |
Correlation
The correlation between OVT and VCSH is 0.67, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.67 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.61 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.67 |
Correlation (All Time) Calculated using the full available price history since Jan 19, 2021 | 0.67 |
The correlation between OVT and VCSH has been stable across timeframes, ranging from 0.61 to 0.67 - a consistent structural relationship.
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Return for Risk
OVT vs. VCSH — Risk / Return Rank
OVT
VCSH
OVT vs. VCSH - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Overlay Shares Short Term Bond ETF (OVT) and Vanguard Short-Term Corporate Bond ETF (VCSH). 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.
| OVT | VCSH | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.15 | ||
| Sortino ratioReturn per unit of downside risk | -0.02 | ||
| Omega ratioGain probability vs. loss probability | 1.51 | 1.48 | +0.03 |
| Calmar ratioReturn relative to maximum drawdown | 5.78 | 3.29 | +2.49 |
| Martin ratioReturn relative to average drawdown | 20.00 | 13.55 | +6.45 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| OVT | VCSH | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.60 | 2.45 | +0.15 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.65 | 0.81 | -0.16 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 0.81 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.69 | 1.02 | -0.33 |
Drawdowns
OVT vs. VCSH - Drawdown Comparison
The maximum OVT drawdown since its inception was -13.59%, which is greater than VCSH's maximum drawdown of -12.86%. Use the drawdown chart below to compare losses from any high point for OVT and VCSH.
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Drawdown Indicators
| OVT | VCSH | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -13.59% | -12.86% | -0.73% |
Max Drawdown (1Y)Largest decline over 1 year | -1.55% | -1.40% | -0.15% |
Max Drawdown (3Y)Largest decline over 3 years | -3.55% | -1.40% | -2.15% |
Max Drawdown (5Y)Largest decline over 5 years | -13.59% | -9.48% | -4.11% |
Max Drawdown (10Y)Largest decline over 10 years | — | -12.86% | — |
Current DrawdownCurrent decline from peak | -0.41% | -0.32% | -0.09% |
Average DrawdownAverage peak-to-trough decline | -3.39% | -0.97% | -2.42% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.45% | 0.34% | +0.11% |
Volatility
OVT vs. VCSH - Volatility Comparison
Overlay Shares Short Term Bond ETF (OVT) has a higher volatility of 0.83% compared to Vanguard Short-Term Corporate Bond ETF (VCSH) at 0.57%. This indicates that OVT's price experiences larger fluctuations and is considered to be riskier than VCSH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| OVT | VCSH | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.83% | 0.57% | +0.26% |
Volatility (6M)Calculated over the trailing 6-month period | 2.52% | 1.38% | +1.14% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.44% | 1.88% | +1.56% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 4.63% | 2.88% | +1.75% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.54% | 3.35% | +1.19% |
OVT vs. VCSH - Expense Ratio Comparison
OVT has a 0.80% expense ratio, which is higher than VCSH's 0.04% expense ratio.
Dividends
OVT vs. VCSH - Dividend Comparison
OVT's dividend yield for the trailing twelve months is around 8.17%, more than VCSH's 4.45% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
OVT Overlay Shares Short Term Bond ETF | 8.17% | 7.21% | 6.15% | 5.11% | 4.12% | 4.41% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
VCSH Vanguard Short-Term Corporate Bond ETF | 4.45% | 4.35% | 3.96% | 3.09% | 2.01% | 1.81% | 2.27% | 2.87% | 2.65% | 2.26% | 2.10% | 2.08% |
Frequently Asked Questions
OVT and VCSH have a correlation of 0.67, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
OVT has higher volatility (0.83%) compared to VCSH (0.57%). In terms of maximum drawdown, OVT dropped -13.59% vs VCSH's -12.86%.
On 5-year performance, OVT leads with 3.01% vs 2.32% for VCSH. On fees, VCSH is cheaper at 0.04% per year. On volatility, VCSH has been the lower-risk option at 0.57%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, OVT has performed better with a 3.01% return vs 2.32%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VCSH is cheaper with a 0.04% expense ratio, compared with 0.80% for OVT.
OVT has the higher dividend yield at 8.17%, compared with 4.45% for VCSH.
They also come from different issuers: Liquid Strategies and Vanguard. Their fees differ too: 0.80% for OVT and 0.04% for VCSH.
OVT currently has the higher Sharpe Ratio (2.60 vs 2.45), 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.
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