SMLF vs. OVS

Last updated Jun 4, 2026

SMLF (iShares MSCI USA Small-Cap Multifactor ETF) and OVS (Overlay Shares Small Cap Equity ETF) are both Small Cap Blend Equities funds. SMLF is passively managed, while OVS is actively managed. Over the past 5 years, SMLF returned 10.89%/yr vs 6.01%/yr for OVS. Their correlation of 0.95 suggests significant overlap in exposure. SMLF charges 0.30%/yr vs 0.83%/yr for OVS.

Performance

SMLF vs. OVS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI USA Small-Cap Multifactor ETF (SMLF) and Overlay Shares Small Cap Equity ETF (OVS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SMLF achieves a 14.46% return, which is significantly lower than OVS's 17.65% return.

SMLF

• 1D: -0.72%
• 1M: 4.07%
• YTD: 14.46%
• 6M: 14.20%
• 1Y: 30.98%
• 3Y*: 19.85%
• 5Y*: 10.89%
• 10Y*: 12.36%

OVS

• 1D: -0.98%
• 1M: 2.07%
• YTD: 17.65%
• 6M: 16.54%
• 1Y: 36.35%
• 3Y*: 16.07%
• 5Y*: 6.01%
• 10Y*: —

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

SMLF vs. OVS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
SMLF iShares MSCI USA Small-Cap Multifactor ETF	14.46%	12.30%	16.33%	19.99%	-12.19%	26.53%	8.38%	9.95%
OVS Overlay Shares Small Cap Equity ETF	17.65%	6.15%	11.07%	17.20%	-19.99%	30.15%	12.16%	11.51%

Correlation

The correlation between SMLF and OVS is 0.94, 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	0.94
Correlation (3Y) Calculated over the trailing 3-year period	0.95
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (All Time) Calculated using the full available price history since Oct 2, 2019	0.95

The correlation between SMLF and OVS has been stable across timeframes, ranging from 0.94 to 0.96 - a consistent structural relationship.

SMLF vs. OVS - Sectors Allocation Comparison

Sectors	SMLF	OVS
Industrials	19.8%	15.3%
Technology	16.6%	15.3%
Financial Services	15.0%	17.0%
Healthcare	12.7%	11.0%
Consumer Cyclical	11.8%	13.4%
Real Estate	5.7%	7.7%
Energy	4.8%	6.0%
Basic Materials	4.6%	5.2%
Consumer Defensive	3.7%	3.6%
Communication Services	3.2%	3.6%
Utilities	2.2%	2.0%

Return for Risk

SMLF vs. OVS — Risk / Return Rank

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

SMLF

SMLF Risk / Return Rank: 58
SMLF Sharpe Ratio Rank: 52
SMLF Sortino Ratio Rank: 52
SMLF Omega Ratio Rank: 48
SMLF Calmar Ratio Rank: 71
SMLF Martin Ratio Rank: 66

OVS

OVS Risk / Return Rank: 64
OVS Sharpe Ratio Rank: 56
OVS Sortino Ratio Rank: 57
OVS Omega Ratio Rank: 52
OVS Calmar Ratio Rank: 81
OVS Martin Ratio Rank: 74

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.

SMLF vs. OVS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI USA Small-Cap Multifactor ETF (SMLF) and Overlay Shares Small Cap Equity ETF (OVS). 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.

	SMLF	OVS	Difference
Sharpe ratio Return per unit of total volatility	1.81	1.90	-0.09
Sortino ratio Return per unit of downside risk	2.56	2.71	-0.16
Omega ratio Gain probability vs. loss probability	1.31	1.33	-0.02
Calmar ratio Return relative to maximum drawdown	3.57	4.29	-0.72
Martin ratio Return relative to average drawdown	12.27	13.85	-1.59
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SMLF vs. OVS - Sharpe Ratio Comparison

The current SMLF Sharpe Ratio is 1.81, which is comparable to the OVS Sharpe Ratio of 1.90. The chart below compares the historical Sharpe Ratios of SMLF and OVS, 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

	SMLF	OVS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.81	1.90	-0.09
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.52	0.26	+0.26
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.57	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.54	0.43	+0.10

Drawdowns

SMLF vs. OVS - Drawdown Comparison

The maximum SMLF drawdown since its inception was -41.89%, smaller than the maximum OVS drawdown of -45.09%. Use the drawdown chart below to compare losses from any high point for SMLF and OVS.

Drawdown Indicators

	SMLF	OVS	Difference
Max Drawdown Largest peak-to-trough decline	-41.89%	-45.09%	+3.20%
Max Drawdown (1Y) Largest decline over 1 year	-8.71%	-8.51%	-0.20%
Max Drawdown (3Y) Largest decline over 3 years	-26.28%	-30.49%	+4.21%
Max Drawdown (5Y) Largest decline over 5 years	-26.28%	-30.49%	+4.21%
Max Drawdown (10Y) Largest decline over 10 years	-41.89%	—	—
Current Drawdown Current decline from peak	-0.72%	-0.98%	+0.26%
Average Drawdown Average peak-to-trough decline	-6.60%	-11.35%	+4.75%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.53%	2.63%	-0.10%

Volatility

SMLF vs. OVS - Volatility Comparison

iShares MSCI USA Small-Cap Multifactor ETF (SMLF) and Overlay Shares Small Cap Equity ETF (OVS) have volatilities of 4.80% and 4.58%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SMLF	OVS	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.80%	4.58%	+0.22%
Volatility (6M) Calculated over the trailing 6-month period	12.31%	13.00%	-0.69%
Volatility (1Y) Calculated over the trailing 1-year period	17.21%	19.27%	-2.06%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.09%	23.23%	-2.14%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.78%	27.47%	-5.69%

SMLF vs. OVS - Expense Ratio Comparison

SMLF has a 0.30% expense ratio, which is lower than OVS's 0.83% expense ratio.

Dividends

SMLF vs. OVS - Dividend Comparison

SMLF's dividend yield for the trailing twelve months is around 1.03%, less than OVS's 6.83% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
OVS Overlay Shares Small Cap Equity ETF	6.83%	3.69%	4.08%	3.19%	3.43%	4.05%	1.74%	0.54%	0.00%	0.00%	0.00%	0.00%
SMLF iShares MSCI USA Small-Cap Multifactor ETF	1.03%	1.14%	1.33%	1.13%	1.23%	1.07%	1.33%	1.39%	1.17%	0.93%	0.78%	0.79%

Frequently Asked Questions

Can I hold both SMLF and OVS in my portfolio?

With a correlation of 0.94, SMLF and OVS 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, SMLF or OVS?

SMLF has higher volatility (4.80%) compared to OVS (4.58%). In terms of maximum drawdown, SMLF dropped -41.89% vs OVS's -45.09%.

Which ETF is better, SMLF or OVS?

On 5-year performance, SMLF leads with 10.89% vs 6.01% for OVS. On fees, SMLF is cheaper at 0.30% per year. On volatility, OVS has been the lower-risk option at 4.58%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SMLF or OVS?

Over the 5-year period, SMLF has performed better with a 10.89% return vs 6.01%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SMLF or OVS?

SMLF is cheaper with a 0.30% expense ratio, compared with 0.83% for OVS.

Which ETF pays a higher dividend yield, SMLF or OVS?

OVS has the higher dividend yield at 6.83%, compared with 1.03% for SMLF.

What is the main difference between SMLF and OVS?

They also come from different issuers: iShares and Liquid Strategies. Their fees differ too: 0.30% for SMLF and 0.83% for OVS.

Which has better risk-adjusted returns?

OVS currently has the higher Sharpe Ratio (1.90 vs 1.81), 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.