USMC vs. OVL

Last updated Aug 2, 2026

USMC (Principal U.S. Mega-Cap ETF) and OVL (Overlay Shares Large Cap Equity ETF) are both exchange-traded funds - USMC is a Large Cap Growth Equities fund tracking the Nasdaq US Mega Cap Select Leaders Index, while OVL is a Derivative Income fund actively managed by Liquid Strategies. USMC is passively managed, while OVL is actively managed. Over the past 5 years, USMC returned 14.11%/yr vs 12.90%/yr for OVL. Their correlation of 0.93 means they have usually moved in the same direction. USMC charges 0.12%/yr vs 0.79%/yr for OVL.

Performance

USMC vs. OVL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Principal U.S. Mega-Cap ETF (USMC) and Overlay Shares Large Cap Equity ETF (OVL). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, USMC achieves a 8.72% return, which is significantly lower than OVL's 11.72% return.

USMC

• 1D: 0.44%
• 1M: 0.13%
• 6M: 9.88%
• YTD: 8.72%
• 1Y: 20.36%
• 3Y*: 19.26%
• 5Y*: 14.11%
• 10Y*: —
• ALL TIME*: 14.93%

OVL

• 1D: 0.87%
• 1M: -0.03%
• 6M: 9.54%
• YTD: 11.72%
• 1Y: 24.78%
• 3Y*: 20.77%
• 5Y*: 12.90%
• 10Y*: —
• ALL TIME*: 16.88%

*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)
OVL Overlay Shares Large Cap Equity ETF	$8.43M	$7.51M	$6.20M
USMC Principal U.S. Mega-Cap ETF	$7.10M	$6.59M	$6.39M

USMC vs. OVL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
USMC Principal U.S. Mega-Cap ETF	8.72%	14.99%	29.82%	31.57%	-17.17%	26.30%	16.05%	7.67%
OVL Overlay Shares Large Cap Equity ETF	11.72%	17.81%	27.91%	28.01%	-22.18%	32.40%	20.17%	8.73%

Correlation

The correlation between USMC and OVL is 0.91, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.91
Correlation (3Y) Balances recent behavior with more history.	0.92
Correlation (5Y) Shows whether the relationship held over a longer period.	0.94
Correlation (All Time) Calculated using the full available price history since Oct 1, 2019	0.93

The correlation between USMC and OVL has been stable across timeframes, ranging from 0.91 to 0.94 - a consistent structural relationship.

USMC vs. OVL - Sectors Allocation Comparison

Sectors	USMC	OVL
Technology	32.1%	39.1%
Financial Services	19.5%	10.9%
Communication Services	12.3%	10.7%
Healthcare	9.1%	8.3%
Consumer Defensive	8.5%	4.5%
Consumer Cyclical	8.0%	9.9%
Industrials	6.6%	7.8%
Energy	4.0%	3.1%
Basic Materials	-	1.7%
Real Estate	-	1.8%
Utilities	-	2.1%

Return for Risk

USMC vs. OVL — Risk / Return Rank

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

USMC

USMC Risk / Return Rank: 59
USMC Sharpe Ratio Rank: 64
USMC Sortino Ratio Rank: 64
USMC Omega Ratio Rank: 61
USMC Calmar Ratio Rank: 51
USMC Martin Ratio Rank: 57

OVL

OVL Risk / Return Rank: 68
OVL Sharpe Ratio Rank: 65
OVL Sortino Ratio Rank: 61
OVL Omega Ratio Rank: 62
OVL Calmar Ratio Rank: 74
OVL Martin Ratio Rank: 79

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.

USMC vs. OVL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Principal U.S. Mega-Cap ETF (USMC) and Overlay Shares Large Cap Equity ETF (OVL). 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.

	USMC	OVL	Difference
Sharpe ratio: Return per unit of total volatility	1.49	1.48	0.00
Sortino ratio: Return per unit of downside risk	2.12	2.04	+0.08
Omega ratio: Gain probability vs. loss probability	1.26	1.26	0.00
Calmar ratio: Return relative to maximum drawdown	1.82	2.57	-0.75
Martin ratio: Return relative to average drawdown	6.78	9.98	-3.20

USMC vs. OVL - Sharpe Ratio Comparison

The current USMC Sharpe Ratio is 1.49, which is comparable to the OVL Sharpe Ratio of 1.48. The chart below compares the historical Sharpe Ratios of USMC and OVL, 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

USMC vs. OVL - Drawdown Comparison

The maximum USMC drawdown since its inception was -29.97%, smaller than the maximum OVL drawdown of -35.49%. Use the drawdown chart below to compare losses from any high point for USMC and OVL.

Drawdown Indicators

	USMC	OVL	Difference
Max Drawdown Largest peak-to-trough decline	-29.97%	-35.49%	+5.52%
Max Drawdown (1Y) Largest decline over 1 year	-10.30%	-8.73%	-1.57%
Max Drawdown (3Y) Largest decline over 3 years	-19.12%	-21.73%	+2.61%
Max Drawdown (5Y) Largest decline over 5 years	-24.09%	-29.23%	+5.14%
Current Drawdown Current decline from peak	-1.03%	-2.24%	+1.21%
Average Drawdown Average peak-to-trough decline	-4.35%	-6.62%	+2.27%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.75%	2.25%	+0.50%

Volatility

USMC vs. OVL - Volatility Comparison

The current volatility for Principal U.S. Mega-Cap ETF (USMC) is 3.47%, while Overlay Shares Large Cap Equity ETF (OVL) has a volatility of 4.27%. This indicates that USMC experiences smaller price fluctuations and is considered to be less risky than OVL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	USMC	OVL	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.47%	4.27%	-0.80%
Volatility (6M) Calculated over the trailing 6-month period	9.64%	11.44%	-1.80%
Volatility (1Y) Calculated over the trailing 1-year period	12.60%	15.13%	-2.53%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.46%	19.91%	-3.45%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.18%	22.44%	-4.26%

USMC vs. OVL - Expense Ratio Comparison

USMC has a 0.12% expense ratio, which is lower than OVL's 0.79% expense ratio.

Dividends

USMC vs. OVL - Dividend Comparison

USMC's dividend yield for the trailing twelve months is around 0.76%, less than OVL's 7.41% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
OVL Overlay Shares Large Cap Equity ETF	7.41%	2.99%	3.10%	3.33%	3.85%	3.63%	2.43%	0.50%	0.00%	0.00%
USMC Principal U.S. Mega-Cap ETF	0.76%	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 USMC and OVL in my portfolio?

With a correlation of 0.91, USMC and OVL 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, USMC or OVL?

OVL has higher volatility (4.27%) compared to USMC (3.47%). In terms of maximum drawdown, USMC dropped -29.97% vs OVL's -35.49%.

Which ETF is better, USMC or OVL?

On 5-year performance, USMC leads with 14.11% vs 12.90% for OVL. On fees, USMC is cheaper at 0.12% per year. On volatility, USMC has been the lower-risk option at 3.47%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, USMC or OVL?

Over the 5-year period, USMC has performed better with a 14.11% return vs 12.90%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, USMC or OVL?

USMC is cheaper with a 0.12% expense ratio, compared with 0.79% for OVL.

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

OVL has the higher dividend yield at 7.41%, compared with 0.76% for USMC.

What is the main difference between USMC and OVL?

USMC is categorized as Large Cap Growth Equities, while OVL is Derivative Income. They also come from different issuers: Principal and Liquid Strategies. Their fees differ too: 0.12% for USMC and 0.79% for OVL.

Which has better risk-adjusted returns?

USMC currently has the higher Sharpe Ratio (1.49 vs 1.48), 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.