VBCE vs. OVT

Last updated Jun 5, 2026

VBCE (Vanguard Target Maturity 2031 Corporate Bond ETF) and OVT (Overlay Shares Short Term Bond ETF) are both Corporate Bonds funds. VBCE is passively managed, while OVT is actively managed. Their correlation of 0.81 suggests significant overlap in exposure. VBCE charges 0.08%/yr vs 0.80%/yr for OVT.

Performance

VBCE vs. OVT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Target Maturity 2031 Corporate Bond ETF (VBCE) and Overlay Shares Short Term Bond ETF (OVT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

VBCE

• 1D: 0.12%
• 1M: 0.16%
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

OVT

• 1D: 0.19%
• 1M: 0.65%
• YTD: 2.80%
• 6M: 3.36%
• 1Y: 8.90%
• 3Y*: 7.53%
• 5Y*: 3.05%
• 10Y*: —

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

VBCE vs. OVT - Yearly Performance Comparison

	2026 (YTD)
VBCE Vanguard Target Maturity 2031 Corporate Bond ETF	1.44%
OVT Overlay Shares Short Term Bond ETF	2.07%

Correlation

The correlation between VBCE and OVT is 0.81, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (All Time) Calculated using the full available price history since Mar 27, 2026	0.81

Return for Risk

VBCE vs. OVT — Risk / Return Rank

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

OVT

OVT Risk / Return Rank: 86
OVT Sharpe Ratio Rank: 81
OVT Sortino Ratio Rank: 86
OVT Omega Ratio Rank: 85
OVT Calmar Ratio Rank: 91
OVT Martin Ratio Rank: 89

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.

VBCE vs. OVT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Target Maturity 2031 Corporate Bond ETF (VBCE) and Overlay Shares Short Term Bond ETF (OVT). 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.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Sharpe Ratios by Period

	VBCE	OVT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	2.60	—
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.66	—
Sharpe Ratio (All Time) Calculated using the full available price history	2.21	0.69	+1.52

Drawdowns

VBCE vs. OVT - Drawdown Comparison

The maximum VBCE drawdown since its inception was -1.53%, smaller than the maximum OVT drawdown of -13.59%. Use the drawdown chart below to compare losses from any high point for VBCE and OVT.

Drawdown Indicators

	VBCE	OVT	Difference
Max Drawdown Largest peak-to-trough decline	-1.53%	-13.59%	+12.06%
Max Drawdown (1Y) Largest decline over 1 year	—	-1.55%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-3.55%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-13.59%	—
Current Drawdown Current decline from peak	-0.53%	-0.23%	-0.30%
Average Drawdown Average peak-to-trough decline	-0.45%	-3.39%	+2.94%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.45%	—

Volatility

Volatility by Period

	VBCE	OVT	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	0.84%	—
Volatility (6M) Calculated over the trailing 6-month period	—	2.53%	—
Volatility (1Y) Calculated over the trailing 1-year period	3.57%	3.45%	+0.12%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.57%	4.63%	-1.06%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.57%	4.54%	-0.97%

VBCE vs. OVT - Expense Ratio Comparison

VBCE has a 0.08% expense ratio, which is lower than OVT's 0.80% expense ratio.

Dividends

VBCE vs. OVT - Dividend Comparison

VBCE's dividend yield for the trailing twelve months is around 0.47%, less than OVT's 8.15% yield.

Position	TTM	2025	2024	2023	2022	2021
OVT Overlay Shares Short Term Bond ETF	8.15%	7.21%	6.15%	5.11%	4.12%	4.41%
VBCE Vanguard Target Maturity 2031 Corporate Bond ETF	0.47%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VBCE and OVT in my portfolio?

VBCE and OVT have a correlation of 0.81, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, VBCE or OVT?

On fees, VBCE is cheaper at 0.08% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VBCE or OVT?

VBCE is cheaper with a 0.08% expense ratio, compared with 0.80% for OVT.

Which ETF pays a higher dividend yield, VBCE or OVT?

OVT has the higher dividend yield at 8.15%, compared with 0.47% for VBCE.

What is the main difference between VBCE and OVT?

They also come from different issuers: Vanguard and Liquid Strategies. Their fees differ too: 0.08% for VBCE and 0.80% for OVT.