VBCI vs. OVT

Last updated Jul 12, 2026

VBCI (Vanguard Target Maturity 2035 Corporate Bond ETF) and OVT (Overlay Shares Short Term Bond ETF) are both Corporate Bonds funds. VBCI is passively managed, while OVT is actively managed. A 0.76 correlation means they provide meaningful diversification when combined. VBCI charges 0.08%/yr vs 0.80%/yr for OVT.

Performance

VBCI vs. OVT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Target Maturity 2035 Corporate Bond ETF (VBCI) and Overlay Shares Short Term Bond ETF (OVT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

VBCI

• 1D: -0.18%
• 1M: -0.56%
• 6M: —
• YTD: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

OVT

• 1D: 0.02%
• 1M: 0.41%
• 6M: 2.26%
• YTD: 2.56%
• 1Y: 7.36%
• 3Y*: 7.37%
• 5Y*: 2.90%
• 10Y*: —

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

VBCI vs. OVT - Yearly Performance Comparison

	2026 (YTD)
VBCI Vanguard Target Maturity 2035 Corporate Bond ETF	1.16%
OVT Overlay Shares Short Term Bond ETF	1.36%

Correlation

The correlation between VBCI and OVT is 0.76, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (All Time) Calculated using the full available price history since Mar 26, 2026	0.76

Return for Risk

VBCI vs. OVT — Risk / Return Rank

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

VBCI

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

OVT

OVT Risk / Return Rank: 82
OVT Sharpe Ratio Rank: 76
OVT Sortino Ratio Rank: 76
OVT Omega Ratio Rank: 80
OVT Calmar Ratio Rank: 91
OVT Martin Ratio Rank: 85

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.

VBCI vs. OVT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Target Maturity 2035 Corporate Bond ETF (VBCI) 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.

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.

	VBCI	OVT	Difference
Sharpe ratio: Return per unit of total volatility	—	1.93	—
Sortino ratio: Return per unit of downside risk	—	2.71	—
Omega ratio: Gain probability vs. loss probability	—	1.37	—
Calmar ratio: Return relative to maximum drawdown	—	4.54	—
Martin ratio: Return relative to average drawdown	—	13.79	—

Drawdowns

VBCI vs. OVT - Drawdown Comparison

The maximum VBCI drawdown since its inception was -2.21%, smaller than the maximum OVT drawdown of -13.59%. Use the drawdown chart below to compare losses from any high point for VBCI and OVT.

Drawdown Indicators

	VBCI	OVT	Difference
Max Drawdown Largest peak-to-trough decline	-2.21%	-13.59%	+11.38%
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	-1.23%	-0.46%	-0.77%
Average Drawdown Average peak-to-trough decline	-0.60%	-3.34%	+2.74%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.51%	—

Volatility

Volatility by Period

	VBCI	OVT	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	1.30%	—
Volatility (6M) Calculated over the trailing 6-month period	—	2.83%	—
Volatility (1Y) Calculated over the trailing 1-year period	5.42%	3.66%	+1.76%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.42%	4.68%	+0.74%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.42%	4.55%	+0.87%

VBCI vs. OVT - Expense Ratio Comparison

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

Dividends

VBCI vs. OVT - Dividend Comparison

VBCI's dividend yield for the trailing twelve months is around 1.28%, less than OVT's 7.07% yield.

Position	TTM	2025	2024	2023	2022	2021
OVT Overlay Shares Short Term Bond ETF	7.07%	7.21%	6.15%	5.11%	4.12%	4.41%
VBCI Vanguard Target Maturity 2035 Corporate Bond ETF	1.28%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VBCI and OVT in my portfolio?

VBCI and OVT have a correlation of 0.76, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, VBCI or OVT?

On fees, VBCI 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, VBCI or OVT?

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

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

OVT has the higher dividend yield at 7.07%, compared with 1.28% for VBCI.

What is the main difference between VBCI and OVT?

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