ZTAX vs. OVM

Last updated Apr 1, 2026

Compare and contrast key facts about X-Square Municipal Income Tax Free ETF (ZTAX) and Overlay Shares Municipal Bond ETF (OVM).

ZTAX and OVM are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. ZTAX is an actively managed fund by X-Square. It was launched on May 18, 2023. OVM is an actively managed fund by Liquid Strategies. It was launched on Sep 30, 2019.

Performance

ZTAX vs. OVM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in X-Square Municipal Income Tax Free ETF (ZTAX) and Overlay Shares Municipal Bond ETF (OVM). The values are adjusted to include any dividend payments, if applicable.

ZTAX vs. OVM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
ZTAX X-Square Municipal Income Tax Free ETF	0.90%	-1.02%	7.98%	9.14%
OVM Overlay Shares Municipal Bond ETF	1.20%	4.14%	3.42%	5.15%

Returns By Period

In the year-to-date period, ZTAX achieves a 0.90% return, which is significantly lower than OVM's 1.20% return.

ZTAX

• 1D: -2.16%
• 1M: 1.00%
• YTD: 0.90%
• 6M: 4.68%
• 1Y: 5.44%
• 3Y*: —
• 5Y*: —
• 10Y*: —

OVM

• 1D: 0.57%
• 1M: -1.86%
• YTD: 1.20%
• 6M: 3.29%
• 1Y: 7.50%
• 3Y*: 4.29%
• 5Y*: 1.47%
• 10Y*: —

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

ZTAX vs. OVM - Expense Ratio Comparison

ZTAX has a 1.14% expense ratio, which is higher than OVM's 0.82% expense ratio.

ZTAX

X-Square Municipal Income Tax Free ETF

OVM

Overlay Shares Municipal Bond ETF

Return for Risk

ZTAX vs. OVM — Risk / Return Rank

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

ZTAX

ZTAX Risk / Return Rank: 19
ZTAX Sharpe Ratio Rank: 17
ZTAX Sortino Ratio Rank: 18
ZTAX Omega Ratio Rank: 21
ZTAX Calmar Ratio Rank: 21
ZTAX Martin Ratio Rank: 20

OVM

OVM Risk / Return Rank: 75
OVM Sharpe Ratio Rank: 74
OVM Sortino Ratio Rank: 74
OVM Omega Ratio Rank: 75
OVM Calmar Ratio Rank: 77
OVM Martin Ratio Rank: 76

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.

ZTAX vs. OVM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for X-Square Municipal Income Tax Free ETF (ZTAX) and Overlay Shares Municipal Bond ETF (OVM). 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.

	ZTAX	OVM	Difference
Sharpe ratio Return per unit of total volatility	0.21	1.33	-1.12
Sortino ratio Return per unit of downside risk	0.49	1.86	-1.38
Omega ratio Gain probability vs. loss probability	1.08	1.29	-0.21
Calmar ratio Return relative to maximum drawdown	0.43	2.05	-1.62
Martin ratio Return relative to average drawdown	1.15	8.19	-7.03
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ZTAX vs. OVM - Sharpe Ratio Comparison

The current ZTAX Sharpe Ratio is 0.21, which is lower than the OVM Sharpe Ratio of 1.33. The chart below compares the historical Sharpe Ratios of ZTAX and OVM, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	ZTAX	OVM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.21	1.33	-1.12
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.27	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.22	0.37	-0.15

Correlation

The correlation between ZTAX and OVM is 0.02, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.

Dividends

ZTAX vs. OVM - Dividend Comparison

ZTAX's dividend yield for the trailing twelve months is around 4.52%, less than OVM's 6.76% yield.

	TTM	2025	2024	2023	2022	2021	2020	2019
ZTAX X-Square Municipal Income Tax Free ETF	4.52%	4.58%	4.55%	2.14%	0.00%	0.00%	0.00%	0.00%
OVM Overlay Shares Municipal Bond ETF	6.76%	5.45%	4.91%	4.66%	4.21%	6.10%	3.97%	0.58%

Drawdowns

ZTAX vs. OVM - Drawdown Comparison

The maximum ZTAX drawdown since its inception was -15.33%, roughly equal to the maximum OVM drawdown of -15.58%. Use the drawdown chart below to compare losses from any high point for ZTAX and OVM.

Drawdown Indicators

	ZTAX	OVM	Difference
Max Drawdown Largest peak-to-trough decline	-15.33%	-15.58%	+0.25%
Max Drawdown (1Y) Largest decline over 1 year	-10.47%	-3.89%	-6.58%
Max Drawdown (5Y) Largest decline over 5 years	—	-15.58%	—
Current Drawdown Current decline from peak	-5.92%	-1.86%	-4.06%
Average Drawdown Average peak-to-trough decline	-6.88%	-4.11%	-2.77%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.91%	0.97%	+2.94%

Volatility

ZTAX vs. OVM - Volatility Comparison

X-Square Municipal Income Tax Free ETF (ZTAX) has a higher volatility of 9.50% compared to Overlay Shares Municipal Bond ETF (OVM) at 1.98%. This indicates that ZTAX's price experiences larger fluctuations and is considered to be riskier than OVM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZTAX	OVM	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.50%	1.98%	+7.52%
Volatility (6M) Calculated over the trailing 6-month period	24.09%	3.35%	+20.74%
Volatility (1Y) Calculated over the trailing 1-year period	25.95%	5.68%	+20.27%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	27.27%	5.37%	+21.90%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.27%	6.60%	+20.67%