OVL vs SECT
Overlay Shares Large Cap Equity ETF vs Main Sector Rotation ETF
Which is better, OVL or SECT?
Nearly the same fund. SECT costs less.
SECT has a lower expense ratio. OVL led over 3Y and the full window, SECT over 1Y and 5Y. The two have moved almost in lockstep, correlation 0.96.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | OVL | SECT |
|---|---|---|
| Expense Ratio | 0.79% | 0.69%Best |
| AUM | $497M | $2.9B |
| Dividend Yield | 9.13% | 0.69% |
| Holdings | 16 | 19 |
| YTD Return | +6.54% | +10.58%Best |
| 1Y Return | +10.05% | +14.28%Best |
| 3Y Return (annualized) | +20.74%Best | +18.91% |
| 5Y Return (annualized) | +11.49% | +11.81%Best |
| Volatility (annualized) | 18.8% | 16.3%Best |
| Max Drawdown | -35.5%Best | -38.1% |
| $10,000 over 5 years | $17,226 | $17,474Best |
| Fund Family | Overlay Shares | Main Management ETF Advisors, LLC |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Sep 30, 2019 | Sep 5, 2017 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Oct 1, 2019 to Oct 14, 2026 (7 years).
OVL vs SECT growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 7 years both funds cover.
OVL vs SECT Performance
Overlay Shares Large Cap Equity ETF (OVL) is an ETF from Overlay Shares and Main Sector Rotation ETF (SECT) is an ETF from Main Management ETF Advisors, LLC. Over the past year OVL returned +10.05% while SECT returned +14.28%. Year to date, OVL is up 6.54% versus a gain of 10.58% for SECT.
Over three years, OVL compounded at +20.74% per year against +18.91% for SECT; over five years the annualized figures are +11.49% and +11.81% respectively. Across the full 7-year window we track, OVL has the edge at +15.72% annualized vs +14.67%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
OVL has been the more volatile fund, with annualized monthly volatility of 18.8% compared with 16.3% for SECT. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -35.5% for OVL and -38.1% for SECT. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.96. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
OVL charges 0.79% per year while SECT charges 0.69%. On a $10,000 position that is $79 vs $69 annually, a gap of $10 per year that compounds over a long holding period. On income, OVL currently yields 9.13% against 0.69% for SECT.
Holdings Overlap
We hold position weights for 2 holdings in OVL and 10 in SECT, totalling 100.2% and 100.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 2 positions we hold weights for in OVL and 10 in SECT, against full books of 16 and 19.
You are not choosing between two funds in isolation.
Whichever of OVL and SECT you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, OVL or SECT?
OVL has an expense ratio of 0.79% while SECT charges 0.69%. SECT is the cheaper option, by $10 a year on a $10,000 investment.
Which performed better, OVL or SECT?
Over the past year OVL returned +10.05% vs +14.28% for SECT, so SECT leads on 1-year performance. Over the longest common window we track (7 years), OVL annualized +15.72% vs +14.67% for SECT. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, OVL or SECT?
OVL has been the more volatile fund at 18.8% annualized versus 16.3% for SECT. Worst drawdown: OVL -35.5% vs SECT -38.1%.
Should I hold both OVL and SECT?
OVL and SECT have a monthly-return correlation of 0.96, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
Which pays a higher dividend, OVL or SECT?
OVL yields 9.13% while SECT yields 0.69%, so OVL currently pays the higher dividend yield.
Is SECT better than OVL?
SECT has a lower expense ratio. OVL led over 3Y and the full window, SECT over 1Y and 5Y. The two have moved almost in lockstep, correlation 0.96. Which one suits a particular account depends on what it is for. This is information, not a recommendation.