OVL vs ZHDG
Overlay Shares Large Cap Equity ETF vs ZEGA Buy and Hedge ETF
Which is better, OVL or ZHDG?
Nearly the same fund. OVL costs less.
OVL has a lower expense ratio. OVL led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.97.
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 | ZHDG |
|---|---|---|
| Expense Ratio | 0.79%Best | 0.95% |
| AUM | $497M | $31M |
| Dividend Yield | 9.13% | 2.42% |
| Holdings | 16 | 28 |
| YTD Return | +6.54% | +6.90%Best |
| 1Y Return | +10.05%Best | +8.99% |
| 3Y Return (annualized) | +20.74%Best | +14.14% |
| 5Y Return (annualized) | +11.49%Best | +6.03% |
| Volatility (annualized) | 17.7% | 12.3%Best |
| Max Drawdown | -29.2% | -23.3%Best |
| $10,000 over 5 years | $17,226Best | $13,401 |
| Fund Family | Overlay Shares | Zega ETFs |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Sep 30, 2019 | Jul 6, 2021 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jul 7, 2021 to Oct 14, 2026 (5.3 years).
OVL vs ZHDG 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 5.3 years both funds cover.
OVL vs ZHDG Performance
Overlay Shares Large Cap Equity ETF (OVL) is an ETF from Overlay Shares and ZEGA Buy and Hedge ETF (ZHDG) is an ETF from Zega ETFs. Over the past year OVL returned +10.05% while ZHDG returned +8.99%. Year to date, OVL is up 6.54% versus a gain of 6.90% for ZHDG.
Over three years, OVL compounded at +20.74% per year against +14.14% for ZHDG; over five years the annualized figures are +11.49% and +6.03% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
OVL has been the more volatile fund, with annualized monthly volatility of 17.7% compared with 12.3% for ZHDG. 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 -29.2% for OVL and -23.3% for ZHDG. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.97. 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 ZHDG charges 0.95%. On a $10,000 position that is $79 vs $95 annually, a gap of $16 per year that compounds over a long holding period. On income, OVL currently yields 9.13% against 2.42% for ZHDG.
Holdings Overlap
We hold position weights for 2 holdings in OVL and 2 in ZHDG, totalling 100.2% and 8.2% of the two funds. Neither is a share of a fund we can divide by, so no overlap percentage is shown here. Within what we can see, 1 positions appear in both.
1 positions in common, counted across the 2 positions we hold weights for in OVL and 2 in ZHDG, against full books of 16 and 28.
Top Shared Holdings
| Stock | Weight in OVL | Weight in ZHDG | Difference |
|---|---|---|---|
| FGXXXFirst American Government Obligations Fund | 0.35% | 3.19% | 2.84% |
You are not choosing between two funds in isolation.
Whichever of OVL and ZHDG 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 ZHDG?
OVL has an expense ratio of 0.79% while ZHDG charges 0.95%. OVL is the cheaper option, by $16 a year on a $10,000 investment.
Which performed better, OVL or ZHDG?
Over the past year OVL returned +10.05% vs +8.99% for ZHDG, so OVL leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, OVL or ZHDG?
OVL has been the more volatile fund at 17.7% annualized versus 12.3% for ZHDG. Worst drawdown: OVL -29.2% vs ZHDG -23.3%.
Should I hold both OVL and ZHDG?
OVL and ZHDG have a monthly-return correlation of 0.97, 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 ZHDG?
OVL yields 9.13% while ZHDG yields 2.42%, so OVL currently pays the higher dividend yield.
Is ZHDG better than OVL?
OVL has a lower expense ratio. OVL led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.97. Which one suits a particular account depends on what it is for. This is information, not a recommendation.