At a glance
OVM charges 0.81% a year, below the 0.86% average of the 7 funds most like it (the 3rd cheapest of 8). It has $44.8M in assets, the 8th largest of that group; it paid 5.2% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +1.9% with distributions reinvested, the weakest of those 8 funds; over three years it returned +6.8% a year. At its worst it fell 15.4% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 24 months after the low.
The short version
Overlay Shares Municipal Bond ETF (OVM) is an actively managed fund that holds municipal bonds, almost entirely through the iShares National Muni Bond ETF (MUB) as of August 31, 2026. On top of that, it writes short-term put option spreads on a large-cap US stock index to earn extra income. The overlay adds stock-market risk to a bond fund. The fund charges 0.81% a year and yielded 5.2% over the 12 months to October 27, 2026.
Price history
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OVM +1.9% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| OVM official prospectus, to Dec 31, 2024 | — | +3.57% | — | +1.72% | — | +1.97% |
| OVM price data to Oct 27, 2026 | +1.8% | +1.9% | +6.8% | +1.1% | — | +2.1% |
- Over the year to Oct 27, 2026, OVM returned +1.9%, 8th of 8 among similar funds.
- Its 5-year annualized return was +1.1%.
- Its worst full calendar year was 2022 (-11.3%); its best was 2023 (+7.3%).
- The deepest fall in its price history was 15.6% (Dec 28, 2021 to Sep 30, 2022), recovered by Oct 2, 2024.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +1.8% | — |
| 2025 | +4.1% | — |
| 2024 | +3.4% | +3.57% |
| 2023 | +7.3% | +7.13% |
| 2022 | -11.3% | -11.30% |
| 2021 | +4.2% | +3.84% |
| 2020 | — | +6.58% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Not in the price data, which starts Jun 2, 2020 |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 14% over that stretch · deepest drop along the way 15.4%, back to its old high 23.9 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.8140 | |
| 2025 | $1.1700 | +10.4% |
| 2024 | $1.0600 | +2.9% |
| 2023 | $1.0300 | +13.2% |
| 2022 | $0.9100 | -40.9% |
| 2021 | $1.5400 |
What's inside
As of Aug 31, 2026, the fund held 1 securities; the ten largest made up 100.01% of assets. It also reported 22.99% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.
| Fund held | Weight | |
|---|---|---|
| iShares National Muni Bond ETF | 100.01% |
By country
United States 100.01%By asset type
Stocks 100.01%What changed recently
- Over the three months to Aug 31, 2026, investors added a net $8.0M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.27%, -1.75%, -0.06%.
How it works
OVM is actively managed and does not track an index. In normal conditions at least 80% of its net assets go into municipal bonds, either directly or through other ETFs. Municipal bonds are debt issued by states, cities and public agencies. The prospectus allows both investment-grade munis and below-investment-grade ones, which are riskier and pay more. As of August 31, 2026, the bond side was a single fund, the iShares National Muni Bond ETF (MUB), at about 100% of assets. Portfolio turnover was 7%.
The second piece is the overlay. A put option pays its owner if an index falls below a set level, called the strike price. OVM writes puts on a large-cap stock index, which means it takes the other side of the trade and collects a fee, called a premium, for carrying that risk. The August 2026 holdings show S&P 500 index options (SPXW). These options typically expire within one to two weeks. The fund also purchases an equal number of puts with a lower strike. Each pair, called a put spread, has a limited loss, but the fund is not fully protected. The puts it writes can cover up to 100% of net assets.
The adviser, Liquid Strategies, decides the gap between strikes using quantitative measures of stock-market risk, such as volatility, plus its own judgment. In falling markets it may write fewer puts. The overlay aims to earn money when stocks rise or stay flat. In a sharp drop, losses can far exceed the premiums collected.
What it really costs
- OVM charges 0.81% a year, versus an average of 0.86% for the similar funds below (3rd of 8, cheapest first).
- Of that, 0.75% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $83 in the first year and $1,002 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| OVM | $83 | $259 | $450 | $1,002 |
Structure and tax notes
- Invests in other funds rather than directly in stocks or bonds, so its holdings are those funds.
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
OVM pairs a municipal bond fund with option premiums, and it yielded 5.2% over the 12 months to October 27, 2026, paid quarterly, though the options add stock-market risk.
OVM launched in 2019, and its price history starts after the 2020 COVID crash, so the record covers neither that crash nor 2008. In the 2022 bear market it fell about 15% between January and September 2022. It took roughly two years, until late September 2024, to get back to its old high. Its worst calendar year was 2022, at -11.3%. Anyone withdrawing cash in a year like that would be drawing from a smaller balance. The yield was 5.2% over the 12 months to October 27, 2026, paid quarterly. Because of the put overlay, a stock crash can hurt this bond fund too. In the SEC's standard example, costs on a $10,000 investment come to $83 after one year and $1,002 after ten. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want municipal bond exposure plus extra income from option premiums. The yield was 5.2% over the 12 months to October 27, 2026.
- Holders who accept that a sharp stock-market drop can hurt this bond fund, because its put spreads are tied to a large-cap stock index.
- Investors who are happy with quarterly payouts and a simple bond core: one holding, MUB, as of August 31, 2026, with 7% portfolio turnover.
Look elsewhere if
- Cost-focused investors: the fund charges 0.81% a year, and underneath it is mainly the iShares National Muni Bond ETF plus an options overlay.
- Anyone who wants bonds that steady a portfolio during stock sell-offs. In volatile markets, losses on the overlay can exceed the premiums collected.
- Investors who prefer large, heavily traded funds. Net assets were about $44.8 million as of August 31, 2026, so trading costs and spreads may matter.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| OVM this fund | 0.81% | $44.8M | +1.9% | +6.8% |
| BUFR FT Vest Laddered Buffer ETF | 0.95% | $10.49B | +11.6% | +16.8% |
| BUFD FT Vest Laddered Deep Buffer ETF | 0.95% | $2.04B | +9.5% | +13.9% |
| PJAN Innovator U.S. Equity Power Buffer ETF - Ja… | 0.79% | $1.44B | +10.5% | +14.8% |
| PDEC Innovator U.S. Equity Power Buffer ETF - De… | 0.79% | $984.1M | +11.6% | +14.9% |
| FDEC FT Vest US Equity Buffer ETF - December | 0.85% | $1.31B | +12.9% | +18.5% |
| FJAN FT Vest US Equity Buffer ETF - January | 0.85% | $1.47B | +12.3% | +17.4% |
| FFEB FT Vest U.S. Equity Buffer Fund - February | 0.85% | $1.42B | +12.9% | +18.6% |
Questions investors ask
Does OVM pay monthly dividends?
No. OVM pays distributions quarterly, not monthly. Over the 12 months to October 27, 2026, it paid about $1.094 per share, a trailing yield of 5.2%. The fund aims for total return. Its income comes from its municipal bond holding, the iShares National Muni Bond ETF, plus premiums from writing put options on a large-cap stock index. Payouts can vary from quarter to quarter, so the past yield doesn't guarantee future payments.
Is OVM income tax-free?
Not necessarily all of it. Interest from municipal bonds is generally exempt from federal income tax, and OVM holds munis through the iShares National Muni Bond ETF. But part of the fund's return is meant to come from S&P 500 index options, and option gains are not municipal bond interest, so they may be taxed differently. The prospectus also flags heavy exposure to California and New York munis. A tax adviser and the fund's year-end tax documents can show how its payouts are treated.
What's the difference between OVM and MUB?
OVM owns MUB and adds an options strategy. As of August 31, 2026, the iShares National Muni Bond ETF made up about 100% of OVM's assets. On top of that, OVM writes short-term put spreads on the S&P 500 to collect premiums. This gives OVM extra income potential, but it also means a stock-market drop can cause losses that a plain muni bond fund wouldn't face. OVM's expense ratio is 0.81%, and the fund adds a layer of active management.
How much did OVM lose in 2022?
OVM lost 11.3% in 2022, its worst calendar year, according to the prospectus. Its worst quarter was the first quarter of 2022, at -6.33%. From its peak on December 28, 2021, to its low on September 30, 2022, it fell 15.6%. It took about 24 months, until October 2, 2024, to recover. For comparison, its five-year average annual return was 1.72% as of December 31, 2024.
Is OVM a buffer ETF like BUFR?
No. OVM is sometimes grouped with buffer funds such as FT Vest Laddered Buffer ETF (BUFR), but it follows a different strategy. Buffer funds limit losses on stock exposure over a set period. OVM holds municipal bonds and writes put spreads, which add stock risk rather than limit it. OVM costs 0.81% against BUFR's 0.95%. As of October 27, 2026, OVM's one-year return was 1.9%, compared with 11.6% for the stock-based BUFR.