At a glance
OVT charges 0.79% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $61.1M in assets, the 8th largest of that group; it paid 7.19% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +3.3% with distributions reinvested, the weakest of those 8 funds; over three years it returned +8.2% a year. At its worst it fell 12.5% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 18 months after the low.
The short version
Overlay Shares Short Term Bond ETF (OVT) is an actively managed fund that holds the Vanguard Short-Term Corporate Bond ETF (VCSH). On top of that, it sells short-term put spreads on a large-cap stock index to earn extra income. This options layer helped produce a trailing 12-month yield of 7.19% as of October 27, 2026. It also ties the fund's results to the stock market, which a plain bond fund avoids. The fund costs 0.79% a year.
Price history
The interactive chart needs JavaScript.
OVT +3.3% 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 | |
|---|---|---|---|---|---|---|
| OVT official prospectus, to Dec 31, 2024 | — | +7.45% | — | — | — | +1.65% |
| OVT price data to Oct 27, 2026 | +2.2% | +3.3% | +8.2% | +2.9% | — | +2.8% |
- Over the year to Oct 27, 2026, OVT returned +3.3%, 8th of 8 among similar funds.
- Its 5-year annualized return was +2.9%.
- Its worst full calendar year was 2022 (-9.8%); its best was 2023 (+7.7%).
- The deepest fall in its price history was 13.6% (Sep 3, 2021 to Oct 14, 2022), recovered by Jun 13, 2024.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +2.2% | — |
| 2025 | +7.6% | — |
| 2024 | +7.4% | +7.45% |
| 2023 | +7.7% | +7.70% |
| 2022 | -9.8% | -9.66% |
| 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 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 12.4% over that stretch · deepest drop along the way 12.5%, back to its old high 17.9 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.0500 | |
| 2025 | $1.5900 | +17.8% |
| 2024 | $1.3500 | +21.6% |
| 2023 | $1.1100 | +29.1% |
| 2022 | $0.8600 |
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 18.52% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.
| Fund held | Weight | |
|---|---|---|
| Vanguard Short-Term Corporate 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 $1.3M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -0.34%, -0.39%, +0.39%.
How it works
OVT has two parts. The first is a bond core. At least 80% of net assets go into bonds, either directly or through other ETFs. These hold short-term, investment-grade, US dollar, fixed-rate taxable bonds with an average maturity of no more than three years. As of August 31, 2026, that core was a single fund: the Vanguard Short-Term Corporate Bond ETF (VCSH), at about 100% of assets. OVT is therefore a fund of funds. Its portfolio turnover was 7%.
The second part is the "Overlay Strategy." The fund sells put options on a large-cap stock index. A put pays its buyer if the index falls below a set price, called the strike. As of August 31, 2026, these were SPXW contracts, which are S&P 500 index options. The value of the puts sold can reach 100% of net assets. For each put it sells, the fund buys a matching put with a lower strike. Most expire within one to two weeks and settle in cash. If the index holds steady or rises, the fund keeps the net premium. If the index falls sharply, the fund loses money. The lower put limits that loss to the gap between the two strikes, but the loss can still exceed the premiums collected.
The adviser sets the gap between strikes using a quantitative model of stock-market risk and volatility. In falling markets it may sell fewer puts. The fund's upside is limited to the net premiums plus the return of its bonds.
What it really costs
- OVT charges 0.79% a year, versus an average of 0.86% for the similar funds below (1st 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 $81 in the first year and $978 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| OVT | $81 | $252 | $439 | $978 |
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
OVT's quarterly payouts come from short-term corporate bond interest plus options premiums, but those premiums carry stock-market risk.
OVT paid about $1.54 per share over the 12 months to October 27, 2026, a trailing yield of 7.19%, paid quarterly. Part of that comes from option premiums, so payouts can shrink when markets turn rough. The fund launched in January 2021, so it has no record from the 2008 or 2020 crashes. In the 2022 bear market it fell 12.5% between January 4 and September 30, 2022, and took about 18 months to recover. Its deepest drop was 13.6%, from September 2021 to October 2022. Recovery came in June 2024, about 20 months later. Its worst calendar year was 2022, at −9.66%. Anyone who needed to sell shares during that stretch would have locked in losses. In the SEC's standard example, costs on $10,000 come to $81 in the first year and $978 over 10 years. Past results don't predict the future. A retirement plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want short-term corporate bond exposure through VCSH, plus extra quarterly income from selling put spreads on S&P 500 index options.
- People who understand that the 7.19% trailing yield (as of October 27, 2026) comes partly from option premiums, not only from bond interest.
- Holders who can sit through drawdowns deeper than a short-term bond label suggests, such as the 13.6% drop that took about 20 months to recover.
Look elsewhere if
- Anyone wanting a plain, steady short-term bond fund. A sharp stock sell-off can cost OVT more than the premiums it collects.
- Cost-focused investors. At 0.79% a year, the SEC example shows $978 in costs over 10 years on $10,000.
- Those who prefer large, heavily traded funds. Net assets were about $61 million as of August 31, 2026, and shares may trade away from net asset value.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| OVT this fund | 0.79% | $61.1M | +3.3% | +8.2% |
| 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
Is OVT good for retirement income?
It can provide income, but with more risk than a plain short-term bond fund. OVT's trailing 12-month yield was 7.19% as of October 27, 2026, paid quarterly. Part of that comes from selling put options on a stock index, so income and price both depend on the stock market. The fund fell 13.6% from September 2021 to October 2022 and took about 20 months to recover. That could hurt anyone forced to sell in a downturn.
Does OVT pay monthly dividends?
No. OVT pays quarterly. Over the 12 months to October 27, 2026, it paid about $1.54 per share, a trailing yield of 7.19%. The payouts combine interest from its bond holding, the Vanguard Short-Term Corporate Bond ETF, with income from its options strategy. Option premiums change with market conditions, so future payments may be higher or lower and are not guaranteed.
What's the difference between OVT and VCSH?
OVT owns VCSH and adds an options strategy on top. As of August 31, 2026, the Vanguard Short-Term Corporate Bond ETF made up about 100% of OVT's assets. OVT also sells weekly put spreads on S&P 500 index options to earn extra income. That overlay raises OVT's income potential but brings stock-market risk, and losses can exceed the premiums collected. OVT charges 0.79% a year. Owning VCSH directly gives the bond exposure without the overlay.
Why did OVT lose money in 2022?
Both halves of its strategy can lose at the same time, and in 2022 the stock market had a bear market. OVT returned −9.66% for calendar 2022, its worst year. Its weakest quarter was the first quarter of 2022, at −4.56%. Bond prices generally fall when interest rates rise. OVT's put spreads lose value when the stock index falls. From its January 4, 2022 peak, the fund dropped 12.5% by September 30. It did not recover until March 2024.
How does OVT compare with buffer ETFs like BUFR?
They follow different strategies, so they aren't close substitutes. Buffer funds such as the FT Vest Laddered Buffer ETF (BUFR) aim for stock-market returns with some protection against losses. OVT is a short-term bond fund with a put-selling overlay. OVT is cheaper, at 0.79% a year versus 0.95% for BUFR. As of October 27, 2026, its one-year return was 3.3%, versus 11.6% for BUFR.