ETF Evaluator:
Overlay Shares Municipal Bond ETF (OVM)
Follow This ETF
(as of Jul 31)
Best Performing in Muni National Long Over the Last Year
| 11.4% | Rareview Tax Advantaged Income ETF (RTAI) |
| 10.2% | Overlay Shares Municipal Bond ETF (OVM) |
| 9.5% | First Trust Flexible Muncpl Hgh Inc ETF (MFLX) |
| 9.3% | iShares Long-Term National Muni Bd ETF (LMUB) |
| 9.2% | VanEck Long Muni ETF (MLN) |
Risk
Index
Risk
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ETF Details
Overlay Shares Municipal Bond ETF Overview
Overlay Shares Municipal Bond ETF (OVM) is an actively managed Municipal Bond Muni National Long exchange-traded fund (ETF). Overlay Shares launched the ETF in 2019.
The investment seeks total return.
The fund is an actively-managed exchange-traded fund ("ETF") that seeks to achieve its objective by (i) investing in one or more other ETFs that seek to obtain exposure to the performance of investment grade municipal bonds and below investment grade municipal bonds or directly in the securities held by such ETFs and (ii) selling and purchasing listed short-term put options to generate income to the fund.
About Overlay Shares Municipal Bond ETF (OVM)
There are 2 members of the management team with an average tenure of 6.75 years: C. Shawn Gibson (2019) and Adam Stewart (2019). Management tenure is more important for actively managed ETFs than passive index ETFs.
The ETF has 2 primary benchmarks: Bloomberg US Agg Bond TR USD index with a weighting of 100% and Bloomberg Municipal TR USD index with a weighting of 100%. Overlay Shares Municipal Bond ETF has 10 securities in its portfolio. The top 10 holdings constitute 102.4% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.
Overlay Shares Municipal Bond ETF is part of the Fixed Income global asset class and is within the Municipal Bond ETF group. Overlay Shares Municipal Bond ETF has 0.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is -0.8% There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 99.4% (99.4% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Overlay Shares Municipal Bond ETF has -0.8% of the portfolio in cash.
Assets Under Management
The fund has $42 million in total assets, which is below the $752 million average for the Muni National Long category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
OVM Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Overlay Shares Municipal Bond ETF expense ratio is high compared to funds in the Muni National Long category. Overlay Shares Municipal Bond ETF has an expense ratio of 0.81%, which is 56% higher than its category average, making the fund expense ratio grade a F. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Overlay Shares Municipal Bond ETF has a portfolio turnover rate of 7%, which indicates that it holds its assets around / 0.1 years. By way of comparison, the average portfolio turnover is 22% for the Muni National Long category.
Recently, in the month of June 2026, Overlay Shares Municipal Bond ETF returned 0.3%, which earned it a grade of F, as the Muni National Long category had an average return of 1.0%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.
Overlay Shares Municipal Bond ETF has a trailing yield of 6.55%, which is above the 4.05% category average.
The fund normally distributes its income monthly and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Overlay Shares Municipal Bond ETF Grades
Year to date, the ETF has returned 4.0%, 0.9 percentage points better than the category, which translates into a grade of A. The fund has returned 10.2% over the past year (grade of A), 5.1% over the past three years (grade of B) and 1.5% per year over the past five years (grade of A).
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OVM Trailing NAV Total Returns Data as of 6/30/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| OVM Return (NAV) | 0.3% | 2.9% | 10.2% | 5.1% | 1.5% | na |
| OVM Return (Price) | 0.4% | 2.9% | 10.4% | 5.1% | 1.5% | na |
| NAV +/- Price Return | -0.164% | -0.043% | -0.187% | -0.021% | 0.054% | na |
| Muni National Long Avg | 1.0% | 3.0% | 8.6% | 4.4% | 0.2% | 1.8% |
| OVM Grade (NAV) | F | D | A | B | A | na |
| +/- Category (NAV) | -0.8% | -0.2% | 1.6% | 0.6% | 1.3% | na |
| OVM Tax-Cost Ratio | na | na | 0.0% | 0.0% | 0.0% | na |
OVM Annual NAV Total ReturnsData as of 6/30/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| OVM Return (NAV) | 4.0% | 4.4% | 3.6% | 7.1% | -11.3% | 3.8% | 6.6% | na | na | na | na |
| OVM Return (Price) | 4.2% | 4.1% | 3.4% | 7.4% | -11.3% | 4.2% | 6.2% | na | na | na | na |
| NAV +/- Price Ret | 0.044% | -0.051% | -0.047% | 0.032% | -0.003% | 0.100% | -0.064% | na | na | na | na |
| Muni National Long Avg | 3.1% | 3.9% | 2.5% | 7.4% | -14.7% | 3.3% | 6.6% | 10.0% | -0.2% | 6.9% | 1.3% |
| OVM Grade (NAV) | A | B | A | D | B | B | C | na | na | na | na |
| +/- Category | 0.9% | 0.4% | 1.0% | -0.2% | 3.4% | 0.5% | -0.0% | na | na | na | na |
| Risk Measures | |
| Beta: | 1.24 |
| R-Squared: | 91% |
| Standard Deviation: | 7.2% |
| Category Risk Index: | 0.96 |
| Category Risk Rating: | Above Average |
| Total Risk Index: | 0.59 |
| Total Risk Rating: | Below Average |
| Portfolio Characteristics | |
| Yield: | 6.6% |
| Total Assets: | $ 43 Mil |
| Share Class Assets: | $ 43 Mil |
| Turnover: | 7.0% |
| Expense Ratio: | 0.81% |
| Index Fund: | No |
| Index Tracked: | Bloomberg US Agg Bond TR USD |
| Index Weighting: | 100% |
| Leveraged: | No |
| Socially Responsible Fund: | No |
| Capital Gains Distribution Frequency: | Annually |
| Income Distribution Frequency: | Monthly |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 6.8 years | |||
| Average Tenure: 6.8 years | |||
| Managers (Year): Gibson C. Shawn (2019), Stewart Adam (2019) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 10 |
| % in Top 10 Holdings: | 102.4% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 0.0% |
Portfolio Allocation |
|
| Domestic Stock: | -0.8% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 99.4% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 2.2% |
| Cash: | -0.8% |
Purchase Information
| Legal Structure: | Open Ended Investment Company |
| Fund Family: | Overlay Shares |
| Phone Number: | 866-704-6857 |
| Website: | |
| Inception Date: | September 30, 2019 |
Expenses and Fees
| Expense Ratio (%): | 0.81% (Rating: High) |
| Category Average Expense Ratio (%): | 0.52% |
