ETF Evaluator: Overlay Shares Large Cap Equity ETF () Follow This ETF

Overlay Shares Large Cap Equity ETF Overview

Overlay Shares Large Cap Equity ETF (OVL) is an actively managed Nontraditional Equity Derivative Income 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 U.S. large cap equity securities 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 Large Cap Equity ETF (OVL)

There are 2 members of the management team with an average tenure of 6.84 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 1 primary benchmark: S&P 500 (TR) (1970) index with a weighting of 100%. Overlay Shares Large Cap Equity ETF has 11 securities in its portfolio. The top 10 holdings constitute 101.7% 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 Large Cap Equity ETF is part of the Equity global asset class and is within the Nontraditional Equity ETF group. Overlay Shares Large Cap Equity ETF has 0.5% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 98.5% There is 0.5% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Overlay Shares Large Cap Equity ETF has 0.3% of the portfolio in cash.

Assets Under Management

The fund has $349 million in total assets, which is below the $727 million average for the Derivative Income 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.

OVL 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 Large Cap Equity ETF expense ratio is above average compared to funds in the Derivative Income category. Overlay Shares Large Cap Equity ETF has an expense ratio of 0.79%, which is 5% lower than its category average, making the fund expense ratio grade a B. 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 Large Cap Equity 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 69% for the Derivative Income category.

Recently, in the month of July 2026, Overlay Shares Large Cap Equity ETF returned -0.3%, which earned it a grade of C, as the Derivative Income category had an average return of -1.5%. 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 Large Cap Equity ETF has a trailing yield of 7.41%, which is below the 19.96% 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 Large Cap Equity ETF Grades

Year to date, the ETF has returned 11.8%, 9.2 percentage points better than the category, which translates into a grade of A. The fund has returned 22.4% over the past year (grade of B), 20.7% over the past three years (grade of A) and 12.9% per year over the past five years (grade of A).

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