ETF Evaluator: Overlay Shares Nasdaq 100 Income ETF () Follow This ETF

Overlay Shares Nasdaq 100 Income ETF Overview

Overlay Shares Nasdaq 100 Income ETF (OVQ) is an actively managed Nontraditional Equity Derivative Income - Diversified exchange-traded fund (ETF). Overlay Shares launched the ETF in 2026.

The investment seeks to generate tax-efficient income combined with long-term capital appreciation. Under normal circumstances, at least 80% of the fund’s net assets, plus borrowings for investment purposes, will be invested, directly or indirectly, in equity securities comprising the Nasdaq-100® Index. It is non-diversified.

About Overlay Shares Nasdaq 100 Income ETF (OVQ)

There are 2 members of the management team with an average tenure of 0.02 years: Adam Stewart (2026) and Shawn Gibson (2026). Management tenure is more important for actively managed ETFs than passive index ETFs.

Overlay Shares Nasdaq 100 Income ETF has 12 securities in its portfolio. The top 10 holdings constitute 102.1% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a nondiversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

Overlay Shares Nasdaq 100 Income ETF is part of the Equity global asset class and is within the Nontraditional Equity ETF group. Overlay Shares Nasdaq 100 Income ETF has 2.7% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 96.2% There is 2.7% 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 Nasdaq 100 Income ETF has -28.4% of the portfolio in cash.

Assets Under Management

The fund has $16 million in total assets, which is below the $1 billion average for the Derivative Income - Diversified 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.

OVQ 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 Nasdaq 100 Income ETF expense ratio is high compared to funds in the Derivative Income - Diversified category. Overlay Shares Nasdaq 100 Income ETF has an expense ratio of 0.97%, which is 33% higher than its category average, making the fund expense ratio grade a D. 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 Nasdaq 100 Income ETF has a portfolio turnover rate of 0%, which indicates that it holds its assets around /years. By way of comparison, the average portfolio turnover is 65% for the Derivative Income - Diversified category.

Recently, in the month of October 2026, Overlay Shares Nasdaq 100 Income ETF returned 0.0%, which earned it a grade of NA, as the Derivative Income - Diversified category had an average return of -2.0%. 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 Nasdaq 100 Income ETF has a trailing yield of 0.00%, which is below the 6.26% category average. The fund normally distributes its income monthly and its capital gains monthly.

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.

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