ETF Comparison

OVL vs TDAQ: Which Is the Better Pick in 2026?

A head-to-head comparison of Overlay Shares Large Cap Equity ETF and TappAlpha Innovation 100 Growth & Daily Income ETF covering yield, cost, risk, and income potential.

Updated September 30, 2026

How these figures are calculated: methodology.

Best for

OVLInvestors who want broader S&P 500 exposure and lower measured market sensitivity.
TDAQInvestors who want Nasdaq-100 exposure and can accept a more concentrated book.

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Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.

OVL has lagged TDAQ over the trailing twelve months, posting a 18.66% total return against 23.81%. Measured from Sep 2025 — the start of shared available history — TDAQ has compounded at 27.12% a year versus 20.29% for OVL. OVL has been the steadier holding, though — annualized volatility of 15.3% against 19.6% for TDAQ. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
Symbol	YTD cumulative	1Y cumulative	Since Sep 2025	Volatility	Sharpe	Sortino	Max drawdown
OVL	14.06%	18.66%	20.29%	15.3%	0.82	1.18	-8.7%
TDAQ	18.86%	23.81%	27.12%	19.6%	0.86	1.22	-11.7%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of September 30, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Sep 2025” measures every fund from September 4, 2025 — the start of shared available history — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the past year. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the past year) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Distribution rate and SEC yield

Metric	OVL	TDAQ
Forward distribution rate	10.51%	16.83%
Trailing 12-month yield	9.12%	16.54%
30-day SEC yield	—	-0.24%

Total return (price change plus reinvested distributions) is the Total returns section above. A 30-day SEC yield can sit far from the headline distribution rate; both numbers are the fund's own published fields.

Total return against the stated underlying is on OVL vs VOO, TDAQ vs QQQ.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
Metric	OVL	TDAQ
Full name	Overlay Shares Large Cap Equity ETF	TappAlpha Innovation 100 Growth & Daily Income ETF
Issuer	Overlay Shares	TappAlpha
Underlying index	S&P 500 (VOO)	Invesco QQQ Trust (QQQ)
Last Close	$56.31 as of September 30, 2026	$27.24 as of September 30, 2026
Distribution rate	10.51%	16.83%
Trailing 12-month yield	9.12%	16.54%
30-day SEC yield	—	-0.24%
Distribution Safety Score™	92	79
Safety-Adjusted Yield	9.67%	13.30%
Expense ratio	0.79%	0.83%
AUM	$462M	$386M
Distribution frequency	Monthly	Monthly
Objective	Put-selling overlay on large cap equity exposure via VOO (Vanguard S&P 500 ETF) to generate additional income.	The TappAlpha Innovation 100 Growth & Daily Income ETF (the "Fund") seeks current income while maintaining prospects for capital appreciation. The Fund’s secondary investment objective is to seek exposure to the performance of the Invesco QQQ Trust, Series 1 ("QQQ"), subject to a limit on potential investment gains.
Asset class	Equity	Equity
Inception date	09/30/2019	09/04/2025
Beta	1.17	1.287
Last dividend	$0.493 payable today	$0.382
Ex-dividend date	09/29/2026	09/15/2026

Bottom lineChoose OVL if you want broader S&P 500 exposure and lower measured market sensitivity. Choose TDAQ if you want Nasdaq-100 exposure and can accept a more concentrated book. OVL and TDAQ both use option or derivative overlays. Their tradeoff is the underlying exposure, how each option strategy is implemented, and the yield each targets; either overlay can limit upside participation, so neither offers uncapped price exposure.

How the risk works

Read this before the income numbers below: the strategy mechanics on this page shape what those payouts can cost you.

Capped upside and premium dependence. OVL and TDAQ generate income by selling options, which trades away part of a strong rally in exchange for premium. Distributions can include return of capital, and a payout the underlying assets cannot sustain shows up as NAV erosion over time — the big yield number is not free.

Learn the mechanics: Return of capital, explained · NAV erosion, explained

Model this comparison:

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Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

Overlay Shares

ETFs7

Total AUM$825M

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Overlay Shares operates a focused lineup of four income-focused ETFs designed to generate regular distributions for investors. The company specializes in option overlay strategies that aim to enhance yield through covered call and similar income-generating techniques, with its funds trading under tickers OVF, OVL, OVLH, and OVS. This niche approach to dividend enhancement differentiates Overlay Shares within the broader ETF marketplace, appealing to investors seeking higher current income through systematic option strategies.

See our curated list of related YouTube videos on OVL.

See all Overlay Shares ETFs

TappAlpha

ETFs5

Total AUM$830M

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

TappAlpha operates a focused ETF lineup of four funds organized around two main families: Growth & Daily Income and T² Lift Series. The company's fund offerings span growth-oriented strategies and daily income approaches, with ticker symbols including TDAQ, TDAX, TSPY, and TSYX that target investors seeking regular income generation or equity growth exposure. As a smaller, specialized ETF provider, TappAlpha positions itself in a niche segment of the ETF market focused on daily income strategies and differentiated growth approaches.

See our curated list of related YouTube videos on TDAQ.

See all TappAlpha ETFs

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Quick verdict

OVL (Overlay Shares Large Cap Equity ETF) and TDAQ (TappAlpha Innovation 100 Growth & Daily Income ETF) are both monthly-pay dividend ETFs, but they take different approaches.

TDAQ offers the higher yield at 16.83% vs 10.51% for OVL. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

OVL is cheaper with an expense ratio of 0.79% compared to 0.83%.

They have different reference exposures: OVL is linked to S&P 500 (VOO) while TDAQ is linked to Invesco QQQ Trust (QQQ), which means their performance drivers differ.

OVL is the larger fund by assets ($462M), but assets alone do not establish trading costs or liquidity.

Who should choose each?

Choose OVL

Overlay Shares Large Cap Equity ETF

Want broader S&P 500 exposure — more sectors, less mega-cap concentration, and typically lower beta.
Are comfortable with an options-income strategy — a large payout in exchange for capped upside.
Want to keep costs low — a 0.79% expense ratio vs 0.83% for TDAQ.

Choose TDAQ

TappAlpha Innovation 100 Growth & Daily Income ETF

Want Nasdaq-100 exposure — fewer names, heavier technology weight, and typically a higher current distribution.
Want to maximize current income — TDAQ distributes roughly 16.83% from selling options premium, vs 10.51% for OVL.
Are comfortable with an options-income strategy — a large payout in exchange for capped upside.

Not sure? Use the income calculator and snapshot above to weigh these trade-offs against your own goals.

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Deep dive

Yield & income

On a $10,000 investment, OVL would generate roughly $87.58 cash per distribution, while TDAQ would produce $140.25 cash per distribution, at current distribution rates. Both pay monthly distributions.

OVL yield10.51%

TDAQ yield16.83%

Cash diff on $10K$52.67

Cost & efficiency

Over 10 years on $10,000, OVL would cost approximately $790 in fees vs $830 for TDAQ (simplified, not compounded). The $40.00 difference may be offset by yield or performance.

OVL ER0.79%

TDAQ ER0.83%

Strategy & risk

OVL tracks S&P 500 (VOO) with a fund of funds approach, while TDAQ tracks Invesco QQQ Trust (QQQ) with a growth approach. Beta is 1.17 for OVL and 1.287 for TDAQ, making OVL the less volatile of the two by this measure.

OVL beta1.17

TDAQ beta1.287

Fund details

OVL is managed by Overlay Shares (launched 09/30/2019) with $462M in assets. TDAQ is managed by TappAlpha (launched 09/04/2025) with $386M in assets.

OVL AUM$462M

TDAQ AUM$386M

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Frequently asked questions

What is the current distribution rate for OVL and TDAQ?

OVL currently distributes 10.51% and TDAQ 16.83%, based on fund data updated September 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is OVL or TDAQ better for dividend income?

It depends on your goals. TDAQ currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between OVL and TDAQ?

OVL (Overlay Shares Large Cap Equity ETF) tracks S&P 500 (VOO) with a fund of funds approach, while TDAQ (TappAlpha Innovation 100 Growth & Daily Income ETF) tracks Invesco QQQ Trust (QQQ) with a growth approach. They are issued by Overlay Shares and TappAlpha respectively.

Can I hold both OVL and TDAQ?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Is OVL or TDAQ safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — OVL scores 92, TDAQ scores 79, so OVL's payout currently looks the more resilient of the two. No score makes an investment risk-free — treat this as a screening signal, not a guarantee, and the leverage, options-income, or crypto caveats flagged on this page apply regardless of score.

Which has lower fees, OVL or TDAQ?

OVL has an expense ratio of 0.79% while TDAQ charges 0.83%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in OVL vs TDAQ generate?

At current rates, $10,000 in OVL would generate roughly $87.58 cash per distribution ($1,051.00 annually). The same in TDAQ would produce about $140.25 cash per distribution ($1,683.00 annually).

Which has performed better historically, OVL or TDAQ?

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OVL vs TDAQ — at a glance

Generated September 26, 2026.

Figures quoted in this analysis are from its generation date and may lag the live snapshot table above, which always shows the latest data.

Overview

OVL and TDAQ are both equity ETFs using options overlays to generate above-market distributions atop concentrated stock exposures, but they differ fundamentally in underlying asset and income strategy. OVL sells puts on the S&P 500 (via VOO) to collect premium, while TDAQ sells covered calls against the Nasdaq-100 (via QQQ), capping upside in exchange for current yield. Both use monthly distributions to pass income to shareholders.

How they differ

The largest structural difference is income source: OVL generates yield by selling downside puts (collecting premium if the market stays flat or rises), while TDAQ sells upside calls (forgoing gains above a strike in exchange for premium). This makes OVL's distribution more dependent on market stability and TDAQ's dependent on tech stocks staying below defined levels.

TDAQ's distribution rate of 16.83% nearly doubles OVL's 10.51%, though TDAQ has been operating for 1 year (since 09/04/2025). That stark yield gap reflects either more aggressive call-selling, tighter cap levels, or both—a material tail risk worth investigating. OVL's 1.17 beta is lower than TDAQ's 1.287, signaling TDAQ amplifies tech-sector moves more aggressively. Expense ratios are similar: 0.79% for OVL and 0.83% for TDAQ, though both are modest relative to their income payouts.

Who each is best for

OVL: Fits investors seeking monthly income from large-cap equity exposure who are comfortable with put-selling mechanics and can tolerate a beta above 1.0 in exchange for a moderate 10.51% yield.

TDAQ: Fits investors drawn to high current yield and Nasdaq-100 (tech-heavy) growth exposure who understand that covered-call caps limit upside and are willing to trade capital appreciation for a 16.83% monthly payout.

Key risks to know

NAV erosion at elevated distribution yields: TDAQ's 16.83% distribution rate is materially unsustainable if underlying Nasdaq-100 returns fail to keep pace; sustained shortfalls between payout and underlying growth will erode net asset value over time. OVL's 10.51% yield carries similar but lower erosion risk.

Call-cap limitation (TDAQ): Selling covered calls against QQQ caps upside returns at a predetermined strike; if the Nasdaq-100 rallies sharply, shareholders forgo gains while still bearing downside risk. This asymmetry penalizes strong market environments.

Put-selling drawdown exposure (OVL): Selling puts on the S&P 500 leaves OVL exposed to assignment risk and forced portfolio purchases during sharp declines; a crash forces the fund to take losses precisely when markets are weakest, potentially widening NAV discounts.

Concentrated underlying (both): Both funds tie their fate to single narrow indices—OVL to the S&P 500 and TDAQ to the Nasdaq-100. An earnings disappointment or sector rotation that hammers tech will hit TDAQ harder given its 1.287 beta versus OVL's 1.17.

Short track record (TDAQ): TDAQ's 1 year means its 16.83% yield and 0DTE option-selling strategy have been tested only in a benign market; investor redemption pressure or a sustained volatility spike could force policy changes.

Bottom line

If you prioritize lower volatility and a moderate, established monthly payout, OVL's put-selling approach and $462M asset base offer stability—though both funds will struggle if their underlying indices stall. If you chase maximum current yield and accept tech sector concentration and upside caps, TDAQ's 16.83% is notable, but its newness and aggressive option strategy mean the payout's durability is unproven. Past performance does not predict future results.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

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The metrics behind this comparison, explained in the Academy.

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These comparisons follow the Dividend Vision methodology.