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Dividend Vision

ETF Comparison

OVL vs VOO: Extra Cash on Large Caps, or the Index?

A head-to-head of Overlay Shares Large Cap Equity ETF and Vanguard's S&P 500 ETF covering the call overlay, cost, and the upside you keep.

Data updated September 18, 2026

Best for

  • OVLInvestors who want to maximize current income — roughly 10.43%, generated by selling options premium.
  • VOOInvestors who want simple, diversified core exposure in one low-cost fund.

Jump to the side-by-side numbers

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.

OVL has outpaced VOO over the trailing twelve months, posting a 19.89% total return against 17.16%. The lead holds up over 5 years too: OVL has compounded at 13.16% a year, against 13.09% for VOO. VOO has been the steadier holding, though — annualized volatility of 14.9% against 18.7% for OVL. 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.
SymbolYTD1Y3Y5YSince Oct 2019Volatility Sharpe Sortino Max drawdown
OVL14.18%19.89%22.87%13.16%17.27%18.7%0.861.21-21.7%
VOO12.37%17.16%21.27%13.09%16.41%14.9%1.001.44-18.7%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of September 18, 2026. YTD and 1Y are cumulative; windows of one year or longer are annualized. “Since Oct 2019” measures every fund from October 1, 2019 — 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 trailing 3 years. 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 trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricOVLVOO
Full nameOverlay Shares Large Cap Equity ETFVanguard S&P 500 ETF
IssuerOverlay SharesVanguard
Last Close$56.86 as of September 18, 2026$701.78 as of September 18, 2026
Distribution rate10.43%1.12%
Distribution Safety Score™ 92100
Safety-Adjusted Yield 9.60%1.12%
Expense ratio0.79%0.03%
AUM$443M$1072B
Distribution frequencyMonthlyQuarterly
Underlying indexS&P 500 (VOO)S&P 500 Index
ObjectivePut-selling overlay on large cap equity exposure via VOO (Vanguard S&P 500 ETF) to generate additional income.Track the performance of the S&P 500 Index, representing 500 of the largest U.S. companies.
Asset classEquityEquity
Inception date09/30/201909/07/2010
Beta1.171.0
Last dividend$0.494$1.9622
Ex-dividend date08/27/202606/26/2026

Bottom lineChoose OVL if you want to maximize current income — roughly 10.43%, generated by selling options premium. Choose VOO if you want simple, diversified core exposure in one low-cost fund. There's no free lunch: OVL's payout comes from selling options, which caps upside and can erode the share price over time, while VOO keeps full price exposure.

OVL vs VOO: call overlay or the S&P 500?

VOO is the index. OVL starts with large-cap US stocks and sells calls for extra cash. Income now versus upside kept is the whole decision.

OVLVOO
What you ownS&P 500 (VOO)S&P 500 Index
Where returns come fromPrice change plus call premium paid outS&P 500 price change plus index dividends
Expense ratio0.79%0.03%
Distribution yield10.43%1.12%
Upside in a rallyPartially soldFull participation

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 generates 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$805M

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
Vanguard
ETFs116
Total AUM$4663B

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

Vanguard is one of the largest and most established ETF issuers, known for low-cost, broadly diversified fund offerings built on passive indexing principles. Their lineup spans multiple asset classes and strategies, including core equity and bond index funds, dividend-focused portfolios, ESG-screened options, factor-based strategies, sector exposure, target-date retirement funds, and international investments across developed and emerging markets. The platform is characterized by its emphasis on accessibility and cost efficiency across a comprehensive range of fund families, serving both individual investors seeking broad market exposure and those pursuing specific income, sustainability, or thematic objectives.

See our curated list of related YouTube videos on VOO.

See all Vanguard ETFs

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Quick verdict

OVL (Overlay Shares Large Cap Equity ETF) and VOO (Vanguard S&P 500 ETF) are both dividend ETFs, but they take different approaches.

OVL offers the higher yield at 10.43% vs 1.12% for VOO. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

VOO is cheaper with an expense ratio of 0.03% compared to 0.79%.

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

VOO is the larger fund by assets ($1072B), but assets alone do not establish trading costs or liquidity.

Who should choose each?

Choose OVL

Overlay Shares Large Cap Equity ETF

  • Want to maximize current income — OVL distributes roughly 10.43% from selling options premium, vs 1.12% for VOO.
  • Are comfortable with an options-income strategy — a large payout in exchange for capped upside.

Choose VOO

Vanguard S&P 500 ETF

  • Want simple, diversified core exposure as a portfolio building block.
  • Want to keep costs low — a 0.03% expense ratio vs 0.79% for OVL.
  • Prefer lower volatility — a beta of 1.0 vs 1.2 for OVL.

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

Deep dive

Yield & income

On a $10,000 investment, OVL would generate roughly $86.92/month, while VOO would produce $9.33/month, at current distribution rates.

OVL yield10.43%
VOO yield1.12%
Monthly diff on $10K$77.58

Cost & efficiency

Over 10 years on $10,000, OVL would cost approximately $790 in fees vs $30 for VOO (simplified, not compounded). The $760.00 difference may be offset by yield or performance.

OVL ER0.79%
VOO ER0.03%

Strategy & risk

OVL tracks S&P 500 (VOO) with a fund of funds approach, while VOO tracks S&P 500 Index with a large cap approach. Beta is 1.17 for OVL and 1.0 for VOO, making VOO the less volatile of the two by this measure.

OVL beta1.17
VOO beta1.0

Fund details

OVL is managed by Overlay Shares (launched 09/30/2019) with $443M in assets. VOO is managed by Vanguard (launched 09/07/2010) with $1072B in assets.

OVL AUM$443M
VOO AUM$1072B
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Frequently asked questions

What is the difference between OVL and VOO?

VOO (Vanguard S&P 500 ETF) tracks S&P 500 Index and keeps the whole price move, paying 1.12% quarterly. OVL (Overlay Shares Large Cap Equity ETF) starts with large-cap US stocks — it holds S&P 500 (VOO) — and sells calls against that book for extra cash, which is why it distributes 10.43%. The overlay is also why it costs 0.79% against 0.03%. In a sharp S&P 500 rally VOO keeps more of the move. Figures as of September 2026.

What is the current distribution rate for OVL and VOO?

OVL currently distributes 10.43% and VOO 1.12%, 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 VOO better for dividend income?

It depends on your goals. OVL 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.

Can I hold both OVL and VOO?

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 VOO safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — VOO scores 100, OVL scores 92, so VOO's payout currently looks the more resilient of the two. VOO has also shown lower price volatility (beta 1.00 vs 1.17 for OVL). 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 VOO?

OVL has an expense ratio of 0.79% while VOO charges 0.03%. Lower fees mean more of your investment returns stay in your pocket over time.

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

At current rates, $10,000 in OVL would generate roughly $86.92 per month ($1,043.00 annually). The same in VOO would produce about $9.33 per month ($112.00 annually).

Which has performed better historically, OVL or VOO?

OVL has outpaced VOO over the trailing twelve months, posting a 19.89% total return against 17.16%. The lead holds up over 5 years too: OVL has compounded at 13.16% a year, against 13.09% for VOO. VOO has been the steadier holding, though — annualized volatility of 14.9% against 18.7% for OVL. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

OVL vs VOO — at a glance

Generated September 19, 2026.

Overview

OVL and VOO both track the S&P 500, but they use fundamentally different strategies. VOO is a straightforward index tracker; OVL wraps VOO itself and layers a put-selling overlay to harvest options premiums. This structural difference drives a 10.43% distribution rate on OVL versus 1.12% on VOO—the extra income comes from selling downside protection, not from the underlying stocks.

How they differ

The defining difference is strategy: VOO buys and holds the S&P 500; OVL holds VOO and systematically sells puts to generate premiums, pocketing that income as distributions. As a result, OVL's 10.43% yield dwarfs VOO's 1.12%, but that income is synthetic—it comes from options positions, not dividends. Finally, OVL carries a beta of 1.17 versus VOO's 1.0, suggesting the overlay structure may amplify or dampen market swings depending on put strike selection and exercised contracts.

Who each is best for

  • VOO: Fits investors seeking low-cost, passive S&P 500 exposure with minimal frills and a predictable, modest dividend stream that matches the underlying index's yield.
  • OVL: Fits investors comfortable with options-generated income who value monthly cash flow and accept that the high distribution rate depends on put premiums rather than underlying earnings growth.

Key risks to know

  • NAV erosion at high distribution rates. OVL's 10.43% yield is roughly nine times VOO's; at that pace, capital returns are likely, and NAV can shrink if put-selling activity or market conditions limit premium collection.
  • Put assignment and forced buying. If puts are exercised during market declines, OVL is obligated to buy S&P 500 shares at pre-agreed strikes, locking in losses and potentially disrupting the fund's intended exposure or forcing a reset of the overlay.
  • Beta amplification. OVL's 1.17 exceeds VOO's 1.0, suggesting the options structure may magnify downside moves during sharp selloffs, particularly if put strikes become in-the-money and the fund faces assignment or margin pressure.
  • Options market conditions. The attractiveness and sustainability of put premiums depend on implied volatility and market pricing; periods of low volatility or rising equity valuations may compress premiums and squeeze OVL's income generation.

Bottom line

If you want broad S&P 500 exposure with minimal costs and no complexity, VOO is the baseline. If you prioritize monthly income and are willing to accept synthetic yield, options infrastructure, and the risk that high distributions reflect capital return as much as earnings, OVL warrants careful review of its NAV trajectory and distribution composition. 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.

Learn the method

The metrics behind this comparison, explained in the Academy.

How covered-call funds work How to read a fund's stats The covered-call opportunity cost

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