Dividend comparison

OVL vs XYLD: Which Is Better for Income?

Fees, yield, total returns, drawdowns, holdings overlap and dividend history for Overlay Shares Large Cap Equity ETF and Global X - S&P 500 Covered Call ETF, side by side. Updated October 21, 2026.

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OVL vs XYLD: key differences
The short answer, from the latest data on this page.
  • Fees. XYLD is cheaper at 0.60% a year versus 0.79% for OVL. On $10,000 that is $19 a year less in fees.
  • Income. XYLD pays more income, yielding 10.44% over the last twelve months versus 8.31% for OVL. That is about $213 more a year on $10,000. OVL pays quarterly, XYLD pays monthly.
  • Performance. Over the last 5 years, OVL returned 68.0% versus 30.2% for XYLD, with dividends reinvested. $10,000 would have grown to $16,803 in OVL and $13,019 in XYLD.
  • Risk. OVL has been the bumpier ride. Its worst peak-to-trough decline over the last 5 years was -29.2%, against -18.6% for XYLD.
  • Diversification. XYLD holds 505 positions and OVL holds 11. The ten largest positions make up 99.9% of OVL and 39.9% of XYLD.
  • Dividend growth. XYLD grew its yearly payout 4.8% a year over the last 4 years, versus 1.9% for OVL.
  • Size. XYLD is the larger fund with $3.4 billion in assets, against $501 million for OVL.

Bottom line: OVL fits better if you care most about stronger 5-year returns. XYLD fits better if you care most about lower fees, more income today, smaller drawdowns, faster dividend growth and broader diversification.

Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
MetricOVL
Overlay Shares Large Cap Equity ETF
XYLD
Global X - S&P 500 Covered Call ETF
Dividend yield (TTM)8.31%10.44%
Dividend / share (TTM)$4.72$4.32
Payout frequencyQuarterlyMonthly
Last dividend$0.4935 on Sep 30, 2026$0.2964 on Sep 24, 2026
Ex-dividend dateSep 29, 2026Oct 19, 2026
Next payment—$0.3140 on Oct 22, 2026
Dividend growth (CAGR)1.9% over 4 yrs4.8% over 4 yrs
Price$56.86$41.40
Dividend growth streak3 years1 year
Beta1.130.41
Max drawdown (5Y)-29.2%-18.6%
Market cap$167.3M$3.41B
ExchangeCBOEAMEX
Expense ratio0.79%0.60%
Assets under management$500.6M$3.38B
Number of holdings11505
Top 10 concentration99.9%39.9%
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.

OVL

$69.24/mo

$831 /yr at 8.31% yield

XYLD

$87.02/mo

$1044 /yr at 10.44% yield

Dividend history
Total dividends paid per share in each calendar year. OVL pays quarterly; XYLD pays monthly.
YearOVLXYLD
2025$1.5929$5.4603
2024$1.4448$3.9372
2023$1.2552$4.2377
2022$1.1749$5.3660
2021$1.4750$4.5310
Strategy: Options income
These funds own equities and sell call options against them, converting a share of future price appreciation into cash paid out now. How much upside is surrendered depends on the design: writing at the money on the whole portfolio pays the most and keeps the least, while writing on a partial slice or using purchased offsets keeps more of a rally. Distributions come mainly from option premium rather than from company dividends, so the headline yield is not comparable to a dividend fund's.

Payouts are variable rather than contractual, are often taxed as ordinary income, and a fund that pays out more than the strategy earns will see its net asset value drift down over time.

What OVL vs XYLD actually do

XYLD
The S&P 500 version of the Global X buy-write approach, owning the index and selling at-the-money monthly index calls.

It tracks the Cboe S&P 500 BuyWrite Index, holding S&P 500 stocks and writing one-month calls at roughly the current index level. The mechanics match its Nasdaq sibling, but S&P 500 implied volatility is lower, so the premium collected and the resulting distribution are smaller. The same distribution guideline applies, capped at the lower of half the premiums received or 1% of net asset value.

Suits someone who wants the buy-write structure applied to a broader, less concentrated index than the Nasdaq-100. Not appropriate for an account that still needs capital growth, since full at-the-money overwriting caps the market return that funds it.

High current income, capped upside

Performance
Total returns with dividends reinvested, from the adjusted closing price series. $10,000 invested on Oct 20, 2021 would now be worth $16,803 in OVL and $13,019 in XYLD.
PeriodOVLXYLD
1 month0.00%-0.05%
3 months1.14%0.61%
Year to date6.86%1.90%
1 year8.41%5.56%
3 years83.95%36.95%
5 years68.03%30.19%
  • OVL
  • XYLD
70124179202120222023202420252026168130

Both series indexed to 100 on 2021-10-20 using the adjusted closing price series. Past performance does not guarantee future results.

Sector allocation
Weight of each sector within the fund. Sectors are aligned on the same row so the two funds can be read against each other directly.
  • OVL
  • XYLD
0%10%20%30%40%Technology38.6%40.5%Financial Services12.0%11.2%Communication Services9.5%9.9%Healthcare9.3%9.3%Consumer Cyclical9.3%8.8%Industrials7.7%7.5%Consumer Defensive4.5%4.3%Energy3.5%3.4%Utilities2.0%1.9%Basic Materials1.9%1.6%Other1.8%1.7%
OVL vs XYLD holdings overlap
At least 0% overlap by weight, with 0 holdings in common. Overlap adds up the smaller of the two weights for every stock both funds own, so 100% would mean identical portfolios.
Top 10 holdings
Largest positions by portfolio weight.

OVL11 holdings total

NameWeight
VOOVanguard S&P 500 ETF99.89%

XYLD505 holdings total

NameWeight
NVDANVIDIA CORP8.32%
AAPLAPPLE INC7.57%
MSFTMICROSOFT CORP6.10%
AMZNAMAZON.COM INC3.88%
GOOGLALPHABET INC-CL A3.14%
AVGOBROADCOM INC2.57%
GOOGALPHABET INC-CL C2.51%
METAMETA PLATFORMS INC2.49%
MUMICRON TECHNOLOGY INC1.70%
TSLATESLA INC1.62%

Quick verdict

OVL fits better if you care most about stronger 5-year returns. XYLD fits better if you care most about lower fees, more income today, smaller drawdowns, faster dividend growth and broader diversification. Model the holding inside your real portfolio before deciding.

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Frequently asked questions

Is OVL or XYLD better for dividend income?
It depends on your goals. OVL currently yields 8.31% Trailing Twelve Months (TTM) while XYLD yields 10.44%. Higher yield means more current income per dollar invested, but may come with different risk, growth, or NAV characteristics. Compare total return and payout sustainability — not just the headline yield.
What is the difference between OVL and XYLD?
Overlay Shares Large Cap Equity ETF (OVL) is an ETF listed on CBOE. Global X - S&P 500 Covered Call ETF (XYLD) is an ETF listed on AMEX. Side-by-side metrics on this page cover yield, fees, returns, drawdowns, holdings overlap and dividend history when available.
Which is cheaper, OVL or XYLD?
XYLD has the lower expense ratio. OVL charges 0.79% a year and XYLD charges 0.60%, a difference of $19 a year on a $10,000 investment.
Which has performed better, OVL or XYLD?
Over the last 5 years, OVL has the higher total return with dividends reinvested: OVL returned 68.0% and XYLD returned 30.2%. Past performance does not predict future returns.
Which is riskier, OVL or XYLD?
Measured by the worst peak-to-trough decline over the last five years, OVL has been riskier: OVL fell as much as 29.2% and XYLD as much as 18.6%. Their betas are 1.13 and 0.41.
How often do OVL and XYLD pay dividends?
OVL pays quarterly and XYLD pays monthly.
How much income does $10,000 in OVL vs XYLD generate?
At current TTM yields, $10,000 in OVL would generate roughly $69.24 per month ($831 annually). The same amount in XYLD would produce about $87.02 per month ($1044 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both OVL and XYLD?
Yes. Many income investors hold both to diversify strategy or index exposure. Whether the combination actually diversifies depends on overlapping holdings and factor exposure. Model both inside Dividend Wealth to see combined income, sector mix, and forecast impact.
Where can I compare OVL vs XYLD with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how OVL and XYLD fit alongside the rest of your portfolio. A 14-day free trial of Standard is available with no credit card required; a limited Free plan is also available.

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For informational and educational purposes only. Not investment advice. Past performance and current yields do not guarantee future results. Verify figures independently before making investment decisions.