Overlay Shares Municipal Bond ETF

Frequently Asked Questions About OVM

What does OVM invest in?

OVM holds other ETFs that provide broad exposure to U.S. investment-grade municipal bonds. The fund adviser also constructs a bullish strategy on the S&P 500 by selling short put options at a strike below the level of the index and buying an equal amount put options below the strike price of the short put options. The objective is to enhance the total return of the Bloomberg Municipal Bond Index for investors. There is no guarantee the adviser will be successful. During volatile markets, the price of options could rise, which, in turn, could have a detrimental effect on the Funds performance and achieving its targeted return.

What is the expense ratio of OVM?

Overlay Shares Municipal Bond ETF (OVM) charges an expense ratio of 0.81%. This is the annual fee deducted from fund assets to cover management and operations.

What is OVM's dividend yield?

OVM's trailing-twelve-month yield is 5.34%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of OVM?

Effective duration measures OVM's sensitivity to interest-rate changes: a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. OVM's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of OVM?

OVM's credit quality breakdown (the share of holdings rated AAA through CCC and below) is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.

What is the yield to maturity of OVM?

Yield to maturity (YTM) is the total return you'd earn from OVM if every bond in the portfolio is held to maturity at the current price. OVM's YTM is published on the fund's factsheet on the issuer's website. It differs from the trailing-12-month yield because YTM reflects current bond prices rather than historical income paid.