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OVM ETF ANALYSIS

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OVM ETF FUNDAMENTALS
OVM ETF PERFORMANCE

OVM ISSUER

The Overlay Shares Municipal Bond ETF (OVM) is actively managed and employs an innovative Overlay Strategy to achieve its investment objective. This strategy involves investing in one or more other ETFs that seek exposure to investment-grade and below investment-grade municipal bonds while also selling and purchasing listed short-term put options. The Overlay Strategy aims to generate income for the fund by utilizing put spreads and hedging against declines in the S&P 500® Index, which represents approximately 80% of the U.S. equity market capitalization. The fund focuses on equity index options with European settlement and cash settlement features, striving to generate positive returns in various equity market conditions.

OVM DIVIDEND

The OVM Dividend ETF focuses on enhancing returns through a unique investment strategy. While dividends aren't its primary focus, this exchange-traded note (ETN) offers investors a cash payment at scheduled maturities or early redemptions based on its performance relative to the Russell 1000 Growth Index Total Return. Dividend eligibility and distribution in OVM are subject to the performance and policies of the underlying index, making it a potential choice for investors seeking both growth and dividend-based returns.

OVM TRACKING

The Overlay Municipal ETF (OVM) employs an active management strategy to achieve its investment objective. This ETF primarily invests in other ETFs that provide exposure to investment-grade municipal bonds and below-investment-grade municipal bonds. Additionally, OVM generates income through an overlay strategy involving the sale and purchase of listed short-term put options on the S&P 500® Index, which is comprised of approximately 500 leading U.S.-listed companies. The overlay strategy is designed to generate income for the fund and hedge against declines in the S&P 500® Index, making OVM an option for investors seeking municipal bond exposure with an added income-generating component. Please note that the overlay strategy involves the sale of put options and may entail risks associated with market volatility.

OVM CORRELATION

The correlation aspect of the Overlay Shares Municipal Bond ETF plays a crucial role in understanding its behavior in relation to its underlying investments, which consist of investment grade municipal bonds, below investment grade municipal bonds, and an Overlay Strategy involving put options on the S&P 500® Index. Given its unique investment strategy, Overlay Shares Municipal Bond ETF may have varying correlations with different asset classes and market conditions. Investors interested in this ETF's correlations can use ETF Insider's web app to study its historical correlations with other assets and sectors, providing valuable insights into its risk-return profile. Additionally, ETF Insider's visualization tool allows for a deeper analysis, helping investors make informed decisions about incorporating Overlay Shares Municipal Bond ETF into their portfolios and assessing its overlap with other investments.

OVM SECTOR

The Overlay Municipal ETF (OVM) primarily focuses on generating income through an overlay strategy involving the sale and purchase of short-term put options. This ETF aims to achieve its objective by investing in other ETFs that seek exposure to investment-grade and below-investment-grade municipal bonds while utilizing an options strategy to enhance income. The strategy involves selling short puts with a strike price typically below the S&P 500® Index's value and purchasing long puts at a lower strike price to hedge against market declines. While the strategy is designed to generate positive returns in rising and flat equity markets, it may involve higher risk in volatile market conditions, potentially leading to greater losses than profits. The fund's focus on municipal bonds and options trading makes it suitable for investors seeking income with a risk-managed approach.

OVM EXPOSURE

The OverlayShares Municipal Bond ETF (OVM) seeks to achieve its objective by investing in a mix of investment-grade municipal bonds and below investment-grade municipal bonds, or directly in the securities held by other ETFs focusing on these bonds (the Underlying Investments). Additionally, OVM employs an Overlay Strategy, involving the sale and purchase of listed short-term put options, to generate income for the Fund. These put options are linked to the S&P 500® Index, providing an income generation strategy with exposure to the U.S. equity market. The Overlay Strategy aims to capitalize on the options market, utilizing a put spread strategy, where Short Puts are sold with strike prices typically lower than the S&P 500® Index's value, and Long Puts are purchased at even lower strike prices. This strategy is designed to generate income while partially hedging against declines in the S&P 500® Index, offering an interesting combination of fixed income exposure and equity market participation. Investors can access this unique exposure through OVM and explore its characteristics further using ETF Insider's web app, which provides deep and insightful data, including overlap and correlations with other ETFs.

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FREQUENTLY ASKED QUESTIONS

Can you explain the correlation of OVM with the U.S. equity market?
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How does OVM provide exposure to the U.S. equity market?
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How does OVM's dividend strategy compare to other funds like QQQ and IWM?
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What does OVM mean on the stock market?
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What does OVM stand for on the stock market?
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What is the sector composition of OVM?
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