The Invesco Russell 1000 Dynamic Multifactor ETF (OMFL) was launched on 11/08/2017, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Growth category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
Managed by Invesco, OMFL has amassed assets over $4.43 billion, making it one of the larger ETFs in the Style Box - Large Cap Growth. This particular fund, before fees and expenses, seeks to match the performance of the RUSSELL 1000 INVESCO DYNAMIC MLTIFCTR ID.
The Russell 1000 Invesco Dynamic Multifactor Index is constructed using a rules-based methodology by selecting equity securities from the Russell 1000 Index, which measures the performance of the 1,000 largest-capitalization companies in the United States.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Operating expenses on an annual basis are 0.29% for OMFL, making it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 0.81%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector - about 27.6% of the portfolio. Healthcare and Industrials round out the top three.
Taking into account individual holdings, Nvidia Corp (NVDA) accounts for about 4.61% of the fund's total assets, followed by Apple Inc (AAPL) and Micron Technology Inc (MU).
Its top 10 holdings account for approximately 27.19% of OMFL's total assets under management.
Performance and Risk
Year-to-date, the Invesco Russell 1000 Dynamic Multifactor ETF has added about 4.75% so far, and it's up approximately 22.77% over the last 12 months (as of 04/15/2026). OMFL has traded between $50.03 $63.89 in this past 52-week period.
The fund has a beta of 0.94 and standard deviation of 14.65% for the trailing three-year period. With about 671 holdings, it effectively diversifies company-specific risk .
Alternatives
Invesco Russell 1000 Dynamic Multifactor ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Growth segment of the market. There are other ETFs in the space which investors could consider as well.
Vanguard Growth Index Fund ETF Shares (VUG) tracks CRSP U.S. Large Cap Growth Index and the Invesco QQQ (QQQ) tracks NASDAQ-100 Index. Vanguard Growth Index Fund ETF Shares has $202.29 billion in assets, Invesco QQQ has $405.66 billion. VUG has an expense ratio of 0.03% and QQQ changes 0.18%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Growth
Bottom Line
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Invesco Russell 1000 Dynamic Multifactor ETF (OMFL): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).