Designed to provide broad exposure to the Small Cap Blend segment of the US equity market, the Invesco Russell 2000 Dynamic Multifactor ETF (OMFS) is a passively managed exchange traded fund launched on November 8, 2017.
The fund is sponsored by Invesco. It has amassed assets over $240.27 million, making it one of the average sized ETFs attempting to match the Small Cap Blend segment of the US equity market.
Why Small Cap Blend
There's a lot of potential to investing in small cap companies, but with market capitalization below $2 billion, that high potential comes with even higher risk.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.39%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.26%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector -- about 27.7% of the portfolio. Industrials and Information Technology round out the top three.
Looking at individual holdings, Hims & Hers Health Inc (HIMS) accounts for about 0.7% of total assets, followed by Brinker International Inc (EAT) and Interdigital Inc (IDCC).
The top 10 holdings account for about 5.58% of total assets under management.
Performance and Risk
OMFS seeks to match the performance of the RUSSELL 2000 INVESCO DYNAMIC MLTIFCTR ID before fees and expenses. The Russell 2000 Invesco Dynamic Multifactor Index is constructed using a rules-based methodology by selecting equity securities from the Russell 2000 Index, which measures the performance of 2,000 small-capitalization companies in the United States.
The ETF has added about 5.52% so far this year and is up about 10.72% in the last one year (as of 08/20/2025). In the past 52-week period, it has traded between $33.88 and $43.90.
The ETF has a beta of 1.07 and standard deviation of 21.09% for the trailing three-year period. With about 1465 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco Russell 2000 Dynamic Multifactor ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, OMFS is a sufficient option for those seeking exposure to the Style Box - Small Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard Small-Cap ETF (VB) and the iShares Core S&P Small-Cap ETF (IJR) track a similar index. While Vanguard Small-Cap ETF has $64.70 billion in assets, iShares Core S&P Small-Cap ETF has $82.92 billion. VB has an expense ratio of 0.05% and IJR charges 0.06%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Invesco Russell 2000 Dynamic Multifactor ETF (OMFS): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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