Is Invesco Russell 1000 Dynamic Multifactor ETF (OMFL) a Strong ETF Right Now?

Designed to provide broad exposure to the Style Box - Large Cap Growth category of the market, the Invesco Russell 1000 Dynamic Multifactor ETF (OMFL) is a smart beta exchange traded fund launched on 11/08/2017.

What Are Smart Beta ETFs?

Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.

Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.

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.

This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.

Fund Sponsor & Index

The fund is managed by Invesco, and has been able to amass over $4.92 billion, which makes 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

Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.

Annual operating expenses for OMFL are 0.29%, which makes it on par with most peer products in the space.

The fund has a 12-month trailing dividend yield of 0.67%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

Representing 28.4% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Financials and Consumer Staples round out the top three.

When you look at individual holdings, Apple Inc (AAPL) accounts for about 9.31% of the fund's total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA).

The top 10 holdings account for about 43.11% of total assets under management.

Performance and Risk

So far this year, OMFL has gained about 13.37%, and it's up approximately 10.18% in the last one year (as of 12/10/2025). During this past 52-week period, the fund has traded between $48.43 and $61.32.

The ETF has a beta of 0.95 and standard deviation of 14.80% for the trailing three-year period. With about 581 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 ETF (VUG) tracks CRSP U.S. Large Cap Growth Index and the Invesco QQQ (QQQ) tracks NASDAQ-100 Index. Vanguard Growth ETF has $204.02 billion in assets, Invesco QQQ has $410.79 billion. VUG has an expense ratio of 0.04% and QQQ changes 0.20%.

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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This article originally published on Zacks Investment Research (zacks.com).

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