Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Invesco Russell 1000 Dynamic Multifactor ETF (OMFL – Free Report) is a passively managed exchange traded fund launched on 11/08/2017.
The fund is sponsored by Invesco. It has amassed assets over $5.08 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Large cap companies typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
While growth stocks do boast higher than average sales and earnings growth rates, and they are expected to grow faster than the wider market, investors should note these kinds of stocks have higher valuations. Also, growth stocks are a type of equity that carries more risk compared to others. When you consider growth versus value, growth stocks are usually the clear winner in strong bull markets but tend to fall flat in nearly all other environments.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.29%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.22%.
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 Information Technology sector–about 27.50% of the portfolio. Financials and Telecom round out the top three.
Looking at individual holdings, Meta Platforms Inc (META – Free Report) accounts for about 5.25% of total assets, followed by Costco Wholesale Corp (COST – Free Report) and Berkshire Hathaway Inc (BRK/B).
The top 10 holdings account for about 43.45% of total assets under management.
Performance and Risk
OMFL seeks to match the performance of the RUSSELL 1000 INVESCO DYNAMIC MLTIFCTR ID before fees and expenses. 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.
The ETF has gained about 0.30% so far this year and is up about 9.49% in the last one year (as of 01/08/2025). In the past 52-week period, it has traded between $47.65 and $56.58.
The ETF has a beta of 1.01 and standard deviation of 17.14% for the trailing three-year period. With about 250 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco Russell 1000 Dynamic Multifactor ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, OMFL is an excellent option for investors seeking exposure to the Style Box – Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Growth ETF (VUG – Free Report) and the Invesco QQQ (QQQ – Free Report) track a similar index. While Vanguard Growth ETF has $156.70 billion in assets, Invesco QQQ has $321.97 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also 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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