Should Invesco Russell 2000 Dynamic Multifactor ETF (OMFS) Be on Your Investing Radar?

The Invesco Russell 2000 Dynamic Multifactor ETF (OMFS) was launched on 11/08/2017, and is a passively managed exchange traded fund designed to offer broad exposure to the Small Cap Blend segment of the US equity market.The fund is sponsored by Invesco. It has amassed assets over $263.45 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 BlendWith more potential comes more risk, and small cap companies, with market capitalization below $2 billion, epitomizes this way of thinking.Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.CostsInvestors 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 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 1.46%.Sector Exposure and Top HoldingsETFs offer a 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 to the Financials sector--about 26.20% of the portfolio. Industrials and Information Technology round out the top three.Looking at individual holdings, Sprouts Farmers Market Inc (SFM) accounts for about 2.85% of total assets, followed by Fabrinet (FN) and Commvault Systems Inc (CVLT).The top 10 holdings account for about 13.59% of total assets under management.Performance and RiskOMFS 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 gained about 11.05% so far this year and was up about 19% in the last one year (as of 12/11/2024). In the past 52-week period, it has traded between $34.46 and $43.90.The ETF has a beta of 1.11 and standard deviation of 21.53% for the trailing three-year period. With about 678 holdings, it effectively diversifies company-specific risk.AlternativesInvesco 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 good 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 iShares Russell 2000 ETF (IWM) and the iShares Core S&P Small-Cap ETF (IJR) track a similar index. While iShares Russell 2000 ETF has $81.41 billion in assets, iShares Core S&P Small-Cap ETF has $93.65 billion. IWM has an expense ratio of 0.19% and IJR charges 0.06%.Bottom-LineRetail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds 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.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco Russell 2000 Dynamic Multifactor ETF (OMFS): ETF Research Reports CommVault Systems, Inc. (CVLT): Free Stock Analysis Report Fabrinet (FN): Free Stock Analysis Report iShares Russell 2000 ETF (IWM): ETF Research Reports Sprouts Farmers Market, Inc. (SFM): Free Stock Analysis Report iShares Core S&P Small-Cap ETF (IJR): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks