Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Invesco Russell 1000 Dynamic Multifactor ETF (OMFL) is a passively managed exchange traded fund launched on November 8, 2017.

The fund is sponsored by Invesco. It has amassed assets over $4.74 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

Companies that fall in the large cap category tend to have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.

Qualities of growth stocks include faster growth rates compared to the broader market, as well as higher valuations and higher than average sales and earnings growth rates. Further, growth stocks have a higher level of volatility associated with them. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.

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 0.29%, making it one of the cheaper products in the space.

It has a 12-month trailing dividend yield of 0.81%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, 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 30.3% of the portfolio. Financials and Healthcare round out the top three.

Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.62% of total assets, followed by Nvidia Corp (NVDA) and Microsoft Corp (MSFT).

The top 10 holdings account for about 33.12% 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 added about 13.36% so far this year and it's up approximately 19.7% in the last one year (as of 07/31/2026). In the past 52-week period, it has traded between $57.28 and $69.33.

The ETF has a beta of 0.93 and standard deviation of 14.65% for the trailing three-year period. With about 638 holdings, it effectively diversifies company-specific risk.

Alternatives

Invesco Russell 1000 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, OMFL is a reasonable option for those seeking exposure to the Style Box - Large Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.

The Vanguard Growth Index Fund ETF Shares (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth Index Fund ETF Shares has $218.06 billion in assets, Invesco QQQ has $453.04 billion. VUG has an expense ratio of 0.03% and QQQ charges 0.18%.

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 1000 Dynamic Multifactor ETF (OMFL): ETF Research Reports

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

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