The Invesco Russell 1000 Dynamic Multifactor ETF (OMFL), designed to give investors extensive access to the Large Cap Growth segment of the U.S. equity market, was launched on November 8, 2017. As a passively managed ETF sponsored by Invesco, it has gathered over $5.08 billion in assets, positioning it as one of the larger funds in this growth category.
Exploring the Invesco Russell 1000 Dynamic Multifactor ETF: A Comprehensive Look
Understanding Large Cap Growth
Large cap firms typically have market capitalizations exceeding $10 billion. They are viewed as stable investments, characterized by predictable cash flows and generally lower volatility compared to mid and small cap companies. Growth stocks, while they tend to show above-average sales and earnings growth, also come with higher valuations and risks. During strong bull markets, growth stocks usually outperform, but they may struggle in less favorable conditions.
Expense Consideration
When selecting an ETF, considering costs is critical, as lower-cost funds can outperform their pricier counterparts given similar fundamentals. The annual operating expense for OMFL is 0.29%, which aligns with most competing funds. Additionally, it offers a 12-month trailing dividend yield of 1.22%.
Sector Allocation and Major Holdings
ETFs like OMFL provide diversified investment exposure, mitigating risks tied to individual stocks. Transparency is a key feature; OMFL regularly discloses its holdings. Currently, the largest allocation is to the Information Technology sector at approximately 27.50%, with Financials and Telecommunications sectors also prominent.
In terms of specific holdings, Meta Platforms Inc (META) makes up roughly 5.25% of the total assets, followed closely by Costco Wholesale Corp (COST) and Berkshire Hathaway Inc (BRK/B). Collectively, the top 10 holdings represent about 43.45% of the total assets under management.
Performance Metrics and Associated Risk
OMFL aims to replicate the performance of the RUSSELL 1000 INVESCO DYNAMIC MULTIFACTOR INDEX before any fees. This index employs a systematic approach by selecting securities from the Russell 1000 Index, which tracks the largest U.S. companies. Year-to-date, the ETF has seen a modest gain of about 0.30% and a total increase of around 9.49% over the past year (as of January 8, 2025). In the last 52 weeks, its trading range has been between $47.65 and $56.58.
The ETF has a beta of 1.01, indicating its price movement is slightly more volatile than the broader market, along with a standard deviation of 17.14% over the trailing three-year period. With around 250 holdings, it diversifies company-specific risks effectively.
Considering Alternatives
With a Zacks ETF Rank of 2 (Buy), Invesco Russell 1000 Dynamic Multifactor ETF is a solid choice for those interested in the Large Cap Growth segment. Other ETFs worth mentioning include the Vanguard Growth ETF (VUG) and Invesco QQQ (QQQ), which track similar indices. VUG boasts an impressive $156.70 billion in assets, while QQQ leads with $321.97 billion; their expense ratios are 0.04% and 0.20%, respectively.
Conclusion
Passively managed ETFs like OMFL are gaining traction among both retail and institutional investors due to their low costs, transparency, flexibility, and tax efficiency—making them excellent options for long-term investment. For those interested in learning more about this and other ETFs, consider exploring tools that align with your investment goals and staying updated with developments in the ETF landscape at Zacks ETF Center.
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Invesco Russell 1000 Dynamic Multifactor ETF (OMFL): ETF Research Reports
Costco Wholesale Corporation (COST): Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
Meta Platforms, Inc. (META): Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
