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

If you're interested in broad exposure to the Small Cap Blend segment of the US equity market, look no further than the Invesco Russell 2000 Dynamic Multifactor ETF (OMFS), a passively managed exchange traded fund launched on November 8, 2017.The fund is sponsored by Invesco. It has amassed assets over $283.29 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. CostsCost 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 0.39%, putting it on par with most peer products in the space.It has a 12-month trailing dividend yield of 1.08%.Sector Exposure and Top HoldingsEven 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.This ETF has heaviest allocation to the Financials sector -- about 26.2% of the portfolio. Industrials and Healthcare round out the top three.Looking at individual holdings, Indivior Pharmaceuticals Inc (INDV) accounts for about 1.71% of total assets, followed by Nextpower Inc (NXT) and Interdigital Inc (IDCC).The top 10 holdings account for about 13.24% 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 added about 20.03% so far this year and is up about 31.12% in the last one year (as of 07/03/2026). In the past 52-week period, it has traded between $39.64 and $53.34.The ETF has a beta of 0.96 and standard deviation of 20.06% for the trailing three-year period. With about 1120 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 $80.93 billion in assets, iShares Core S&P Small-Cap ETF has $109.21 billion. IWM has an expense ratio of 0.19% and IJR charges 0.06%.Bottom-LineWhile an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.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.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks