Is Invesco Russell 1000 Dynamic Multifactor ETF (OMFL) a Strong ETF Right Now?

Core Insights - The Invesco Russell 1000 Dynamic Multifactor ETF (OMFL) is a smart beta ETF launched on November 8, 2017, providing broad exposure to the Large Cap Growth category [1] - OMFL has accumulated over $4.96 billion in assets, positioning it as one of the larger ETFs in its category [5] - The ETF aims to match the performance of the Russell 1000 Invesco Dynamic Multifactor Index, which selects equity securities from the 1,000 largest U.S. companies [6] Investment Strategy - Smart beta ETFs, like OMFL, utilize non-cap weighted strategies to potentially outperform traditional market cap weighted indexes [3] - OMFL employs a rules-based methodology to select stocks based on specific fundamental characteristics [4] Cost Structure - OMFL has an annual operating expense ratio of 0.29%, which is competitive within its peer group [7] - The ETF offers a 12-month trailing dividend yield of 0.70% [7] Sector Allocation and Holdings - The largest sector allocation for OMFL is Information Technology, comprising approximately 26.4% of the portfolio [8] - Top holdings include Apple Inc (7.58%), Microsoft Corp, and Meta Platforms Inc, with the top 10 holdings accounting for about 41.49% of total assets [9] Performance Metrics - As of August 7, 2025, OMFL has gained approximately 8.25% year-to-date and 22.15% over the past year [11] - The ETF has a beta of 1.01 and a standard deviation of 15.93% over the trailing three-year period, indicating effective diversification of company-specific risk [11] Alternatives - Other ETFs in the Large Cap Growth space include Vanguard Growth ETF (VUG) and Invesco QQQ (QQQ), with VUG having $182.33 billion in assets and an expense ratio of 0.04%, while QQQ has $362.46 billion and an expense ratio of 0.20% [12]