Core Insights - The Invesco Russell 2000 Dynamic Multifactor ETF (OMFS) aims to provide broad exposure to the Small Cap Blend segment of the US equity market and has assets exceeding $240.27 million [1] Group 1: Investment Potential - Small cap companies, defined as those with market capitalizations below $2 billion, present high potential but also come with increased risk [2] - Blend ETFs typically include a mix of growth and value stocks, offering diversified investment opportunities [2] Group 2: Costs and Performance - OMFS has an annual operating expense ratio of 0.39% and a 12-month trailing dividend yield of 1.26%, which is competitive within its peer group [3] - The ETF has increased by approximately 5.52% year-to-date and 10.72% over the past year, with a trading range between $33.88 and $43.90 in the last 52 weeks [7] Group 3: Sector Exposure and Holdings - The ETF's largest allocation is to the Financials sector, comprising about 27.7% of the portfolio, followed by Industrials and Information Technology [4] - The top 10 holdings represent about 5.58% of total assets, with Hims & Hers Health Inc (HIMS) accounting for approximately 0.7% [5] Group 4: Risk and Diversification - OMFS seeks to match the performance of the Russell 2000 Invesco Dynamic Multifactor Index, which includes 2,000 small-cap companies [6] - The ETF has a beta of 1.07 and a standard deviation of 21.09% over the trailing three-year period, indicating effective diversification of company-specific risk with around 1465 holdings [7] Group 5: Alternatives - OMFS holds a Zacks ETF Rank of 3 (Hold), suggesting it is a viable option for investors interested in the Small Cap Blend market segment [8] - Other alternatives include the Vanguard Small-Cap ETF (VB) and iShares Core S&P Small-Cap ETF (IJR), which have significantly larger asset bases and lower expense ratios [9] Group 6: Market Trends - Passively managed ETFs are gaining popularity among both institutional and retail investors due to their low costs, transparency, and tax efficiency, making them suitable for long-term investment strategies [10]

Core Insights - The Invesco Russell 2000 Dynamic Multifactor ETF (OMFS) offers investors broad exposure to the small-cap blend market segment, having debuted on November 8, 2017 [1] - The ETF industry has been traditionally dominated by market capitalization weighted indexes, but smart beta strategies are gaining traction among investors seeking to outperform the market through stock selection [2][3] Fund Overview - Managed by Invesco, OMFS has accumulated over $239.4 million in assets, positioning it as an average-sized ETF within its category [5] - The fund aims to match the performance of the Russell 2000 Invesco Dynamic Multifactor Index, which selects stocks from the Russell 2000 Index, representing 2,000 small-cap companies in the U.S. [6] Cost Structure - OMFS has an annual operating expense ratio of 0.39%, which is competitive within its peer group, and a 12-month trailing dividend yield of 1.30% [7] Sector Allocation and Holdings - The fund's largest sector allocation is to Financials at 28.1%, followed by Industrials and Information Technology [8] - Sprouts Farmers Market Inc (SFM) is the largest individual holding at 3.44% of total assets, with the top 10 holdings comprising approximately 14.19% of OMFS's total assets [9] Performance Metrics - Year-to-date, OMFS has returned approximately 2.13% and is up about 8.98% over the last 12 months as of July 16, 2025 [11] - The fund has a beta of 1.05 and a standard deviation of 21.10% over the trailing three-year period, indicating effective diversification with around 649 holdings [11] Alternatives - Investors seeking to outperform the small-cap blend segment may consider OMFS, but there are alternative ETFs such as iShares Russell 2000 ETF (IWM) and iShares Core S&P Small-Cap ETF (IJR) that may offer lower expense ratios and risk profiles [12][13]