Designed to provide broad exposure to the Small Cap Blend segment of the US equity market, the Invesco Russell 2000 Dynamic Multifactor ETF (OMFS Quick QuoteOMFS - Free Report) is a passively managed exchange traded fund launched on November 8, 2017.

The fund is sponsored by Invesco. It has amassed assets over $266.26 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 Blend

There's a lot of potential to investing in small cap companies, but with market capitalization below $2 billion, that high potential comes with even higher risk.

Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.

Costs

Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining 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 0.78%.

Sector Exposure and Top Holdings

ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Financials sector -- about 19% of the portfolio. Industrials and Information Technology round out the top three.

Looking at individual holdings, Echostar Corp (SATS) accounts for about 0.76% of total assets, followed by Commscope Holding Co Inc (COMM) and Hut 8 Corp (HUT).

The top 10 holdings account for about 5.84% of total assets under management.

Performance and Risk

OMFS 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 return is roughly 15.55% so far this year and it's up approximately 13.75% in the last one year (as of 12/25/2025). In the past 52-week period, it has traded between $33.88 and $46.53.

The ETF has a beta of 0.98 and standard deviation of 20.42% for the trailing three-year period. With about 1709 holdings, it effectively diversifies company-specific risk.

Alternatives

Invesco 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 reasonable 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 $76.34 billion in assets, iShares Core S&P Small-Cap ETF has $90.22 billion. IWM has an expense ratio of 0.19% and IJR charges 0.06%.

Bottom-Line

An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also 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.