If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the Invesco Russell 1000 Dynamic Multifactor ETF (OMFL Quick QuoteOMFL - Free Report) , a passively managed exchange traded fund launched on November 8, 2017.

The fund is sponsored by Invesco. It has amassed assets over $4.74 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.

Why Large Cap Growth

Large cap companies usually have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.

Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Something to keep in mind is the higher level of volatility that is affiliated with growth stocks. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.

Costs

Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.

Annual operating expenses for this ETF are 0.29%, making it one of the cheaper products in the space.

It has a 12-month trailing dividend yield of 0.84%.

Sector Exposure and Top Holdings

While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Information Technology sector -- about 35.9% of the portfolio. Healthcare and Industrials round out the top three.

Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.61% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA).

The top 10 holdings account for about 36.36% of total assets under management.

Performance and Risk

OMFL seeks to match the performance of the RUSSELL 1000 INVESCO DYNAMIC MLTIFCTR ID before fees and expenses. The Russell 1000 Invesco Dynamic Multifactor Index is constructed using a rules-based methodology by selecting equity securities from the Russell 1000 Index, which measures the performance of the 1,000 largest-capitalization companies in the United States.

The ETF has added about 15.12% so far this year and was up about 17.23% in the last one year (as of 09/30/2026). In the past 52-week period, it has traded between $57.28 and $71.42.

The ETF has a beta of 0.93 and standard deviation of 14.47% for the trailing three-year period. With about 634 holdings, it effectively diversifies company-specific risk.

Alternatives

Invesco Russell 1000 Dynamic Multifactor ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, OMFL is an excellent option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.

The Vanguard Morningstar Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Morningstar Growth ETF has $231.45 billion in assets, Invesco QQQ has $496.63 billion. VUG has an expense ratio of 0.03% and QQQ charges 0.18%.

Bottom-Line

Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are 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.