OMFS vs VONV

OMFSCInvesco Russell 2000 Dynamic Multifactor ETF

VONVAVanguard Russell 1000 Value ETF

In short

OMFS Most multifactor funds pick a blend of tilts and hold it forever. OMFS's index rereads the economic cycle and reshuffles its tilts across the Russell 2000, making it one of the few small-cap factor funds built to change its mind on a schedule.

VONV The plain-vanilla value trade, done cheap: about 900 large US value stocks, full replication of the Russell 1000 Value Index, 0.06% a year. No factor cocktail, no premium price tag, and one of the strongest implementations in its factor peer group.

Stated mandate

OMFS The fund invests at least 80% of its assets in securities comprising its Index. The Index uses rules-based reweighting of Russell 2000 small-cap securities according to economic cycles and market conditions.

VONV The fund seeks to track the Russell 1000 Value Index, representing large-capitalization value stocks in the United States. It uses passive indexing and full replication to remain closely aligned with that benchmark.

Why people hold it

• OMFS The index reweights Russell 2000 small caps by economic cycle and market conditions, leaning on styles like value, momentum, quality and low volatility rather than freezing one blend.invesco.com
• Roughly 1,100 small caps, with at least 80% of assets in index securities. The tilts rotate; the diversification underneath stays broad.
• Live since 2017, so the rotation rules have run through real regimes, not just a backtest. Distributions come quarterly.
• Holdings stay close to the index it names, one of the tighter mandate implementations among multifactor funds.

• VONV 0.06% a year, a fraction of the typical fee among factor ETFs. On a rules-based value index there is little room for cleverness, so cost does most of the work.vanguard.com
• Full replication, not sampling: it owns the index's roughly 900 names and has stayed tightly aligned with the Russell 1000 Value benchmark since launching in 2010.
• Same Russell benchmark as pricier rivals for less: the Goldman MarketBeta version (GVUS) charges 0.12% to track the identical value index.
• A multi-billion-dollar fund that trades actively, among the easiest in its group to get in and out of, and it distributes quarterly.

Worth knowing

• OMFS 0.39% a year sits above the typical multifactor ETF and far above plain-vanilla index products in the group. The cycle rotation is what the extra buys.
• Thinly traded, so bid-ask spreads can run wider than the household-name small-cap funds. Matters most on big or hurried orders.
• PSC, the other multifactor fund here tied to the same Russell 2000 starting universe, charges 0.38%. The choice between them is about method, not price.

• VONV One screen, one style. Value only, with no quality or momentum overlay, so the ride follows the value side of the market wherever it goes.vanguard.com
• This is the entire value bucket, not a best-ideas portfolio. About 900 holdings means results hug the large-cap value category rather than stray from it.
• Cheaper exists nearby: Vanguard's VYM charges 0.04%, but it screens for dividend yield, a different portfolio than a Russell value index.

Full OMFS profile⁠

Full VONV profile⁠