OMFS vs VYM

OMFSCInvesco Russell 2000 Dynamic Multifactor ETF

VYMAVanguard High Dividend Yield 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.

VYM The no-frills dividend workhorse. VYM buys the higher-yielding end of the US market, roughly 600 names, for four basis points: no quality screen, no dividend-growth-streak test, just yield, at scale since 2006.

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.

VYM The Fund seeks to track a benchmark index measuring the investment return of common stocks from companies characterized by high dividend yields.

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.

• VYM Four basis points a year, against a peer-group median near 0.32%. Cheaper than cohort neighbors VONV (0.06%) and FNDX (0.25%).
• Running since 2006 and now a multi-billion-dollar fund that trades actively, so ordinary orders tend to fill at tight spreads.
• Simple mandate: track the FTSE High Dividend Yield Index of US common stocks screened on yield. No manager discretion, no options overlay, plain 1940-Act fund.vanguard.com
• Pays quarterly, and among 100-plus value and multifactor rivals it stands as one of the strongest overall packages in the group.

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.

• VYM The screen is yield, not payout growth or dividend quality, so a company can qualify simply because its share price fell.
• This is a value slice by design, tilted to established payers, so it behaves differently from a total US market fund.
• Roughly 600 holdings, but weight leans toward the largest payers, so the top of the roster does more of the work than the count suggests.

Full OMFS profile⁠

Full VYM profile⁠