If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the Motley Fool 100 Index ETF (TMFC), a passively managed exchange traded fund launched on January 30, 2018.
The current bull market has lasted 16 years, pushing valuations to levels comparable to past bubbles like the dot-com era and the Nifty Fifty period of the 1970s. TMFC, an ETF tracking the Motley Fool 100 Index, heavily invests in popular high-growth stocks, with an average P/E ratio around 35, which is historically high and risky. The top 10 holdings in TMFC include major tech giants with an average P/E ratio above 48, echoing past market bubbles, where high valuations eventually led to steep declines.
The Motley Fool 100 Index ETF (TMFC) was launched on 01/30/2018, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
| BATS Exchange | US Country |
The company operates a fund focused on investing in the U.S. equity market, particularly aiming to mirror the performance of a proprietary index developed by TMF in 2017. This index is composed of the 100 largest and most liquid U.S. companies that are highly rated by TMF's analysts and featured in its newsletters. A distinguishing feature of this fund is its strategy to allocate at least 80% of its total assets to the securities that form part of this select index, although it does not diversify its investments extensively beyond this scope. The investment philosophy underscores a belief in the potential growth and stability of these handpicked companies, guided by the expert analysis and recommendations from TMF.
This offering allows investors to directly benefit from the performance of the top 100 most liquid and largest U.S. companies, as determined by TMF's analysts. By investing predominantly in the securities within the TMF-established index, the fund provides a focused yet robust exposure to the U.S. equity market. The selection is based on a proprietary, rules-based criteria, aiming to capture the growth and performance of these elite companies.