The Motley Fool 100 Index ETF (TMFC) was launched on January 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.
Looking for broad exposure to the Large Cap Growth segment of the US equity market? You should consider the Motley Fool 100 Index ETF (TMFC), a passively managed exchange traded fund launched on January 30, 2018.
The Motley Fool 100 Index ETF continues to function as a quasi-closet index fund, closely tracking the Nasdaq 100. TMFC underperformed the Nasdaq 100 by over three percentage points in the past six months due to suboptimal stock picks, not a strategic shift. Recent allocation changes show increased exposure to GOOG and TSLA, but poor timing on MSFT and AMZN detracted from returns.
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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.