TMFM is an actively managed ETF focused on high-quality growth names in the mid-cap echelon. Despite the alluring proposition, TMFM has underperformed IWP, IVV, and IWV since its conversion to an ETF in 2021. The growth characteristics of its concentrated, top-heavy portfolio are slightly weaker than those of IWP, and so are its quality metrics.
TMFM, Motley Fool Mid-Cap Growth ETF, has underperformed its benchmark by 3-5% annually over various time horizons. Despite its high Active Share, TMFM shows a high correlation with the iShares Russell Mid-Cap Growth ETF, questioning its diversification benefits. The fund's stock-picking strategy, focusing on quality-growth, lacks systematic and repeatable success, with many subjective qualitative assessments.
Motley Fool Mid-Cap Growth ETF has a portfolio of 31 mid-cap stocks with growth characteristics and a focus on industrials. The TMFM ETF was launched in 2014 as a mutual fund, and listed as an ETF in December 2021. TMFM has outperformed a small-cap benchmark and its competitors in 2024.