TMFC vs VOO

TMFC vs VOO

Which is better, TMFC or VOO?

Large Cap Growth against Large Cap Blend.

VOO has a lower expense ratio. TMFC led over 3Y, 5Y and the full window, VOO over 1Y. The two have moved almost in lockstep, correlation 0.94. VOO is less concentrated, with 37.6% of the fund in its ten largest positions against 58.9%.

Lower Fees: VOOHigher Returns: splitLess Concentrated: VOO

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricTMFCVOO
Expense Ratio0.50%0.03%Best
AUM$2.1B$997.4B
Dividend Yield0.11%1.04%
Holdings104509
YTD Return+11.17%+12.37%Best
1Y Return+13.88%+16.61%Best
3Y Return (annualized)+25.15%Best+21.37%
5Y Return (annualized)+14.66%Best+13.49%
Volatility (annualized)18.7%16.4%Best
Max Drawdown-33.1%Best-34.3%
$10,000 over 5 years$19,818Best$18,827
Top 10 Weight58.9%37.6%Best
Fund FamilyMotley Fool Asset ManagementVanguard (US)
CategoryEquityEquity
StyleLarge Cap GrowthLarge Cap Blend
InceptionJan 29, 2018Sep 7, 2010

Volatility and max drawdown are measured over the window both funds cover: Jan 30, 2018 to Sep 18, 2026 (8.6 years).

TMFC vs VOO growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 8.6 years both funds cover.

TMFC vs VOO Performance

Motley Fool 100 Index ETF (TMFC) is an ETF from Motley Fool Asset Management and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year TMFC returned +13.88% while VOO returned +16.61%. Year to date, TMFC is up 11.17% versus a gain of 12.37% for VOO.

Over three years, TMFC compounded at +25.15% per year against +21.37% for VOO; over five years the annualized figures are +14.66% and +13.49% respectively. Across the full 9-year window we track, TMFC has the edge at +17.80% annualized vs +13.27%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

TMFC has been the more volatile fund, with annualized monthly volatility of 18.7% compared with 16.4% for VOO. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -33.1% for TMFC and -34.3% for VOO. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.94. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

TMFC charges 0.50% per year while VOO charges 0.03%. On a $10,000 position that is $50 vs $3 annually, a gap of $47 per year that compounds over a long holding period. On income, TMFC currently yields 0.11% against 1.04% for VOO.

Holdings Overlap

TMFC already in VOO98.1%
VOO already in TMFC52.5%

98.1% of TMFC's money is in holdings VOO also owns. 52.5% of VOO's money is in holdings TMFC also owns.

Most of TMFC is already inside VOO. Owning both mostly buys the same companies twice.

89 positions in common, counted across the 101 positions we hold weights for in TMFC and 494 in VOO, against full books of 104 and 509.

What only one of them owns

Measured across the 101 and 494 positions we hold weights for.

VOO holds 398 positions TMFC does not, 46.6% of the fund.

Largest: GOOGL 3.24%, MU 1.44%, LLY 1.41%, XOM 1.00%, JNJ 0.96%

Top Shared Holdings

StockWeight in TMFCWeight in VOODifference
NVDANvidia Corp11.13%7.55%3.58%
AAPLApple, Inc9.74%7.05%2.69%
MSFTMicrosoft Corp7.78%5.36%2.42%
GOOGAlphabet Inc8.33%2.62%5.71%
AMZNAmazon.Com Inc5.60%4.13%1.47%
AVGOBroadcom Inc3.69%2.86%0.83%
BRK.BBerkshire Hathaway Inc Brk/B Us Equity3.74%1.46%2.28%
JPMJpmorgan Chase3.31%1.46%1.85%
METAMeta Platforms Inc2.24%1.90%0.34%
AMDAdvanced Micro Devices, Inc2.63%1.21%1.42%

98.1% of TMFC is already inside VOO.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

TMFCVOO

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Frequently Asked Questions

Which is cheaper, TMFC or VOO?

TMFC has an expense ratio of 0.50% while VOO charges 0.03%. VOO is the cheaper option, by $47 a year on a $10,000 investment.

Which performed better, TMFC or VOO?

Over the past year TMFC returned +13.88% vs +16.61% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (9 years), TMFC annualized +17.80% vs +13.27% for VOO. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, TMFC or VOO?

TMFC has been the more volatile fund at 18.7% annualized versus 16.4% for VOO. Worst drawdown: TMFC -33.1% vs VOO -34.3%.

Should I hold both TMFC and VOO?

TMFC and VOO have a monthly-return correlation of 0.94, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.

What is the holdings overlap between TMFC and VOO?

98.1% of TMFC's money is in holdings VOO also owns. 52.5% of VOO's is in holdings TMFC also owns. They hold 89 positions in common, counted across the 101 positions we hold weights for in TMFC and 494 in VOO.

Which pays a higher dividend, TMFC or VOO?

TMFC yields 0.11% while VOO yields 1.04%, so VOO currently pays the higher dividend yield.

Is VOO better than TMFC?

VOO has a lower expense ratio. TMFC led over 3Y, 5Y and the full window, VOO over 1Y. The two have moved almost in lockstep, correlation 0.94. VOO is less concentrated, with 37.6% of the fund in its ten largest positions against 58.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.