TMFC vs VTI
Motley Fool 100 Index ETF vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | TMFC | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.03% | |
| AUM | $2.0B | $663.5B | |
| Dividend Yield | 0.11% | 1.07% | |
| Holdings | 103 | 3,543 | |
| YTD Return | +12.31% | +14.16% | |
| 1Y Return | +20.28% | +23.62% | |
| 3Y Return (annualized) | +26.03% | +21.43% | |
| 5Y Return (annualized) | +14.70% | +12.33% | |
| Volatility (annualized) | 18.8% | 15.3% | |
| Max Drawdown | -33.1% | -56.6% | |
| Fund Family | Motley Fool Asset Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 29, 2018 | May 24, 2001 |
TMFC vs VTI Performance
Motley Fool 100 Index ETF (TMFC) is a ETF from Motley Fool Asset Management and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year TMFC returned +20.28% while VTI returned +23.62%. Year to date, TMFC is up 12.31% versus a gain of 14.16% for VTI.
Over three years, TMFC compounded at +26.03% per year against +21.43% for VTI; over five years the annualized figures are +14.70% and +12.33% respectively. Across the full 9-year window we track, TMFC has the edge at +18.18% annualized vs +8.14%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TMFC has been the more volatile fund, with annualized monthly volatility of 18.8% compared with 15.3% for VTI. 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 -56.6% for VTI. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
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 VTI 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 1.07% for VTI.
Holdings Overlap
TMFC and VTI share 93 holdings out of 2791 unique holdings combined, representing a 28.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, TMFC or VTI?
TMFC has an expense ratio of 0.50% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $47 per year of difference.
Which performed better, TMFC or VTI?
Over the past year TMFC returned +20.28% vs +23.62% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (9 years), TMFC annualized +18.18% vs +8.14% for VTI. Past performance does not guarantee future results.
Which is riskier, TMFC or VTI?
TMFC has been the more volatile fund at 18.8% annualized versus 15.3% for VTI. Worst drawdown: TMFC -33.1% vs VTI -56.6%.
Should I hold both TMFC and VTI?
TMFC and VTI have a monthly-return correlation of 0.94, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between TMFC and VTI?
TMFC and VTI share 93 common holdings with a 28.4% weight overlap. Combined, they hold 2791 unique securities.
Which pays a higher dividend, TMFC or VTI?
TMFC yields 0.11% while VTI yields 1.07%, so VTI currently pays the higher dividend yield.
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