TMFC vs VYM
Motley Fool 100 Index ETF vs Vanguard High Dividend Yield ETF
Which is better, TMFC or VYM?
Large Cap Growth against Large Cap Value.
VYM has a lower expense ratio. TMFC led over 3Y, 5Y and the full window, VYM over 1Y. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 58.9%.
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
| Metric | TMFC | VYM |
|---|---|---|
| Expense Ratio | 0.50% | 0.04%Best |
| AUM | $2.1B | $81.6B |
| Dividend Yield | 0.11% | 2.22% |
| Holdings | 104 | 613 |
| YTD Return | +11.17% | +11.35%Best |
| 1Y Return | +13.88% | +15.34%Best |
| 3Y Return (annualized) | +25.15%Best | +17.22% |
| 5Y Return (annualized) | +14.66%Best | +12.30% |
| Volatility (annualized) | 18.7% | 15.2%Best |
| Max Drawdown | -33.1%Best | -35.7% |
| $10,000 over 5 years | $19,818Best | $17,861 |
| Top 10 Weight | 58.9% | 26.1%Best |
| Fund Family | Motley Fool Asset Management | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Value |
| Inception | Jan 29, 2018 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Jan 30, 2018 to Sep 18, 2026 (8.6 years).
TMFC vs VYM 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 VYM Performance
Motley Fool 100 Index ETF (TMFC) is an ETF from Motley Fool Asset Management and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year TMFC returned +13.88% while VYM returned +15.34%. Year to date, TMFC is up 11.17% versus a gain of 11.35% for VYM.
Over three years, TMFC compounded at +25.15% per year against +17.22% for VYM; over five years the annualized figures are +14.66% and +12.30% respectively. Across the full 9-year window we track, TMFC has the edge at +17.80% annualized vs +8.94%.
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 15.2% for VYM. 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 -35.7% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.70. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
TMFC charges 0.50% per year while VYM charges 0.04%. On a $10,000 position that is $50 vs $4 annually, a gap of $46 per year that compounds over a long holding period. On income, TMFC currently yields 0.11% against 2.22% for VYM.
Holdings Overlap
16.8% of TMFC's money is in holdings VYM also owns. 21.6% of VYM's money is in holdings TMFC also owns.
VYM and TMFC share little of their money.
23 positions in common, counted across the 101 positions we hold weights for in TMFC and 557 in VYM, against full books of 104 and 613.
What only one of them owns
Measured across the 101 and 557 positions we hold weights for.
VYM holds 505 positions TMFC does not, 75.4% of the fund.
Largest: XOM 2.63%, JNJ 2.51%, CSCO 1.86%, ABBV 1.80%, BAC 1.66%
Top Shared Holdings
| Stock | Weight in TMFC | Weight in VYM | Difference |
|---|---|---|---|
| AVGOBroadcom Inc | 3.69% | 7.35% | 3.66% |
| JPMJpmorgan Chase | 3.31% | 3.82% | 0.51% |
| CVXChevron Corp | 1.44% | 1.48% | 0.04% |
| GSGoldman Sachs Group Inc/The | 1.07% | 1.13% | 0.06% |
| AMGNAmgen Inc. | 0.82% | 0.78% | 0.04% |
| DISWalt Disney Co | 0.64% | 0.69% | 0.05% |
| GILDGilead Sciences | 0.64% | 0.66% | 0.02% |
| UNPUnion Pacific Corp | 0.59% | 0.70% | 0.11% |
| TMUST-Mobile Usa Inc Esrw Usd Npv Ref Sm#585558 | 0.69% | 0.34% | 0.35% |
| BMYBristol-Myers Squibb Co. | 0.48% | 0.54% | 0.06% |
21.6% of VYM is already inside TMFC.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
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Frequently Asked Questions
Which is cheaper, TMFC or VYM?
TMFC has an expense ratio of 0.50% while VYM charges 0.04%. VYM is the cheaper option, by $46 a year on a $10,000 investment.
Which performed better, TMFC or VYM?
Over the past year TMFC returned +13.88% vs +15.34% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (9 years), TMFC annualized +17.80% vs +8.94% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, TMFC or VYM?
TMFC has been the more volatile fund at 18.7% annualized versus 15.2% for VYM. Worst drawdown: TMFC -33.1% vs VYM -35.7%.
Should I hold both TMFC and VYM?
TMFC and VYM have a monthly-return correlation of 0.70, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between TMFC and VYM?
21.6% of VYM's money is in holdings TMFC also owns. 21.6% of VYM's is in holdings TMFC also owns. They hold 23 positions in common, counted across the 101 positions we hold weights for in TMFC and 557 in VYM.
Which pays a higher dividend, TMFC or VYM?
TMFC yields 0.11% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is VYM better than TMFC?
VYM has a lower expense ratio. TMFC led over 3Y, 5Y and the full window, VYM over 1Y. VYM is less concentrated, with 26.1% 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.