TMFM vs VOO
Motley Fool Mid Cap Growth ETF vs Vanguard S&P 500 ETF
Which is better, TMFM or VOO?
Mid Cap Growth against Large Cap Blend.
VOO has a lower expense ratio. VOO led over 1Y, 3Y and the full window. VOO is less concentrated, with 37.6% of the fund in its ten largest positions against 46.8%.
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 | TMFM | VOO |
|---|---|---|
| Expense Ratio | 0.85% | 0.03%Best |
| AUM | $117M | $997.4B |
| Dividend Yield | 0.00% | 1.04% |
| Holdings | 36 | 509 |
| YTD Return | -7.15% | +14.14%Best |
| 1Y Return | -13.86% | +17.31%Best |
| 3Y Return (annualized) | +2.46% | +23.04%Best |
| 5Y Return (annualized) | - | +13.63% |
| Volatility (annualized) | 18.3% | 15.7%Best |
| Max Drawdown | -31.8% | -24.5%Best |
| $10,000 over 4.8 years | $8,908 | $17,827Best |
| Top 10 Weight | 46.8% | 37.6%Best |
| Fund Family | Motley Fool Asset Management | Vanguard (US) |
| Category | Equity | Equity |
| Style | Mid Cap Growth | Large Cap Blend |
| Inception | Jun 17, 2014 | Sep 7, 2010 |
Volatility and max drawdown, and the $10,000 over 4.8 years row, are measured over the window both funds cover: Dec 13, 2021 to Sep 22, 2026 (4.8 years).
TMFM 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 4.8 years both funds cover.
TMFM vs VOO Performance
Motley Fool Mid Cap Growth ETF (TMFM) 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 TMFM returned -13.86% while VOO returned +17.31%. Year to date, TMFM is down 7.15% versus a gain of 14.14% for VOO.
Over three years, TMFM compounded at +2.46% per year against +23.04% for VOO.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TMFM has been the more volatile fund, with annualized monthly volatility of 18.3% compared with 15.7% 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 -31.8% for TMFM and -24.5% 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 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
TMFM charges 0.85% per year while VOO charges 0.03%. On a $10,000 position that is $85 vs $3 annually, a gap of $82 per year that compounds over a long holding period. On income, TMFM currently yields 0.00% against 1.04% for VOO.
Holdings Overlap
46.5% of TMFM's money is in holdings VOO also owns. 0.7% of VOO's money is in holdings TMFM also owns.
The two portfolios partly overlap.
13 positions in common, counted across the 32 positions we hold weights for in TMFM and 494 in VOO, against full books of 36 and 509.
What only one of them owns
Our book lists 474 positions for VOO that do not appear in our book for TMFM (98.5% of the fund), and 17 for TMFM that do not appear in VOO (49.5%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in TMFM | Weight in VOO | Difference |
|---|---|---|---|
| DXCMDexcom Inc. | 5.89% | 0.05% | 5.84% |
| AXONAxon Enterprise Inc | 4.47% | 0.07% | 4.40% |
| TYLTyler Technologies Inc | 4.31% | 0.02% | 4.29% |
| BRBroadridge Financial Solutions, Inc. | 4.26% | 0.03% | 4.23% |
| BROBrown & Brown Inc | 3.94% | 0.03% | 3.91% |
| WATWaters Corp. | 3.84% | 0.06% | 3.78% |
| SBACSba Communications Corp. Class A Real Estate Investment Tru | 3.86% | 0.03% | 3.83% |
| ADSKAutodesk, Inc. | 3.70% | 0.08% | 3.62% |
| DDOGDatadog Inc | 3.54% | 0.14% | 3.40% |
| FASTFastenal Co. | 2.44% | 0.09% | 2.35% |
46.5% of TMFM 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.
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Frequently Asked Questions
Which is cheaper, TMFM or VOO?
TMFM has an expense ratio of 0.85% while VOO charges 0.03%. VOO is the cheaper option, by $82 a year on a $10,000 investment.
Which performed better, TMFM or VOO?
Over the past year TMFM returned -13.86% vs +17.31% for VOO, so VOO leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, TMFM or VOO?
TMFM has been the more volatile fund at 18.3% annualized versus 15.7% for VOO. Worst drawdown: TMFM -31.8% vs VOO -24.5%.
Should I hold both TMFM and VOO?
TMFM and VOO have a monthly-return correlation of 0.79, 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 TMFM and VOO?
46.5% of TMFM's money is in holdings VOO also owns. 0.7% of VOO's is in holdings TMFM also owns. They hold 13 positions in common, counted across the 32 positions we hold weights for in TMFM and 494 in VOO.
Which pays a higher dividend, TMFM or VOO?
TMFM yields 0.00% while VOO yields 1.04%, so VOO currently pays the higher dividend yield.
Is VOO better than TMFM?
VOO has a lower expense ratio. VOO led over 1Y, 3Y and the full window. VOO is less concentrated, with 37.6% of the fund in its ten largest positions against 46.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.