TMFS vs VYM
Motley Fool Small-Cap Growth ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | TMFS | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.85% | 0.04% | |
| AUM | $60M | $81.6B | |
| Dividend Yield | 0.00% | 2.24% | |
| Holdings | 34 | 616 | |
| YTD Return | +5.00% | +15.75% | |
| 1Y Return | +5.36% | +23.85% | |
| 3Y Return (annualized) | +8.66% | +19.14% | |
| 5Y Return (annualized) | -0.40% | +12.45% | |
| Volatility (annualized) | 23.9% | 14.6% | |
| Max Drawdown | -48.8% | -58.8% | |
| Fund Family | Motley Fool Asset Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 30, 2018 | Nov 10, 2006 |
TMFS vs VYM Performance
Motley Fool Small-Cap Growth ETF (TMFS) is a ETF from Motley Fool Asset Management and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year TMFS returned +5.36% while VYM returned +23.85%. Year to date, TMFS is up 5.00% versus a gain of 15.75% for VYM.
Over three years, TMFS compounded at +8.66% per year against +19.14% for VYM; over five years the annualized figures are -0.40% and +12.45% respectively. Across the full 8-year window we track, TMFS has the edge at +9.04% annualized vs +7.06%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TMFS has been the more volatile fund, with annualized monthly volatility of 23.9% compared with 14.6% 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 -48.8% for TMFS and -58.8% for VYM. 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 0.70. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
TMFS charges 0.85% per year while VYM charges 0.04%. On a $10,000 position that is $85 vs $4 annually, a gap of $81 per year that compounds over a long holding period. On income, TMFS currently yields 0.00% against 2.24% for VYM.
Holdings Overlap
TMFS and VYM share 4 holdings out of 631 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, TMFS or VYM?
TMFS has an expense ratio of 0.85% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $81 per year of difference.
Which performed better, TMFS or VYM?
Over the past year TMFS returned +5.36% vs +23.85% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (8 years), TMFS annualized +9.04% vs +7.06% for VYM. Past performance does not guarantee future results.
Which is riskier, TMFS or VYM?
TMFS has been the more volatile fund at 23.9% annualized versus 14.6% for VYM. Worst drawdown: TMFS -48.8% vs VYM -58.8%.
Should I hold both TMFS and VYM?
TMFS and VYM have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TMFS and VYM?
TMFS and VYM share 4 common holdings with a 0.1% weight overlap. Combined, they hold 631 unique securities.
Which pays a higher dividend, TMFS or VYM?
TMFS yields 0.00% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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