TMFX vs VOO
Motley Fool Next Index ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | TMFX | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.03% | |
| AUM | $33M | $979.0B | |
| Dividend Yield | 0.05% | 1.09% | |
| Holdings | 191 | 509 | |
| YTD Return | +11.81% | +13.79% | |
| 1Y Return | +18.77% | +23.01% | |
| 3Y Return (annualized) | +15.74% | +21.78% | |
| 5Y Return (annualized) | - | +13.39% | |
| Volatility (annualized) | 20.3% | 14.1% | |
| Max Drawdown | -34.3% | -34.3% | |
| Fund Family | Motley Fool Asset Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 30, 2021 | Sep 7, 2010 |
TMFX vs VOO Performance
Motley Fool Next Index ETF (TMFX) is a ETF from Motley Fool Asset Management and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year TMFX returned +18.77% while VOO returned +23.01%. Year to date, TMFX is up 11.81% versus a gain of 13.79% for VOO.
Over three years, TMFX compounded at +15.74% per year against +21.78% for VOO. Across the full 5-year window we track, VOO has the edge at +13.57% annualized vs +4.48%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TMFX has been the more volatile fund, with annualized monthly volatility of 20.3% compared with 14.1% 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 -34.3% for TMFX and -34.3% for VOO. 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 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
TMFX 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, TMFX currently yields 0.05% against 1.09% for VOO.
Holdings Overlap
TMFX and VOO share 34 holdings out of 661 unique holdings combined, representing a 1.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, TMFX or VOO?
TMFX has an expense ratio of 0.50% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $47 per year of difference.
Which performed better, TMFX or VOO?
Over the past year TMFX returned +18.77% vs +23.01% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (5 years), TMFX annualized +4.48% vs +13.57% for VOO. Past performance does not guarantee future results.
Which is riskier, TMFX or VOO?
TMFX has been the more volatile fund at 20.3% annualized versus 14.1% for VOO. Worst drawdown: TMFX -34.3% vs VOO -34.3%.
Should I hold both TMFX and VOO?
TMFX and VOO have a monthly-return correlation of 0.89, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TMFX and VOO?
TMFX and VOO share 34 common holdings with a 1.0% weight overlap. Combined, they hold 661 unique securities.
Which pays a higher dividend, TMFX or VOO?
TMFX yields 0.05% while VOO yields 1.09%, so VOO currently pays the higher dividend yield.
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