TMFX vs VOO
Motley Fool Next Index ETF vs Vanguard S&P 500 ETF
Which is better, TMFX or VOO?
Mid Cap Growth against Large Cap Blend.
VOO has a lower expense ratio. VOO led over 1Y, 3Y and the full window. TMFX is less concentrated, with 17.7% of the fund in its ten largest positions against 37.6%.
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 | TMFX | VOO |
|---|---|---|
| Expense Ratio | 0.50% | 0.03%Best |
| AUM | $35M | $997.4B |
| Dividend Yield | 0.04% | 1.04% |
| Holdings | 200 | 509 |
| YTD Return | +10.27% | +14.14%Best |
| 1Y Return | +8.94% | +17.31%Best |
| 3Y Return (annualized) | +17.79% | +23.16%Best |
| 5Y Return (annualized) | - | +13.85% |
| Volatility (annualized) | 20.3% | 15.7%Best |
| Max Drawdown | -34.3% | -24.5%Best |
| $10,000 over 4.7 years | $12,057 | $17,358Best |
| Top 10 Weight | 17.7%Best | 37.6% |
| Fund Family | Motley Fool Asset Management | Vanguard (US) |
| Category | Equity | Equity |
| Style | Mid Cap Growth | Large Cap Blend |
| Inception | Dec 30, 2021 | Sep 7, 2010 |
Volatility and max drawdown, and the $10,000 over 4.7 years row, are measured over the window both funds cover: Dec 31, 2021 to Sep 21, 2026 (4.7 years).
TMFX 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 4.7 years both funds cover.
TMFX vs VOO Performance
Motley Fool Next Index ETF (TMFX) 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 TMFX returned +8.94% while VOO returned +17.31%. Year to date, TMFX is up 10.27% versus a gain of 14.14% for VOO.
Over three years, TMFX compounded at +17.79% per year against +23.16% for VOO.
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 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 -34.3% for TMFX 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 0.89. 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 0.04% against 1.04% for VOO.
Holdings Overlap
39.1% of TMFX's money is in holdings VOO also owns. 1.2% of VOO's money is in holdings TMFX also owns.
The two portfolios partly overlap.
37 positions in common, counted across the 197 positions we hold weights for in TMFX and 494 in VOO, against full books of 200 and 509.
What only one of them owns
Measured across the 197 and 494 positions we hold weights for.
VOO holds 450 positions TMFX does not, 98.0% of the fund.
Largest: NVDA 7.55%, AAPL 7.05%, MSFT 5.36%, AMZN 4.13%, GOOGL 3.24%
Top Shared Holdings
| Stock | Weight in TMFX | Weight in VOO | Difference |
|---|---|---|---|
| MRNAModerna therapeutics | 2.86% | 0.03% | 2.83% |
| WDAYWorkday, Inc., Class A | 2.27% | 0.05% | 2.22% |
| VEEVVeeva Systems Inc | 1.99% | 0.05% | 1.94% |
| DXCMDexcom Inc. | 1.61% | 0.05% | 1.56% |
| EQTEQT Corp. | 1.57% | 0.05% | 1.52% |
| CTSHCognizant Technology Solutions Corp. Class A | 1.52% | 0.04% | 1.48% |
| BIIBBiogen Inc. Com | 1.48% | 0.05% | 1.43% |
| RMDResmed Inc. | 1.48% | 0.05% | 1.43% |
| CBOECboe Global Market | 1.45% | 0.05% | 1.40% |
| CPRTCopart Inc | 1.42% | 0.04% | 1.38% |
39.1% of TMFX 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, TMFX or VOO?
TMFX has an expense ratio of 0.50% while VOO charges 0.03%. VOO is the cheaper option, by $47 a year on a $10,000 investment.
Which performed better, TMFX or VOO?
Over the past year TMFX returned +8.94% 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, TMFX or VOO?
TMFX has been the more volatile fund at 20.3% annualized versus 15.7% for VOO. Worst drawdown: TMFX -34.3% vs VOO -24.5%.
Should I hold both TMFX and VOO?
TMFX and VOO have a monthly-return correlation of 0.89, 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 TMFX and VOO?
39.1% of TMFX's money is in holdings VOO also owns. 1.2% of VOO's is in holdings TMFX also owns. They hold 37 positions in common, counted across the 197 positions we hold weights for in TMFX and 494 in VOO.
Which pays a higher dividend, TMFX or VOO?
TMFX yields 0.04% while VOO yields 1.04%, so VOO currently pays the higher dividend yield.
Is VOO better than TMFX?
VOO has a lower expense ratio. VOO led over 1Y, 3Y and the full window. TMFX is less concentrated, with 17.7% of the fund in its ten largest positions against 37.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.