TMFX vs VTI
Motley Fool Next Index ETF vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | TMFX | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.03% | |
| AUM | $33M | $663.5B | |
| Dividend Yield | 0.05% | 1.07% | |
| Holdings | 191 | 3,543 | |
| YTD Return | +11.35% | +14.22% | |
| 1Y Return | +15.90% | +22.19% | |
| 3Y Return (annualized) | +15.40% | +21.27% | |
| 5Y Return (annualized) | - | +12.23% | |
| Volatility (annualized) | 20.3% | 15.3% | |
| Max Drawdown | -34.3% | -56.6% | |
| Fund Family | Motley Fool Asset Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 30, 2021 | May 24, 2001 |
TMFX vs VTI Performance
Motley Fool Next Index ETF (TMFX) is a ETF from Motley Fool Asset Management and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year TMFX returned +15.90% while VTI returned +22.19%. Year to date, TMFX is up 11.35% versus a gain of 14.22% for VTI.
Over three years, TMFX compounded at +15.40% per year against +21.27% for VTI. Across the full 5-year window we track, VTI has the edge at +8.14% annualized vs +4.38%. 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 15.3% for VTI. 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 -56.6% for VTI. 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 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
TMFX charges 0.50% per year while VTI 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 1.07% for VTI.
Holdings Overlap
TMFX and VTI share 154 holdings out of 2819 unique holdings combined, representing a 1.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, TMFX or VTI?
TMFX has an expense ratio of 0.50% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $47 per year of difference.
Which performed better, TMFX or VTI?
Over the past year TMFX returned +15.90% vs +22.19% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (5 years), TMFX annualized +4.38% vs +8.14% for VTI. Past performance does not guarantee future results.
Which is riskier, TMFX or VTI?
TMFX has been the more volatile fund at 20.3% annualized versus 15.3% for VTI. Worst drawdown: TMFX -34.3% vs VTI -56.6%.
Should I hold both TMFX and VTI?
TMFX and VTI have a monthly-return correlation of 0.92, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between TMFX and VTI?
TMFX and VTI share 154 common holdings with a 1.9% weight overlap. Combined, they hold 2819 unique securities.
Which pays a higher dividend, TMFX or VTI?
TMFX yields 0.05% while VTI yields 1.07%, so VTI currently pays the higher dividend yield.
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