TMFX vs VYM
Motley Fool Next Index ETF vs Vanguard High Dividend Yield ETF
Which is better, TMFX or VYM?
Mid Cap Growth against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y, 3Y and the full window. TMFX is less concentrated, with 17.7% of the fund in its ten largest positions against 26.1%.
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 | VYM |
|---|---|---|
| Expense Ratio | 0.50% | 0.04%Best |
| AUM | $35M | $81.6B |
| Dividend Yield | 0.04% | 2.22% |
| Holdings | 200 | 613 |
| YTD Return | +9.96% | +12.29%Best |
| 1Y Return | +9.67% | +16.61%Best |
| 3Y Return (annualized) | +16.60% | +17.42%Best |
| 5Y Return (annualized) | - | +12.12% |
| Volatility (annualized) | 20.3% | 13.6%Best |
| Max Drawdown | -34.3% | -15.8%Best |
| $10,000 over 4.7 years | $12,030 | $16,290Best |
| Top 10 Weight | 17.7%Best | 26.1% |
| Fund Family | Motley Fool Asset Management | Vanguard (US) |
| Category | Equity | Equity |
| Style | Mid Cap Growth | Large Cap Value |
| Inception | Dec 30, 2021 | Nov 10, 2006 |
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 17, 2026 (4.7 years).
TMFX vs VYM 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 VYM Performance
Motley Fool Next Index ETF (TMFX) is an ETF from Motley Fool Asset Management and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year TMFX returned +9.67% while VYM returned +16.61%. Year to date, TMFX is up 9.96% versus a gain of 12.29% for VYM.
Over three years, TMFX compounded at +16.60% per year against +17.42% for VYM.
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 13.6% 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 -34.3% for TMFX and -15.8% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
TMFX charges 0.50% per year while VYM charges 0.04%. On a $10,000 position that is $50 vs $4 annually, a gap of $46 per year that compounds over a long holding period. On income, TMFX currently yields 0.04% against 2.22% for VYM.
Holdings Overlap
15.9% of TMFX's money is in holdings VYM also owns. 1.2% of VYM's money is in holdings TMFX also owns.
TMFX and VYM share little of their money.
28 positions in common, counted across the 197 positions we hold weights for in TMFX and 557 in VYM, against full books of 200 and 613.
What only one of them owns
Measured across the 197 and 557 positions we hold weights for.
VYM holds 501 positions TMFX does not, 95.8% of the fund.
Largest: AVGO 7.35%, JPM 3.82%, XOM 2.63%, JNJ 2.51%, CSCO 1.86%
Top Shared Holdings
| Stock | Weight in TMFX | Weight in VYM | Difference |
|---|---|---|---|
| EQTEQT Corp. | 1.57% | 0.13% | 1.44% |
| CTSHCognizant Technology Solutions Corp. Class A | 1.52% | 0.11% | 1.41% |
| WSMWilliams-sonoma Inc | 1.15% | 0.11% | 1.04% |
| DGXQuest Diagnostics Inc | 1.15% | 0.10% | 1.05% |
| SSNCSs&C Technologies Holdings Inc. | 0.95% | 0.06% | 0.89% |
| TSCOTractor Supply Co. | 0.81% | 0.07% | 0.74% |
| BWABorgWarner Inc | 0.64% | 0.05% | 0.59% |
| MKCMccormick & Co Inc. | 0.64% | 0.05% | 0.59% |
| HASHasbro Inc. | 0.60% | 0.05% | 0.55% |
| RPMRpm International Inc | 0.58% | 0.05% | 0.53% |
You are not choosing between two funds in isolation.
Whichever of TMFX and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, TMFX or VYM?
TMFX has an expense ratio of 0.50% while VYM charges 0.04%. VYM is the cheaper option, by $46 a year on a $10,000 investment.
Which performed better, TMFX or VYM?
Over the past year TMFX returned +9.67% vs +16.61% for VYM, so VYM leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, TMFX or VYM?
TMFX has been the more volatile fund at 20.3% annualized versus 13.6% for VYM. Worst drawdown: TMFX -34.3% vs VYM -15.8%.
Should I hold both TMFX and VYM?
TMFX and VYM have a monthly-return correlation of 0.76, 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 VYM?
15.9% of TMFX's money is in holdings VYM also owns. 1.2% of VYM's is in holdings TMFX also owns. They hold 28 positions in common, counted across the 197 positions we hold weights for in TMFX and 557 in VYM.
Which pays a higher dividend, TMFX or VYM?
TMFX yields 0.04% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is VYM better than TMFX?
VYM has a lower expense ratio. VYM led over 1Y, 3Y and the full window. TMFX is less concentrated, with 17.7% of the fund in its ten largest positions against 26.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.