
This Exchange Traded Fund (ETF) operates under active management, seeking to achieve its investment objectives by employing a quality growth methodology. It constructs a concentrated portfolio, primarily investing in the common shares of top-tier, U.S.-based companies that represent a diverse range of industries. Typically, a minimum of 80% of the fund's net assets—including any capital leveraged for investment—is committed to securities issued by American mid-capitalization firms.
Is TMFM's expense ratio expensive, average, or a steal for its category?
Pro reveals the verdict on a 5-tier spectrum calibrated against ICI 2025 industry averages, with strategy-aware bands so the comparison is meaningful.

Halftime in 2025 threw a spotlight on active small- and midcap funds via the SPIVA U.S. Mid-Year 2025 report. The trend of active ETF launches is outpacing their passive peers this year.

TMFM is an actively managed ETF focused on high-quality growth names in the mid-cap echelon. Despite the alluring proposition, TMFM has underperformed IWP, IVV, and IWV since its conversion to an ETF in 2021. The growth characteristics of its concentrated, top-heavy portfolio are slightly weaker than those of IWP, and so are its quality metrics.

TMFM, Motley Fool Mid-Cap Growth ETF, has underperformed its benchmark by 3-5% annually over various time horizons. Despite its high Active Share, TMFM shows a high correlation with the iShares Russell Mid-Cap Growth ETF, questioning its diversification benefits. The fund's stock-picking strategy, focusing on quality-growth, lacks systematic and repeatable success, with many subjective qualitative assessments.

Motley Fool Mid-Cap Growth ETF has a portfolio of 31 mid-cap stocks with growth characteristics and a focus on industrials. The TMFM ETF was launched in 2014 as a mutual fund, and listed as an ETF in December 2021. TMFM has outperformed a small-cap benchmark and its competitors in 2024.

The funds track recommendations from Motley Fool's analysts.