Should Motley Fool 100 Index ETF (TMFC) Be on Your Investing Radar?

Core Insights - The Motley Fool 100 Index ETF (TMFC) is a passively managed ETF launched on January 30, 2018, with assets exceeding $1.59 billion, targeting the Large Cap Growth segment of the US equity market [1][10]. Group 1: Large Cap Growth Overview - Large cap companies typically have a market capitalization above $10 billion, offering stability and more reliable cash flows compared to mid and small cap companies [2]. - Growth stocks are characterized by higher sales and earnings growth rates, but they also come with higher valuations and volatility [3]. Group 2: Costs and Performance - The ETF has an annual operating expense ratio of 0.5% and a 12-month trailing dividend yield of 0.36% [4]. - TMFC has achieved a return of approximately 11.14% year-to-date and 29.34% over the past year, with a trading range between $49.85 and $66.92 in the last 52 weeks [8]. Group 3: Sector Exposure and Holdings - The ETF's largest allocation is to the Information Technology sector, comprising about 42.9% of the portfolio, followed by Telecom and Consumer Discretionary [5]. - Nvidia Corp (NVDA) represents about 10.18% of total assets, with the top 10 holdings accounting for approximately 59.27% of total assets under management [6]. Group 4: Index and Risk - TMFC aims to replicate the performance of the Motley Fool 100 Index, which includes the 100 largest US companies by market cap, reconstituted quarterly [7]. - The ETF has a beta of 1.13 and a standard deviation of 19.92% over the trailing three-year period, indicating effective diversification with about 104 holdings [8]. Group 5: Alternatives - Other ETFs in the same space include the Vanguard Growth ETF (VUG) and Invesco QQQ (QQQ), with VUG having $184.51 billion in assets and an expense ratio of 0.04%, while QQQ has $363.71 billion and charges 0.2% [11]. Group 6: Bottom-Line - Passively managed ETFs like TMFC are increasingly popular due to their low costs, transparency, flexibility, and tax efficiency, making them suitable for long-term investors [12].