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TMFE - ETF AI Analysis

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TMFE

Motley Fool Capital Efficiency 100 Index ETF (TMFE)

Rating:74Outperform
Price Target:
TMFE’s rating reflects a portfolio led by high-quality, financially strong companies like Alphabet (GOOG), Apple (AAPL), and Nvidia (NVDA), whose profitability, innovation in AI and technology, and generally positive long-term outlook support the fund’s overall quality. Some holdings such as Amazon (AMZN), Netflix (NFLX), and Costco (COST) face headwinds from bearish or mixed technical signals and rich valuations, which can limit near-term upside. The main risk is the fund’s heavy tilt toward large, growth-oriented tech and consumer names, which can make it more sensitive to shifts in market sentiment toward high-valuation growth stocks.
Positive Factors
Leading Mega-Cap Growth Holdings
The fund’s largest positions include well-known technology and consumer companies that have generally shown strong or steady performance, which can support long-term growth potential.
Broad Sector Diversification
Holdings spread across technology, consumer, communication services, health care, financials, and other sectors help reduce the impact if any one industry struggles.
Recent Short-Term Momentum
The ETF has shown strong gains over the past month, suggesting improving short-term performance despite a flat to slightly negative showing over the year so far.
Negative Factors
High Concentration in Top Stocks
A significant portion of the fund is invested in a small group of large companies, which increases the risk if any of these big names perform poorly.
Mixed Performance Among Key Holdings
Several major positions, including some large technology and payment stocks, have shown weak or negative performance this year, which can drag on overall returns.
U.S.-Only Market Exposure
Almost all of the ETF’s assets are invested in U.S. companies, offering little geographic diversification if the U.S. market faces a downturn.

TMFE vs. SPDR S&P 500 ETF (SPY)

TMFE Summary

TMFE is an exchange-traded fund that follows the Motley Fool Capital Efficiency 100 Index, which picks 100 U.S. companies that are good at using their money to grow and stay profitable. It holds many well-known names like Apple, Microsoft, Amazon, and Meta, and spreads investments across technology, consumer, health care, and more, giving you broad exposure to the U.S. stock market in a single investment. Someone might invest in TMFE for long-term growth and diversification across strong, efficient businesses. A key risk is that it is heavily tilted toward big tech and U.S. stocks, so its price can rise and fall sharply with that part of the market.
How much will it cost me?The Motley Fool Capital Efficiency 100 Index ETF (TMFE) has an expense ratio of 0.50%, meaning you’ll pay $5 per year for every $1,000 invested. This is higher than average for ETFs because it is actively managed, focusing on companies with strong capital efficiency strategies.
What would affect this ETF?TMFE's focus on capital-efficient companies in sectors like technology and consumer services positions it well to benefit from innovation and consumer spending trends, especially in the U.S. market. However, it could face challenges from rising interest rates, which may impact growth-oriented sectors, and regulatory changes affecting major holdings like Microsoft, Alphabet, and Meta Platforms. Economic conditions and shifts in consumer behavior will also play a key role in shaping its performance.

TMFE Top 10 Holdings

TMFE is leaning heavily on U.S. Big Tech and digital leaders, with Nvidia, Amazon, and Alphabet doing much of the heavy lifting as their AI and cloud stories keep gaining traction. Lam Research has been a standout chip-gear winner, quietly turbocharging returns from the semiconductor corner. Meta and Walmart are also rising, adding a steady tailwind from online ads and retail. On the flip side, Microsoft looks a bit tired lately, and payment giants Visa and Mastercard are lagging, so the fund’s strength is concentrated in a handful of tech-driven names.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Amazon5.60%$4.74M$2.84T39.12%
71
Outperform
Nvidia5.43%$4.59M$5.06T99.22%
76
Outperform
Alphabet Class C5.40%$4.57M$4.15T114.58%
82
Outperform
Meta Platforms5.37%$4.54M$1.71T23.44%
76
Outperform
Microsoft5.11%$4.32M$3.15T8.60%
79
Outperform
Lam Research4.91%$4.16M$334.88B262.54%
77
Outperform
Apple4.82%$4.08M$3.98T27.35%
79
Outperform
Walmart4.63%$3.91M$1.04T33.99%
78
Outperform
Visa4.57%$3.86M$589.76B-8.25%
70
Outperform
Mastercard4.49%$3.80M$449.63B-5.25%
75
Outperform

TMFE Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
28.26
Positive
100DMA
28.72
Positive
200DMA
28.69
Positive
Market Momentum
MACD
0.35
Negative
RSI
59.55
Neutral
STOCH
65.11
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For TMFE, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 28.37, equal to the 50-day MA of 28.26, and equal to the 200-day MA of 28.69, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 59.55 is Neutral, neither overbought nor oversold. The STOCH value of 65.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TMFE.

TMFE Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$84.60M0.50%
74
Outperform
$95.88M0.89%
69
Neutral
$93.17M0.85%
71
Outperform
$93.06M0.75%
68
Neutral
$86.07M0.80%
71
Outperform
$84.74M0.39%
72
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TMFE
Motley Fool Capital Efficiency 100 Index ETF
28.97
2.81
10.74%
BAMD
Brookstone Dividend Stock ETF
STNC
Stance Equity ESG Large Cap Core ETF
SOVF
Sovereign's Capital Flourish Fund
FFTY
Innovator IBD 50 ETF
ABLD
Abacus FCF Real Assets Leaders ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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