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TMFM - ETF AI Analysis

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TMFM

Motley Fool Mid-Cap Growth ETF (TMFM)

Rating:68Neutral
Price Target:
TMFM, the Motley Fool Mid-Cap Growth ETF, earns a solid overall rating thanks to several high-quality growth names like Dexcom, HealthEquity, and Broadridge, which show strong financial performance, positive earnings call sentiment, and promising strategic initiatives. These strengths are partly offset by holdings such as StoneX Group and QXO, where weaker profitability, cash flow challenges, and valuation concerns weigh on the fund. The main risk factor is that many top holdings share similar growth-heavy, higher-valuation profiles, which can make the ETF more sensitive to market pullbacks in expensive growth stocks.
Positive Factors
Strong Leading Holding
The largest position, StoneX Group, has shown very strong gains this year, helping support the fund’s overall results.
Sector Diversification Across Growth Areas
The ETF spreads its investments across technology, health care, industrials, financials, and several other sectors, reducing reliance on any single industry.
Focused U.S. Exposure
Almost all holdings are in U.S. companies, giving investors targeted exposure to the U.S. mid-cap growth market.
Negative Factors
High Expense Ratio
The fund charges a relatively high fee, which can eat into long-term returns compared with lower-cost ETFs.
Recent Weak Overall Performance
The ETF has delivered weak results so far this year and over the past few months, which may concern investors looking for steady growth.
Several Top Holdings Are Lagging
A number of the larger positions, including Healthequity, Dexcom, Toast, Broadridge, West Pharmaceutical Services, and Brown & Brown, have shown weak performance this year, weighing on the fund.

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

TMFM Summary

The Motley Fool Mid-Cap Growth ETF (TMFM) is an actively managed fund that focuses on medium‑sized U.S. companies with strong growth potential, rather than tracking a set index. It spreads money across areas like technology, health care, and industrials, holding names such as Dexcom and Toast. Someone might invest in TMFM to seek higher long-term growth than large, slower-moving companies, while still getting diversification across many mid-sized businesses. A key risk is that growth-focused mid-cap stocks can be more volatile, so the ETF’s price can rise and fall more sharply than the overall market.
How much will it cost me?The Motley Fool Mid-Cap Growth ETF (TMFM) has an expense ratio of 0.85%, meaning you’ll pay $8.50 per year for every $1,000 invested. This is higher than average because it is actively managed, relying on expert stock-picking to target mid-cap growth companies with strong potential.
What would affect this ETF?The TMFM ETF, with its focus on U.S. mid-cap growth companies, could benefit from advancements in technology and innovation, particularly as its largest sector exposure is technology. Positive economic conditions and increased consumer spending may also support growth in sectors like industrials and financials. However, rising interest rates or regulatory changes could negatively impact growth-focused companies, especially in sectors like real estate and financials, which are sensitive to such factors.

TMFM Top 10 Holdings

TMFM leans heavily into U.S. mid-cap growth, with a clear tilt toward tech, health care, and industrials rather than mega-cap Big Tech. StoneX Group has been the fund’s main engine lately, rising steadily and giving the portfolio a solid financials backbone. GXO Logistics and SBA Communications are also pulling their weight, adding momentum from industrials and real estate. On the flip side, health-care names like Dexcom and services players such as Toast and Broadridge have been lagging, acting as a bit of a headwind for an otherwise growth-focused, domestically centered lineup.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
StoneX Group8.64%$10.02M$8.37B69.50%
58
Neutral
QXO Inc5.34%$6.20M$14.31B47.98%
66
Neutral
GXO Logistics5.30%$6.15M$5.74B31.07%
68
Neutral
SBA Communications4.95%$5.74M$23.17B-9.10%
67
Neutral
Healthequity4.77%$5.53M$7.03B-9.23%
76
Outperform
West Pharmaceutical Services4.52%$5.25M$22.08B46.63%
68
Neutral
Dexcom4.42%$5.12M$23.29B-27.58%
79
Outperform
Toast Inc4.31%$5.00M$16.67B-20.39%
73
Outperform
Broadridge Financial Solutions4.04%$4.68M$17.68B-35.29%
78
Outperform
Datadog4.03%$4.67M$50.70B35.55%
69
Neutral

TMFM Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
20.98
Positive
100DMA
22.08
Negative
200DMA
23.43
Negative
Market Momentum
MACD
-0.02
Positive
RSI
50.87
Neutral
STOCH
53.50
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For TMFM, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 21.12, equal to the 50-day MA of 20.98, and equal to the 200-day MA of 23.43, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 50.87 is Neutral, neither overbought nor oversold. The STOCH value of 53.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TMFM.

TMFM Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$113.69M0.85%
68
Neutral
$590.53M0.20%
71
Outperform
$382.76M0.18%
71
Outperform
$317.70M0.55%
67
Neutral
$158.16M0.80%
75
Outperform
$136.47M0.60%
59
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TMFM
Motley Fool Mid-Cap Growth ETF
21.04
-4.25
-16.81%
AVMV
Avantis U.S. Mid Cap Value ETF
AVMC
Avantis U.S. Mid Cap Equity ETF
TMVE
Thrivent Mid Cap Value ETF
GLRY
Inspire Faithward Mid Cap Momentum ESG ETF
FRTY
Alger Mid Cap 40 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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