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TMFS - ETF AI Analysis

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TMFS

Motley Fool Small-Cap Growth ETF (TMFS)

Rating:65Neutral
Price Target:
TMFS, the Motley Fool Small-Cap Growth ETF, earns a solid overall rating driven by strong contributors like HealthEquity, LiveRamp, Hexcel, and Q2 Holdings, which show robust growth prospects, healthy financials, and generally supportive technical trends despite some valuation concerns. However, weaker names such as Evolv Technologies, which faces profitability, cash flow, and bearish technical challenges, weigh on the fund’s rating. The main risk factor is its focus on small-cap growth stocks, where higher volatility, occasional overvaluation, and company-specific financial pressures can lead to sharper ups and downs.
Positive Factors
Strong Lead Holding
The largest position, StoneX Group, has shown very strong gains this year, giving the fund a helpful performance boost.
Recent Short-Term Momentum
The ETF has delivered strong gains over the past month, showing improving short-term performance despite a mixed three-month period.
Broad Sector Mix in Growth Areas
Holdings spread across technology, industrials, health care, and financials provide diversification across several growth-focused sectors.
Negative Factors
High Expense Ratio
The fund’s relatively high fee means more of the investment return goes to costs instead of staying in investors’ pockets.
Several Weak Top Holdings
A number of the largest positions, such as Q2 Holdings and Toast, have shown weak performance this year, which can drag on overall returns.
Small Size and U.S.-Only Focus
With modest assets and almost all exposure in U.S. stocks, the ETF may be less liquid and offers little geographic diversification.

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

TMFS Summary

The Motley Fool Small-Cap Growth ETF (TMFS) is an actively managed fund that focuses on smaller U.S. companies with room to grow, rather than tracking a set index. It spreads your money across many sectors, including technology, industrials, and health care. Well-known holdings include Toast and GXO Logistics. Someone might invest in TMFS to seek higher long-term growth and to diversify beyond large, familiar blue-chip stocks. However, because it owns smaller, fast-growing companies, the share price can be more volatile and may go up and down more sharply than the overall market.
How much will it cost me?The Motley Fool Small-Cap Growth ETF (TMFS) 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, with experts carefully selecting small-cap growth stocks for the portfolio.
What would affect this ETF?The Motley Fool Small-Cap Growth ETF (TMFS) could benefit from economic growth and innovation in sectors like technology and healthcare, which make up a significant portion of its holdings. However, small-cap stocks are often more sensitive to economic downturns, rising interest rates, and market volatility, which could negatively impact the ETF's performance. Additionally, its focus on U.S.-based companies may limit exposure to global growth opportunities.

TMFS Top 10 Holdings

TMFS is leaning hard into U.S. small-cap growth, with a clear tilt toward tech and industrial innovators. SiTime and LiveRamp have been the fund’s main spark plugs lately, both rising on upbeat growth stories despite some valuation worries. StoneX is another steady engine, quietly adding to gains. On the flip side, GXO Logistics and Q2 Holdings have been lagging, acting like a bit of a brake on performance, while Evolv Technologies’ mixed signals underscore the bumpier ride that comes with this concentrated small-cap, U.S.-focused approach.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
StoneX Group5.82%$3.59M$8.98B100.85%
58
Neutral
SiTime Corporation5.04%$3.11M$18.75B262.22%
61
Neutral
GXO Logistics4.27%$2.64M$5.77B21.80%
68
Neutral
Herc Holdings4.07%$2.51M$4.44B7.26%
67
Neutral
Q2 Holdings3.96%$2.44M$2.96B-45.90%
75
Outperform
Evolv Technologies Holdings3.95%$2.43M$1.16B18.13%
48
Neutral
LiveRamp Holdings3.92%$2.42M$2.26B15.28%
75
Outperform
Healthequity3.74%$2.30M$7.36B-12.54%
76
Outperform
frontdoor3.58%$2.21M$4.36B12.83%
72
Outperform
Hexcel3.46%$2.13M$6.77B69.77%
73
Outperform

TMFS Technical Analysis

Technical Analysis Sentiment
Negative
Last Price
Price Trends
50DMA
33.83
Positive
100DMA
34.55
Negative
200DMA
34.67
Negative
Market Momentum
MACD
-0.11
Positive
RSI
46.10
Neutral
STOCH
35.34
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For TMFS, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 34.27, equal to the 50-day MA of 33.83, and equal to the 200-day MA of 34.67, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 46.10 is Neutral, neither overbought nor oversold. The STOCH value of 35.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TMFS.

TMFS Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$59.52M0.85%
65
Neutral
$99.50M0.75%
70
Neutral
$52.61M0.95%
64
Neutral
$17.17M0.49%
67
Neutral
$7.05M0.55%
72
Outperform
$4.12M0.80%
61
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TMFS
Motley Fool Small-Cap Growth ETF
33.83
-0.23
-0.68%
AFSM
First Trust Active Factor Small Cap ETF
MMSC
First Trust Multi-Manager Small Cap Opportunities ETF
ACSG
American Century Small Cap Growth Insights ETF
SAWS
AAM Sawgrass US Small Cap Quality Growth ETF
SGRW
Harbor Active Small Cap Growth 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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