TMFS - ETF AI Analysis

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Motley Fool Small-Cap Growth ETF (TMFS)

Rating:65Neutral

Price Target:―

TMFS, the Motley Fool Small-Cap Growth ETF, has a solid overall rating driven mainly by strong growth names like Penumbra, UFP Technologies, Toast, and Hexcel, which benefit from robust revenue trends, healthy balance sheets, and positive earnings commentary. These leaders are partly offset by weaker spots such as Alphatec Holdings and StoneX Group, where profitability, cash flow, and leverage concerns weigh on their appeal. The main risk for the fund is that many holdings trade at rich valuations and show signs of being overbought, which could make the ETF more sensitive to market pullbacks.

Positive Factors

Strong Top Holdings

Several of the largest positions, such as StoneX Group, Penumbra, Hexcel, QXO, and UFP Technologies, have shown strong gains this year, helping support the fund’s overall results.

Growth-Focused Small-Cap Exposure

The ETF targets smaller, growth-oriented companies, which can offer higher long-term return potential compared with more mature large-cap stocks.

Sector Diversification Across the Economy

Holdings are spread across multiple sectors like industrials, technology, health care, and financials, which helps reduce the impact if any one industry struggles.

Negative Factors

High Expense Ratio

The fund’s fee is relatively high for an ETF, which can eat into investor returns over time.

Concentration in a Few Names

The top 10 holdings make up a sizable portion of the portfolio, so weakness in just a few stocks could noticeably hurt performance.

Limited Geographic Diversification

With almost all assets invested in U.S. companies, the fund offers little protection if the U.S. market or economy faces a downturn.

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

AUM69.81M

RegionNorth America

Expense Ratio0.85%

Beta1.00

IssuerMotley Fool

Inception DateOct 23, 2018

Dividend YieldN/A

Asset ClassEquity

Index TrackedNo Underlying Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume7,385

30 Day Avg. Volume6,980

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

45.31

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering37

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

TMFS Summary

The Motley Fool Small-Cap Growth ETF (TMFS) focuses on smaller U.S. companies that the managers believe have strong growth potential, rather than tracking a set index. It holds a mix of businesses in areas like technology, health care, and industrials, including names such as Toast and GXO Logistics. Someone might invest in TMFS to seek higher long-term growth and to diversify beyond large, well-known companies. However, small-cap growth stocks can be very volatile, so the ETF’s price can rise and fall sharply, especially during market downturns.

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 innovators, with a clear tilt toward industrials, health care, and tech. Medical names like Penumbra and UFP Technologies have been rising and now act as key engines for the fund, while QXO and Hexcel add momentum from the industrial side. StoneX is also pulling its weight with steady gains. On the flip side, Toast and Alphatec have been lagging, occasionally throwing sand in the fund’s gears. Overall, performance is being driven by a handful of fast-moving, domestically focused growth stories.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
SNEX	StoneX Group	7.21%	$5.05M	$6.59B	59.05%	58 Neutral
HRI	Herc Holdings	5.24%	$3.67M	$6.03B	-14.10%	67 Neutral
GXO	GXO Logistics	4.72%	$3.30M	$6.64B	37.04%	68 Neutral
HXL	Hexcel	4.35%	$3.05M	$6.92B	32.60%	73 Outperform
PEN	Penumbra	3.96%	$2.78M	$13.30B	26.96%	78 Outperform
ATEC	Alphatec Holdings	3.92%	$2.74M	$2.06B	26.50%	57 Neutral
TOST	Toast Inc	3.80%	$2.66M	$17.33B	-27.92%	73 Outperform
UFPT	Ufp Technologies	3.73%	$2.61M	$2.06B	5.97%	75 Outperform
QXO	QXO Inc	3.63%	$2.54M	$16.39B	73.96%	66 Neutral
LOB	Live Oak Bancshares	3.50%	$2.45M	$1.88B	19.97%	72 Outperform

TMFS Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

35.67

Positive

100DMA

34.90

Positive

200DMA

34.84

Positive

Market Momentum

MACD

0.01

Negative

RSI

56.53

Neutral

STOCH

82.98

Negative

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For TMFS, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 35.66, equal to the 50-day MA of 35.67, and equal to the 200-day MA of 34.84, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 56.53 is Neutral, neither overbought nor oversold. The STOCH value of 82.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TMFS.

TMFS Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
TMFS	―	―	$69.81M	0.85%	―
AFSM	―	―	$82.46M	0.75%	―
SYZ	―	―	$62.57M	0.74%	―
MMSC	―	―	$43.84M	0.95%	―
ACSG	―	―	$8.05M	0.49%	―
SAWS	―	―	$6.88M	0.55%	―

Performance Comparison

TMFS

Motley Fool Small-Cap Growth ETF

36.14

-0.36

-0.99%

AFSM

First Trust Active Factor Small Cap ETF

―

SYZ

Lazard US Systematic Small Cap Equity 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

―

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.

Disclaimer

This 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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