TMFX - ETF AI Analysis

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Motley Fool Next Index ETF (TMFX)

Rating:70Neutral

Price Target:―

TMFX, the Motley Fool Next Index ETF, has a solid overall rating driven mainly by high-quality holdings like Comfort Systems USA (FIX) and Westinghouse Air Brake Technologies (WAB), which show strong financial performance, positive earnings outlooks, and supportive technical trends despite somewhat rich valuations. Other key positions such as HEICO (HEI), EQT, and Interactive Brokers (IBKR) further support the fund’s quality through strong growth and earnings, though several holdings, including Ubiquiti (UI), EMCOR (EME), and Live Nation (LYV), face issues like bearish technical signals, high leverage, or overvaluation that slightly weigh on the rating. The main risk factor is that many top holdings are described as expensive or overvalued and some show negative technical momentum, which could increase volatility if market sentiment turns.

Positive Factors

Broad Sector Diversification

The fund spreads its investments across many sectors, which can help reduce the impact if any one industry struggles.

Generally Positive Recent Performance

The ETF has shown steady gains over the past month, three months, and year-to-date, indicating recent upward momentum.

Several Strong Top Holdings

Some of the largest positions, such as HEICO, Westinghouse Air Brake Technologies, Comfort Systems, and Interactive Brokers, have delivered strong year-to-date performance that supports the fund’s returns.

Negative Factors

Moderately High Expense Ratio

The fund’s expense ratio is on the higher side for an ETF, which means more of the returns go toward fees instead of staying with investors.

Heavy U.S. Concentration

With almost all assets invested in U.S. companies, the ETF offers little geographic diversification and is highly tied to the U.S. market.

Mixed Performance Among Top Holdings

Several key holdings, including Live Nation Entertainment, EQT, SoFi, and MongoDB, have shown weak year-to-date performance, which can drag on overall results.

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

AUM31.70M

RegionNorth America

Expense Ratio0.50%

Beta1.09

IssuerMotley Fool

Inception DateDec 29, 2021

Dividend Yield0.05%

Asset ClassEquity

Index TrackedMotley Fool Next Index - Benchmark TR Gross

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume4,671

30 Day Avg. Volume5,234

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

25.76

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering195

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

TMFX Summary

TMFX is the Motley Fool Next Index ETF, which follows the Motley Fool Next Index and focuses on mid-size and smaller U.S. companies rather than the biggest household names. It invests across many sectors, with a tilt toward technology, industrials, and consumer companies. Well-known holdings include Sysco and Live Nation Entertainment, along with newer names like SoFi and MongoDB. Someone might invest in TMFX to seek long-term growth and diversify beyond large-cap stocks by owning many potential “up-and-coming” businesses. A key risk is that smaller, growth-focused stocks 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 Next Index ETF (TMFX) 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 identifying high-growth and innovative companies rather than tracking a broad index. Active management typically involves more research and strategy, which increases costs.

What would affect this ETF?The TMFX ETF, which focuses on mid-cap and small-cap companies in the U.S., could benefit from growth in innovative sectors like technology and health care, as these industries often drive market disruption and long-term expansion. However, its exposure to consumer cyclical and financial sectors may face challenges during economic downturns or periods of high interest rates, which can impact consumer spending and borrowing. Additionally, regulatory changes or shifts in market sentiment toward smaller companies could influence the ETF's performance positively or negatively.

TMFX Top 10 Holdings

TMFX leans into U.S. mid- and small-cap growth, with industrial and tech names setting the pace. Comfort Systems and Westinghouse Air Brake are doing the heavy lifting lately, with HEICO and Interactive Brokers also rising and helping the fund’s overall tone. On the other side, SoFi and Live Nation are dragging a bit, while MongoDB’s mixed pattern adds some bumpiness from the tech sleeve. With no single mega-cap in charge, performance is driven by a diversified cast of U.S. innovators rather than one or two giants.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
FIX	Comfort Systems	2.15%	$679.91K	$47.19B	241.99%	80 Outperform
WAB	Westinghouse Air Brake Technologies	2.10%	$665.69K	$43.78B	36.06%	79 Outperform
SYY	Sysco	2.08%	$660.21K	$43.37B	27.37%	71 Outperform
UI	Ubiquiti Networks	2.07%	$655.95K	$43.58B	111.02%	60 Neutral
HEI	HEICO	1.92%	$609.27K	$39.65B	50.56%	77 Outperform
LYV	Live Nation Entertainment	1.72%	$544.06K	$36.75B	2.93%	69 Neutral
EME	EMCOR Group	1.70%	$538.66K	$35.85B	87.86%	73 Outperform
EQT	EQT	1.69%	$534.12K	$36.63B	9.86%	76 Outperform
COHR	Coherent Corp	1.64%	$518.86K	$40.73B	150.26%	66 Neutral
IBKR	Interactive Brokers	1.57%	$499.07K	$33.29B	27.71%	75 Outperform

TMFX Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

21.83

Negative

100DMA

21.62

Negative

200DMA

21.05

Positive

Market Momentum

MACD

-0.16

Positive

RSI

43.86

Neutral

STOCH

44.64

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For TMFX, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 21.76, equal to the 50-day MA of 21.83, and equal to the 200-day MA of 21.05, indicating a neutral trend. The MACD of -0.16 indicates Positive momentum. The RSI at 43.86 is Neutral, neither overbought nor oversold. The STOCH value of 44.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TMFX.

TMFX Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
TMFX	―	―	$31.70M	0.50%	―
OASC	―	―	$72.72M	0.69%	―
FSCS	―	―	$61.87M	0.60%	―
SMOX	―	―	$55.80M	0.75%	―
ASCE	―	―	$45.65M	0.38%	―
HSMV	―	―	$30.45M	0.80%	―

Performance Comparison

TMFX

Motley Fool Next Index ETF

21.36

0.47

2.25%

OASC

OneAscent Small Cap Core ETF

―

FSCS

First Trust Smid Capital Strength Etf

―

SMOX

Horizon Small/Mid Cap Core Equity ETF

―

ASCE

Allspring SMID Core ETF

―

HSMV

First Trust Horizon Managed Volatility Small/Mid 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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