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TMFX - ETF AI Analysis

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TMFX

Motley Fool Next Index ETF (TMFX)

Rating:69Neutral
Price Target:
TMFX, the Motley Fool Next Index ETF, has a solid overall rating driven mainly by strong, growing companies like Comfort Systems USA (FIX) and Westinghouse Air Brake Technologies (WAB), which show robust financial performance and positive outlooks. Other holdings such as HEICO (HEI) and Interactive Brokers (IBKR) also support the fund’s quality with strong results, though many top positions share a common concern of high valuations and, in some cases, bearish technical signals. This creates a key risk for investors: the fund is tilted toward companies that are performing well but may be expensive and more sensitive to market pullbacks.
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)

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 innovators, with a clear tilt toward technology and industrials. Comfort Systems and EMCOR, both tied to infrastructure and construction services, have been strong longer-term engines but recently hit a soft patch, briefly tapping the brakes on performance. Ubiquiti and Coherent are among the tech names still rising, helping keep the fund’s growth story intact. On the weaker side, HEICO and Interactive Brokers have been lagging, reminding investors that this concentrated, U.S.-focused growth hunt can be bumpy even when the long-term narrative is compelling.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Ubiquiti Networks2.41%$722.85K$50.84B198.49%
60
Neutral
Comfort Systems2.37%$710.58K$50.44B359.34%
80
Outperform
Westinghouse Air Brake Technologies2.15%$644.05K$43.32B57.37%
79
Outperform
EQT2.08%$624.54K$37.71B27.18%
76
Outperform
Sysco2.02%$606.83K$35.08B5.44%
71
Outperform
Coherent Corp1.95%$584.14K$47.47B392.74%
66
Neutral
Live Nation Entertainment1.76%$527.13K$37.21B34.30%
69
Neutral
HEICO1.69%$505.75K$33.28B17.06%
77
Outperform
EMCOR Group1.67%$499.70K$33.74B113.84%
73
Outperform
Interactive Brokers1.51%$452.21K$30.58B90.23%
75
Outperform

TMFX Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price
Price Trends
50DMA
21.03
Negative
100DMA
21.32
Negative
200DMA
21.26
Negative
Market Momentum
MACD
-0.32
Negative
RSI
46.66
Neutral
STOCH
69.64
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For TMFX, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 20.26, equal to the 50-day MA of 21.03, and equal to the 200-day MA of 21.26, indicating a neutral trend. The MACD of -0.32 indicates Negative momentum. The RSI at 46.66 is Neutral, neither overbought nor oversold. The STOCH value of 69.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TMFX.

TMFX Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$29.68M0.50%
69
Neutral
$73.11M0.69%
69
Neutral
$56.47M0.60%
73
Outperform
$55.08M0.38%
72
Outperform
$54.93M0.75%
73
Outperform
$29.08M0.80%
71
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TMFX
Motley Fool Next Index ETF
20.15
2.50
14.16%
OASC
OneAscent Small Cap Core ETF
FSCS
First Trust Smid Capital Strength Etf
ASCE
Allspring SMID Core ETF
SMOX
Horizon Small/Mid Cap Core Equity 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.
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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