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Motley Fool Next Index ETF (TMFX) Sharpe Ratio: 0.89

ETF · Currency in USD · Last updated Jun 3, 2026

TMFX is a passive ETF by Motley Fool tracking the investment results of the Motley Fool Next Index. TMFX launched on Dec 29, 2021 and has a 0.50% expense ratio.

TMFX's Sharpe Ratio of 0.89 indicates that for each unit of volatility, it generates 0.89 units of excess return above the risk-free rate. The ratio is calculated using historical daily returns over the past 12 months (as of Jun 3, 2026).

Sharpe uses total volatility (standard deviation) which includes both upside and downside price movements, making it useful for comparing risk-adjusted returns across different assets.

TMFX Sharpe Ratio Rank

TMFX Sharpe Ratio Rank: 25.025
Below Average

TMFX ranks above 25.0% of all investments in our database based on Sharpe Ratio over the past 12 months, indicating below-average returns relative to volatility. Securities are ranked from 0 (worst) to 100 (best).

What moves the rank

  • Strong returns with low total volatility → Higher rank
  • High volatility (both upside and downside) → Lower rank
  • Consistent returns → Higher rank than volatile returns of same magnitude
  • Sharp drawdowns increase volatility → Lower rank

What you can do with this information

  • Returns may not adequately compensate for volatility taken
  • Consider smaller allocation given below-average risk-adjusted profile
  • Explore higher-ranked investments with better consistency
  • Assess whether the volatility profile aligns with your portfolio goals

TMFX Sharpe Ratio Market Positioning

The chart shows TMFX's Sharpe Ratio relative to all ETFs on our platform, with color zones indicating percentile rankings. Higher ratios indicate better risk-adjusted returns.

  • Red zone (bottom 25%): 0.90 or lower
  • Yellow zone (middle 50%): 0.90 to 2.51
  • Green zone (top 25%): 2.51 or higher
  • Top 1%: 7.78+
  • Median: 1.77 — half of all investments score higher

How it compares to other similar ETFs

The table compares Motley Fool Next Index ETF's Sharpe Ratio with other ETFs in the Mid Cap Growth Equities category across multiple time periods, showing how TMFX's risk-adjusted performance compares to similar funds.

Data shows 1-, 5-, and 10-year periods, plus each fund's all-time average, as of Jun 3, 2026.

SymbolName1Y Sharpe Ratio5Y Sharpe Ratio10Y Sharpe RatioAll Time Sharpe Ratio
TEKXSPDR Galaxy Transformative Tech Accelerators ETF4.55
FCUSPinnacle Focused Opportunities ETF2.84
KOMPSPDR S&P Kensho New Economies Composite ETF2.27
SCHMSchwab US Mid-Cap ETF2.19
XMMOInvesco S&P MidCap Momentum ETF2.01
FADFirst Trust Multi Cap Growth AlphaDEX Fund1.94
JHMMJohn Hancock Multifactor Mid Cap ETF1.88
MDYGSPDR S&P 400 Mid Cap Growth ETF1.84
IJKiShares S&P MidCap 400 Growth ETF1.84
BOUTInnovator IBD Breakout Opportunities ETF1.74
TMFXMotley Fool Next Index ETF0.89

S&P 500 Index

How to choose period

Historical Sharpe Ratio

The chart shows TMFX's rolling Sharpe ratio over time compared to your chosen benchmark. Rising trends indicate improving returns relative to total volatility, while declining trends may signal deteriorating risk-adjusted performance or increased volatility. Use multiple timeframes to distinguish short-term fluctuations from long-term patterns.

Identify market cycles by observing when TMFX consistently outperforms (line above benchmark), underperforms (below benchmark), or aligns with the benchmark.

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Sharpe Ratio Calculator

How does TMFX fit in your portfolio?

Add your other holdings to see your portfolio's Sharpe Ratio and find out.

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