GARP vs. TMFS

Last updated Jul 14, 2026

GARP (iShares MSCI USA Quality GARP ETF) and TMFS (Motley Fool Small-Cap Growth ETF) are both exchange-traded funds - GARP is a Large Cap Growth Equities fund tracking the MSCI USA Quality GARP Select Index, while TMFS is a Small Cap Growth Equities fund actively managed by Motley Fool. GARP is passively managed, while TMFS is actively managed. Over the past 5 years, GARP returned 17.98%/yr vs -1.05%/yr for TMFS. A 0.72 correlation means they provide meaningful diversification when combined. GARP charges 0.15%/yr vs 0.85%/yr for TMFS.

Performance

GARP vs. TMFS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI USA Quality GARP ETF (GARP) and Motley Fool Small-Cap Growth ETF (TMFS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, GARP achieves a 18.49% return, which is significantly higher than TMFS's 2.17% return.

GARP

• 1D: -1.09%
• 1M: 1.30%
• 6M: 15.03%
• YTD: 18.49%
• 1Y: 33.27%
• 3Y*: 29.83%
• 5Y*: 17.98%
• 10Y*: —

TMFS

• 1D: -0.52%
• 1M: 2.45%
• 6M: -1.86%
• YTD: 2.17%
• 1Y: 0.64%
• 3Y*: 6.92%
• 5Y*: -1.05%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

GARP vs. TMFS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
GARP iShares MSCI USA Quality GARP ETF	18.49%	21.49%	37.42%	42.86%	-26.75%	27.99%	26.51%
TMFS Motley Fool Small-Cap Growth ETF	2.17%	-1.59%	15.41%	25.40%	-33.15%	-2.38%	52.40%

Correlation

The correlation between GARP and TMFS is 0.59, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.59
Correlation (3Y) Calculated over the trailing 3-year period	0.65
Correlation (5Y) Calculated over the trailing 5-year period	0.74
Correlation (All Time) Calculated using the full available price history since Jan 16, 2020	0.72

The correlation between GARP and TMFS shifts across timeframes, from 0.59 (1 year) to 0.74 (5 years), reflecting how their relationship changes across market environments.

GARP vs. TMFS - Sectors Allocation Comparison

Sectors	GARP	TMFS
Technology	54.7%	24.4%
Communication Services	11.4%	-
Consumer Cyclical	8.8%	6.7%
Financial Services	7.7%	13.2%
Industrials	6.7%	23.8%
Healthcare	5.5%	20.7%
Energy	2.8%	3.1%
Utilities	1.2%	-
Basic Materials	1.1%	2.5%
Real Estate	0.4%	5.5%
Consumer Defensive	-	0.0%

Return for Risk

GARP vs. TMFS — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

GARP

GARP Risk / Return Rank: 63
GARP Sharpe Ratio Rank: 66
GARP Sortino Ratio Rank: 62
GARP Omega Ratio Rank: 61
GARP Calmar Ratio Rank: 61
GARP Martin Ratio Rank: 65

TMFS

TMFS Risk / Return Rank: 10
TMFS Sharpe Ratio Rank: 10
TMFS Sortino Ratio Rank: 10
TMFS Omega Ratio Rank: 9
TMFS Calmar Ratio Rank: 10
TMFS Martin Ratio Rank: 10

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

GARP vs. TMFS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI USA Quality GARP ETF (GARP) and Motley Fool Small-Cap Growth ETF (TMFS). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	GARP	TMFS	Difference
Sharpe ratio: Return per unit of total volatility	1.71	0.03	+1.68
Sortino ratio: Return per unit of downside risk	2.30	0.20	+2.10
Omega ratio: Gain probability vs. loss probability	1.29	1.02	+0.27
Calmar ratio: Return relative to maximum drawdown	2.44	0.04	+2.40
Martin ratio: Return relative to average drawdown	9.29	0.11	+9.18

GARP vs. TMFS - Sharpe Ratio Comparison

The current GARP Sharpe Ratio is 1.71, which is higher than the TMFS Sharpe Ratio of 0.03. The chart below compares the historical Sharpe Ratios of GARP and TMFS, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

GARP vs. TMFS - Drawdown Comparison

The maximum GARP drawdown since its inception was -31.34%, smaller than the maximum TMFS drawdown of -48.79%. Use the drawdown chart below to compare losses from any high point for GARP and TMFS.

Drawdown Indicators

	GARP	TMFS	Difference
Max Drawdown Largest peak-to-trough decline	-31.34%	-48.79%	+17.45%
Max Drawdown (1Y) Largest decline over 1 year	-13.69%	-15.73%	+2.04%
Max Drawdown (3Y) Largest decline over 3 years	-23.73%	-27.05%	+3.32%
Max Drawdown (5Y) Largest decline over 5 years	-30.61%	-45.68%	+15.07%
Current Drawdown Current decline from peak	-3.03%	-17.22%	+14.19%
Average Drawdown Average peak-to-trough decline	-7.29%	-19.45%	+12.16%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.59%	5.73%	-2.14%

Volatility

GARP vs. TMFS - Volatility Comparison

iShares MSCI USA Quality GARP ETF (GARP) has a higher volatility of 7.32% compared to Motley Fool Small-Cap Growth ETF (TMFS) at 5.27%. This indicates that GARP's price experiences larger fluctuations and is considered to be riskier than TMFS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	GARP	TMFS	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.32%	5.27%	+2.05%
Volatility (6M) Calculated over the trailing 6-month period	15.86%	14.12%	+1.74%
Volatility (1Y) Calculated over the trailing 1-year period	19.55%	19.90%	-0.35%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.29%	23.05%	-0.76%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.95%	25.44%	-1.49%

GARP vs. TMFS - Expense Ratio Comparison

GARP has a 0.15% expense ratio, which is lower than TMFS's 0.85% expense ratio.

Dividends

GARP vs. TMFS - Dividend Comparison

GARP's dividend yield for the trailing twelve months is around 0.27%, while TMFS has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
GARP iShares MSCI USA Quality GARP ETF	0.27%	0.31%	0.38%	0.75%	1.85%	0.67%	0.75%	0.00%
TMFS Motley Fool Small-Cap Growth ETF	0.00%	0.00%	0.00%	0.00%	0.34%	2.37%	5.57%	2.65%

Frequently Asked Questions

Can I hold both GARP and TMFS in my portfolio?

GARP and TMFS have a correlation of 0.59, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, GARP or TMFS?

GARP has higher volatility (7.32%) compared to TMFS (5.27%). In terms of maximum drawdown, GARP dropped -31.34% vs TMFS's -48.79%.

Which ETF is better, GARP or TMFS?

On 5-year performance, GARP leads with 17.98% vs -1.05% for TMFS. On fees, GARP is cheaper at 0.15% per year. On volatility, TMFS has been the lower-risk option at 5.27%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, GARP or TMFS?

Over the 5-year period, GARP has performed better with a 17.98% return vs -1.05%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, GARP or TMFS?

GARP is cheaper with a 0.15% expense ratio, compared with 0.85% for TMFS.

Which ETF pays a higher dividend yield, GARP or TMFS?

GARP has the higher dividend yield at 0.27%, compared with 0.00% for TMFS.

What is the main difference between GARP and TMFS?

GARP is categorized as Large Cap Growth Equities, while TMFS is Small Cap Growth Equities. They also come from different issuers: iShares and Motley Fool. Their fees differ too: 0.15% for GARP and 0.85% for TMFS.

Which has better risk-adjusted returns?

GARP currently has the higher Sharpe Ratio (1.71 vs 0.03), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.