TMFM vs. TMFS

Last updated Jul 14, 2026

TMFM (Motley Fool Mid-Cap Growth ETF) and TMFS (Motley Fool Small-Cap Growth ETF) are both exchange-traded funds - TMFM is a Mid Cap Growth Equities fund actively managed by Motley Fool, while TMFS is a Small Cap Growth Equities fund actively managed by Motley Fool. Both are actively managed. Over the past 3 years, TMFM returned 2.09%/yr vs 6.92%/yr for TMFS. Their correlation of 0.89 suggests significant overlap in exposure. Both charge a 0.85% expense ratio.

Performance

TMFM vs. TMFS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Motley Fool Mid-Cap Growth ETF (TMFM) 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, TMFM achieves a -6.90% return, which is significantly lower than TMFS's 2.17% return.

TMFM

• 1D: 0.02%
• 1M: 2.46%
• 6M: -10.09%
• YTD: -6.90%
• 1Y: -16.65%
• 3Y*: 2.09%
• 5Y*: —
• 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)

TMFM vs. TMFS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
TMFM Motley Fool Mid-Cap Growth ETF	-6.90%	-8.98%	17.54%	21.81%	-27.36%	1.91%
TMFS Motley Fool Small-Cap Growth ETF	2.17%	-1.59%	15.41%	25.40%	-33.15%	4.11%

Correlation

The correlation between TMFM and TMFS is 0.80, 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	0.80
Correlation (3Y) Calculated over the trailing 3-year period	0.86
Correlation (All Time) Calculated using the full available price history since Dec 13, 2021	0.89

The correlation between TMFM and TMFS has been stable across timeframes, ranging from 0.80 to 0.89 - a consistent structural relationship.

TMFM vs. TMFS - Sectors Allocation Comparison

Sectors	TMFM	TMFS
Technology	31.7%	24.4%
Healthcare	24.2%	20.7%
Industrials	20.2%	23.8%
Financial Services	13.6%	13.2%
Real Estate	4.6%	5.5%
Consumer Cyclical	3.4%	6.7%
Consumer Defensive	2.3%	0.0%
Basic Materials	-	2.5%
Communication Services	-	-
Energy	-	3.1%
Utilities	-	-

Return for Risk

TMFM vs. TMFS — Risk / Return Rank

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

TMFM

TMFM Risk / Return Rank: 3
TMFM Sharpe Ratio Rank: 2
TMFM Sortino Ratio Rank: 3
TMFM Omega Ratio Rank: 3
TMFM Calmar Ratio Rank: 4
TMFM Martin Ratio Rank: 4

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.

TMFM vs. TMFS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Motley Fool Mid-Cap Growth ETF (TMFM) 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.

	TMFM	TMFS	Difference
Sharpe ratio: Return per unit of total volatility	-0.88	0.03	-0.91
Sortino ratio: Return per unit of downside risk	-1.22	0.20	-1.42
Omega ratio: Gain probability vs. loss probability	0.87	1.02	-0.15
Calmar ratio: Return relative to maximum drawdown	-0.63	0.04	-0.67
Martin ratio: Return relative to average drawdown	-1.09	0.11	-1.20

TMFM vs. TMFS - Sharpe Ratio Comparison

The current TMFM Sharpe Ratio is -0.88, which is lower than the TMFS Sharpe Ratio of 0.03. The chart below compares the historical Sharpe Ratios of TMFM 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

TMFM vs. TMFS - Drawdown Comparison

The maximum TMFM drawdown since its inception was -31.75%, smaller than the maximum TMFS drawdown of -48.79%. Use the drawdown chart below to compare losses from any high point for TMFM and TMFS.

Drawdown Indicators

	TMFM	TMFS	Difference
Max Drawdown Largest peak-to-trough decline	-31.75%	-48.79%	+17.04%
Max Drawdown (1Y) Largest decline over 1 year	-26.59%	-15.73%	-10.86%
Max Drawdown (3Y) Largest decline over 3 years	-31.75%	-27.05%	-4.70%
Max Drawdown (5Y) Largest decline over 5 years	—	-45.68%	—
Current Drawdown Current decline from peak	-24.24%	-17.22%	-7.02%
Average Drawdown Average peak-to-trough decline	-16.05%	-19.45%	+3.40%
Ulcer Index Depth and duration of drawdowns from previous peaks	15.34%	5.73%	+9.61%

Volatility

TMFM vs. TMFS - Volatility Comparison

Motley Fool Mid-Cap Growth ETF (TMFM) and Motley Fool Small-Cap Growth ETF (TMFS) have volatilities of 5.37% and 5.27%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TMFM	TMFS	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.37%	5.27%	+0.10%
Volatility (6M) Calculated over the trailing 6-month period	15.91%	14.12%	+1.79%
Volatility (1Y) Calculated over the trailing 1-year period	19.13%	19.90%	-0.77%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.57%	23.05%	-2.48%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.57%	25.44%	-4.87%

TMFM vs. TMFS - Expense Ratio Comparison

Both TMFM and TMFS have an expense ratio of 0.85%.

Dividends

TMFM vs. TMFS - Dividend Comparison

TMFM's dividend yield for the trailing twelve months is around 0.07%, while TMFS has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
TMFM Motley Fool Mid-Cap Growth ETF	0.07%	0.06%	16.27%	2.55%	0.00%	0.00%	0.00%	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 TMFM and TMFS in my portfolio?

TMFM and TMFS have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TMFM or TMFS?

TMFM has higher volatility (5.37%) compared to TMFS (5.27%). In terms of maximum drawdown, TMFM dropped -31.75% vs TMFS's -48.79%.

Which ETF is better, TMFM or TMFS?

On 3-year performance, TMFS leads with 6.92% vs 2.09% for TMFM. Both ETFs have the same 0.85% expense ratio. 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, TMFM or TMFS?

Over the 3-year period, TMFS has performed better with a 6.92% return vs 2.09%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TMFM or TMFS?

TMFM and TMFS have the same expense ratio: 0.85% per year.

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

TMFM has the higher dividend yield at 0.07%, compared with 0.00% for TMFS.

What is the main difference between TMFM and TMFS?

TMFM is categorized as Mid Cap Growth Equities, while TMFS is Small Cap Growth Equities.

Which has better risk-adjusted returns?

TMFS currently has the higher Sharpe Ratio (0.03 vs -0.88), 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.