TMFX vs. TMFM

Last updated Aug 2, 2026

TMFX (Motley Fool Next Index ETF) and TMFM (Motley Fool Mid-Cap Growth ETF) are both Mid Cap Growth Equities funds from Motley Fool. TMFX is passively managed, while TMFM is actively managed. Over the past 3 years, TMFX returned 12.05%/yr vs 1.83%/yr for TMFM. Their correlation of 0.87 means they have usually moved in the same direction. TMFX charges 0.50%/yr vs 0.85%/yr for TMFM.

Performance

TMFX vs. TMFM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Motley Fool Next Index ETF (TMFX) and Motley Fool Mid-Cap Growth ETF (TMFM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TMFX achieves a 6.98% return, which is significantly higher than TMFM's -5.79% return.

TMFX

• 1D: -0.74%
• 1M: -1.12%
• 6M: 7.46%
• YTD: 6.98%
• 1Y: 12.14%
• 3Y*: 12.05%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 3.17%

TMFM

• 1D: 0.43%
• 1M: -1.09%
• 6M: -2.45%
• YTD: -5.79%
• 1Y: -14.17%
• 3Y*: 1.83%
• 5Y*: —
• 10Y*: —
• ALL TIME*: -2.04%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
TMFM Motley Fool Mid-Cap Growth ETF	$157.21K	$169.51K	$230.30K
TMFX Motley Fool Next Index ETF	$130.19K	$125.62K	$115.15K

TMFX vs. TMFM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
TMFX Motley Fool Next Index ETF	6.98%	10.41%	16.04%	17.95%	-28.16%	-0.65%
TMFM Motley Fool Mid-Cap Growth ETF	-5.79%	-8.98%	17.54%	21.81%	-27.36%	-0.60%

Correlation

The correlation between TMFX and TMFM is 0.80, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.80
Correlation (3Y) Balances recent behavior with more history.	0.83
Correlation (All Time) Calculated using the full available price history since Dec 31, 2021	0.87

The correlation between TMFX and TMFM has been stable across timeframes, ranging from 0.80 to 0.87 - a consistent structural relationship.

Return for Risk

TMFX vs. TMFM — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

TMFX

TMFX Risk / Return Rank: 26
TMFX Sharpe Ratio Rank: 26
TMFX Sortino Ratio Rank: 26
TMFX Omega Ratio Rank: 24
TMFX Calmar Ratio Rank: 25
TMFX Martin Ratio Rank: 29

TMFM

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

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

TMFX vs. TMFM - Risk-Adjusted Trends Comparison

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

	TMFX	TMFM	Difference
Sharpe ratio: Return per unit of total volatility	0.61	-0.80	+1.41
Sortino ratio: Return per unit of downside risk	0.99	-1.10	+2.09
Omega ratio: Gain probability vs. loss probability	1.11	0.88	+0.23
Calmar ratio: Return relative to maximum drawdown	0.76	-0.62	+1.39
Martin ratio: Return relative to average drawdown	2.41	-1.07	+3.48

TMFX vs. TMFM - Sharpe Ratio Comparison

The current TMFX Sharpe Ratio is 0.61, which is higher than the TMFM Sharpe Ratio of -0.80. The chart below compares the historical Sharpe Ratios of TMFX and TMFM, 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

TMFX vs. TMFM - Drawdown Comparison

The maximum TMFX drawdown since its inception was -34.72%, which is greater than TMFM's maximum drawdown of -31.75%. Use the drawdown chart below to compare losses from any high point for TMFX and TMFM.

Drawdown Indicators

	TMFX	TMFM	Difference
Max Drawdown Largest peak-to-trough decline	-34.72%	-31.75%	-2.97%
Max Drawdown (1Y) Largest decline over 1 year	-13.95%	-25.13%	+11.18%
Max Drawdown (3Y) Largest decline over 3 years	-24.05%	-31.75%	+7.70%
Current Drawdown Current decline from peak	-1.51%	-23.34%	+21.83%
Average Drawdown Average peak-to-trough decline	-14.26%	-16.16%	+1.90%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.42%	14.51%	-10.09%

Volatility

TMFX vs. TMFM - Volatility Comparison

The current volatility for Motley Fool Next Index ETF (TMFX) is 4.17%, while Motley Fool Mid-Cap Growth ETF (TMFM) has a volatility of 6.01%. This indicates that TMFX experiences smaller price fluctuations and is considered to be less risky than TMFM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TMFX	TMFM	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.17%	6.01%	-1.84%
Volatility (6M) Calculated over the trailing 6-month period	13.05%	16.23%	-3.18%
Volatility (1Y) Calculated over the trailing 1-year period	17.39%	19.69%	-2.30%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.18%	20.60%	+2.58%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.18%	20.60%	+2.58%

TMFX vs. TMFM - Expense Ratio Comparison

TMFX has a 0.50% expense ratio, which is lower than TMFM's 0.85% expense ratio.

Dividends

TMFX vs. TMFM - Dividend Comparison

TMFX's dividend yield for the trailing twelve months is around 0.05%, less than TMFM's 0.07% yield.

Position	TTM	2025	2024	2023	2022
TMFM Motley Fool Mid-Cap Growth ETF	0.07%	0.06%	16.27%	2.55%	0.00%
TMFX Motley Fool Next Index ETF	0.05%	0.05%	0.06%	0.16%	0.22%

Frequently Asked Questions

Can I hold both TMFX and TMFM in my portfolio?

TMFX and TMFM 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, TMFX or TMFM?

TMFM has higher volatility (6.01%) compared to TMFX (4.17%). In terms of maximum drawdown, TMFX dropped -34.72% vs TMFM's -31.75%.

Which ETF is better, TMFX or TMFM?

On 3-year performance, TMFX leads with 12.05% vs 1.83% for TMFM. On fees, TMFX is cheaper at 0.50% per year. On volatility, TMFX has been the lower-risk option at 4.17%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TMFX or TMFM?

Over the 3-year period, TMFX has performed better with a 12.05% return vs 1.83%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TMFX or TMFM?

TMFX is cheaper with a 0.50% expense ratio, compared with 0.85% for TMFM.

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

TMFM has the higher dividend yield at 0.07%, compared with 0.05% for TMFX.

What is the main difference between TMFX and TMFM?

Their fees differ too: 0.50% for TMFX and 0.85% for TMFM.

Which has better risk-adjusted returns?

TMFX currently has the higher Sharpe Ratio (0.61 vs -0.80), 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.