TMFX vs. TMFS

Last updated Jun 4, 2026

TMFX (Motley Fool Next Index ETF) and TMFS (Motley Fool Small-Cap Growth ETF) are both exchange-traded funds - TMFX is a Mid Cap Growth Equities fund tracking the Motley Fool Next Index, while TMFS is a Small Cap Growth Equities fund actively managed by Motley Fool. TMFX is passively managed, while TMFS is actively managed. Over the past 3 years, TMFX returned 13.61%/yr vs 6.32%/yr for TMFS. Their correlation of 0.90 suggests significant overlap in exposure. TMFX charges 0.50%/yr vs 0.85%/yr for TMFS.

Performance

TMFX vs. TMFS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Motley Fool Next Index ETF (TMFX) 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, TMFX achieves a 4.09% return, which is significantly higher than TMFS's -4.69% return.

TMFX

• 1D: -0.92%
• 1M: 5.95%
• YTD: 4.09%
• 6M: 4.52%
• 1Y: 12.73%
• 3Y*: 13.61%
• 5Y*: —
• 10Y*: —

TMFS

• 1D: -1.11%
• 1M: -3.92%
• YTD: -4.69%
• 6M: -6.04%
• 1Y: -3.97%
• 3Y*: 6.32%
• 5Y*: -1.68%
• 10Y*: —

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

TMFX vs. TMFS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
TMFX Motley Fool Next Index ETF	4.09%	10.41%	16.04%	17.95%	-28.16%
TMFS Motley Fool Small-Cap Growth ETF	-4.69%	-1.59%	15.41%	25.40%	-33.15%

Correlation

The correlation between TMFX and TMFS is 0.83, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.83
Correlation (3Y) Calculated over the trailing 3-year period	0.87
Correlation (All Time) Calculated using the full available price history since Jan 3, 2022	0.90

The correlation between TMFX and TMFS has been stable across timeframes, ranging from 0.83 to 0.90 - a consistent structural relationship.

TMFX vs. TMFS - Sectors Allocation Comparison

Sectors	TMFX	TMFS
Technology	28.8%	26.6%
Healthcare	17.6%	20.9%
Consumer Cyclical	16.9%	5.8%
Industrials	14.1%	23.8%
Financial Services	10.5%	13.1%
Communication Services	5.6%	-
Consumer Defensive	2.7%	0.0%
Real Estate	2.1%	5.2%
Basic Materials	1.6%	2.4%
Energy	0.0%	2.4%
Utilities	-	-

Return for Risk

TMFX vs. TMFS — Risk / Return Rank

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

TMFX

TMFX Risk / Return Rank: 21
TMFX Sharpe Ratio Rank: 21
TMFX Sortino Ratio Rank: 21
TMFX Omega Ratio Rank: 20
TMFX Calmar Ratio Rank: 21
TMFX Martin Ratio Rank: 23

TMFS

TMFS Risk / Return Rank: 6
TMFS Sharpe Ratio Rank: 7
TMFS Sortino Ratio Rank: 6
TMFS Omega Ratio Rank: 6
TMFS Calmar Ratio Rank: 6
TMFS Martin Ratio Rank: 6

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.

TMFX vs. TMFS - Risk-Adjusted Trends Comparison

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

	TMFX	TMFS	Difference
Sharpe ratio: Return per unit of total volatility	0.76	-0.20	+0.96
Sortino ratio: Return per unit of downside risk	1.18	-0.16	+1.34
Omega ratio: Gain probability vs. loss probability	1.13	0.98	+0.15
Calmar ratio: Return relative to maximum drawdown	0.92	-0.25	+1.17
Martin ratio: Return relative to average drawdown	2.93	-0.70	+3.63
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TMFX vs. TMFS - Sharpe Ratio Comparison

The current TMFX Sharpe Ratio is 0.76, which is higher than the TMFS Sharpe Ratio of -0.20. The chart below compares the historical Sharpe Ratios of TMFX 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.

Sharpe Ratios by Period

	TMFX	TMFS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.76	-0.20	+0.96
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	-0.07	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.12	0.32	-0.20

Drawdowns

TMFX vs. TMFS - Drawdown Comparison

The maximum TMFX drawdown since its inception was -34.30%, smaller than the maximum TMFS drawdown of -48.79%. Use the drawdown chart below to compare losses from any high point for TMFX and TMFS.

Drawdown Indicators

	TMFX	TMFS	Difference
Max Drawdown Largest peak-to-trough decline	-34.30%	-48.79%	+14.49%
Max Drawdown (1Y) Largest decline over 1 year	-13.95%	-15.73%	+1.78%
Max Drawdown (3Y) Largest decline over 3 years	-24.05%	-27.05%	+3.00%
Max Drawdown (5Y) Largest decline over 5 years	—	-45.68%	—
Current Drawdown Current decline from peak	-1.78%	-22.78%	+21.00%
Average Drawdown Average peak-to-trough decline	-14.38%	-19.47%	+5.09%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.35%	5.68%	-1.33%

Volatility

TMFX vs. TMFS - Volatility Comparison

The current volatility for Motley Fool Next Index ETF (TMFX) is 4.11%, while Motley Fool Small-Cap Growth ETF (TMFS) has a volatility of 5.23%. This indicates that TMFX experiences smaller price fluctuations and is considered to be less risky than TMFS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TMFX	TMFS	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.11%	5.23%	-1.12%
Volatility (6M) Calculated over the trailing 6-month period	12.33%	13.98%	-1.65%
Volatility (1Y) Calculated over the trailing 1-year period	16.86%	19.62%	-2.76%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.39%	22.93%	+0.46%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.39%	25.52%	-2.13%

TMFX vs. TMFS - Expense Ratio Comparison

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

Dividends

TMFX vs. TMFS - Dividend Comparison

TMFX's dividend yield for the trailing twelve months is around 0.05%, while TMFS has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
TMFS Motley Fool Small-Cap Growth ETF	0.00%	0.00%	0.00%	0.00%	0.34%	2.37%	5.57%	2.65%
TMFX Motley Fool Next Index ETF	0.05%	0.05%	0.06%	0.16%	0.22%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both TMFX and TMFS in my portfolio?

TMFX and TMFS have a correlation of 0.83, 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 TMFS?

TMFS has higher volatility (5.23%) compared to TMFX (4.11%). In terms of maximum drawdown, TMFX dropped -34.30% vs TMFS's -48.79%.

Which ETF is better, TMFX or TMFS?

On 3-year performance, TMFX leads with 13.61% vs 6.32% for TMFS. On fees, TMFX is cheaper at 0.50% per year. On volatility, TMFX has been the lower-risk option at 4.11%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TMFX or TMFS?

Over the 3-year period, TMFX has performed better with a 13.61% return vs 6.32%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TMFX or TMFS?

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

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

TMFX has the higher dividend yield at 0.05%, compared with 0.00% for TMFS.

What is the main difference between TMFX and TMFS?

TMFX is categorized as Mid Cap Growth Equities, while TMFS is Small Cap Growth Equities. Their fees differ too: 0.50% for TMFX and 0.85% for TMFS.

Which has better risk-adjusted returns?

TMFX currently has the higher Sharpe Ratio (0.76 vs -0.20), 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.