TMFX vs. VGT
TMFX (Motley Fool Next Index ETF) and VGT (Vanguard Information Technology ETF) are both exchange-traded funds - TMFX is a Mid Cap Growth Equities fund tracking the Motley Fool Next Index, while VGT is a Technology Equities fund tracking the MSCI USA IMI Information Technology 25/50 Index. Both are passively managed. Over the past 3 years, TMFX returned 12.55%/yr vs 31.77%/yr for VGT. A 0.79 correlation means they provide meaningful diversification when combined. TMFX charges 0.50%/yr vs 0.09%/yr for VGT.
Performance
TMFX vs. VGT - Performance Comparison
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Returns By Period
In the year-to-date period, TMFX achieves a 2.16% return, which is significantly lower than VGT's 28.03% return.
TMFX
- 1D
- -0.61%
- 1M
- 0.77%
- YTD
- 2.16%
- 6M
- -0.33%
- 1Y
- 11.91%
- 3Y*
- 12.55%
- 5Y*
- —
- 10Y*
- —
VGT
- 1D
- 0.39%
- 1M
- 4.11%
- YTD
- 28.03%
- 6M
- 26.85%
- 1Y
- 54.06%
- 3Y*
- 31.77%
- 5Y*
- 20.58%
- 10Y*
- 25.96%
TMFX vs. VGT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|---|
TMFX Motley Fool Next Index ETF | 2.16% | 10.41% | 16.04% | 17.95% | -28.16% | -0.65% |
VGT Vanguard Information Technology ETF | 28.03% | 21.77% | 29.30% | 52.66% | -29.70% | -0.50% |
Correlation
The correlation between TMFX and VGT is 0.70, 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 | 0.70 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.73 |
Correlation (All Time) Calculated using the full available price history since Dec 31, 2021 | 0.79 |
The correlation between TMFX and VGT has been stable across timeframes, ranging from 0.70 to 0.79 - a consistent structural relationship.
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Return for Risk
TMFX vs. VGT — Risk / Return Rank
TMFX
VGT
TMFX vs. VGT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Motley Fool Next Index ETF (TMFX) and Vanguard Information Technology ETF (VGT). 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 | VGT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.73 | ||
| Sortino ratioReturn per unit of downside risk | -1.90 | ||
| Omega ratioGain probability vs. loss probability | 1.12 | 1.40 | -0.27 |
| Calmar ratioReturn relative to maximum drawdown | 0.86 | 3.31 | -2.46 |
| Martin ratioReturn relative to average drawdown | 2.72 | 10.16 | -7.44 |
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Drawdowns
TMFX vs. VGT - Drawdown Comparison
The maximum TMFX drawdown since its inception was -34.72%, smaller than the maximum VGT drawdown of -54.63%. Use the drawdown chart below to compare losses from any high point for TMFX and VGT.
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Drawdown Indicators
| TMFX | VGT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -34.72% | -54.63% | +19.91% |
Max Drawdown (1Y)Largest decline over 1 year | -13.95% | -16.40% | +2.45% |
Max Drawdown (3Y)Largest decline over 3 years | -24.05% | -27.23% | +3.18% |
Max Drawdown (5Y)Largest decline over 5 years | — | -35.07% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -35.07% | — |
Current DrawdownCurrent decline from peak | -3.61% | -4.18% | +0.57% |
Average DrawdownAverage peak-to-trough decline | -14.58% | -7.95% | -6.63% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.39% | 5.34% | -0.95% |
Volatility
TMFX vs. VGT - Volatility Comparison
The current volatility for Motley Fool Next Index ETF (TMFX) is 5.37%, while Vanguard Information Technology ETF (VGT) has a volatility of 10.66%. This indicates that TMFX experiences smaller price fluctuations and is considered to be less risky than VGT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| TMFX | VGT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.37% | 10.66% | -5.29% |
Volatility (6M)Calculated over the trailing 6-month period | 12.82% | 18.19% | -5.37% |
Volatility (1Y)Calculated over the trailing 1-year period | 17.16% | 22.44% | -5.28% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 23.34% | 25.50% | -2.16% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 23.34% | 24.78% | -1.44% |
TMFX vs. VGT - Expense Ratio Comparison
TMFX has a 0.50% expense ratio, which is higher than VGT's 0.09% expense ratio.
Dividends
TMFX vs. VGT - Dividend Comparison
TMFX's dividend yield for the trailing twelve months is around 0.05%, less than VGT's 0.32% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TMFX Motley Fool Next Index ETF | 0.05% | 0.05% | 0.06% | 0.16% | 0.22% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
VGT Vanguard Information Technology ETF | 0.32% | 0.40% | 0.60% | 0.65% | 0.91% | 0.64% | 0.82% | 1.11% | 1.29% | 0.99% | 1.31% | 1.28% |
Frequently Asked Questions
TMFX and VGT have a correlation of 0.70, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VGT has higher volatility (10.66%) compared to TMFX (5.37%). In terms of maximum drawdown, TMFX dropped -34.72% vs VGT's -54.63%.
On 3-year performance, VGT leads with 31.77% vs 12.55% for TMFX. On fees, VGT is cheaper at 0.09% per year. On volatility, TMFX has been the lower-risk option at 5.37%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, VGT has performed better with a 31.77% return vs 12.55%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VGT is cheaper with a 0.09% expense ratio, compared with 0.50% for TMFX.
VGT has the higher dividend yield at 0.32%, compared with 0.05% for TMFX.
TMFX is categorized as Mid Cap Growth Equities, while VGT is Technology Equities. TMFX tracks Motley Fool Next Index, while VGT tracks MSCI USA IMI Information Technology 25/50 Index. They also come from different issuers: Motley Fool and Vanguard. Their fees differ too: 0.50% for TMFX and 0.09% for VGT.
VGT currently has the higher Sharpe Ratio (2.43 vs 0.70), 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.
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