TMFX vs VTI
Motley Fool Next Index ETF vs Vanguard Morningstar Total Stock Market ETF
Which is better, TMFX or VTI?
Mid Cap Growth against Large Cap Blend.
VTI has a lower expense ratio. VTI led over 1Y, 3Y and the full window. The two have moved almost in lockstep, correlation 0.91. TMFX is less concentrated, with 15.2% of the fund in its ten largest positions against 33.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | TMFX | VTI |
|---|---|---|
| Expense Ratio | 0.50% | 0.03%Best |
| AUM | $37M | $689.2B |
| Dividend Yield | 0.05% | 1.06% |
| Holdings | 397 | 3,524 |
| YTD Return | +10.18% | +13.02%Best |
| 1Y Return | +10.78% | +16.63%Best |
| 3Y Return (annualized) | +18.08% | +21.97%Best |
| 5Y Return (annualized) | - | +11.99% |
| Volatility (annualized) | 20.1% | 15.9%Best |
| Max Drawdown | -34.3% | -25.4%Best |
| $10,000 over 4.8 years | $12,066 | $16,696Best |
| Top 10 Weight | 15.2%Best | 33.5% |
| Fund Family | Motley Fool Asset Management | Vanguard (US) |
| Category | Equity | Equity |
| Style | Mid Cap Growth | Large Cap Blend |
| Inception | Dec 30, 2021 | May 24, 2001 |
Volatility and max drawdown, and the $10,000 over 4.8 years row, are measured over the window both funds cover: Dec 31, 2021 to Oct 14, 2026 (4.8 years).
TMFX vs VTI growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 4.8 years both funds cover.
TMFX vs VTI Performance
Motley Fool Next Index ETF (TMFX) is an ETF from Motley Fool Asset Management and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year TMFX returned +10.78% while VTI returned +16.63%. Year to date, TMFX is up 10.18% versus a gain of 13.02% for VTI.
Over three years, TMFX compounded at +18.08% per year against +21.97% for VTI.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TMFX has been the more volatile fund, with annualized monthly volatility of 20.1% compared with 15.9% for VTI. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -34.3% for TMFX and -25.4% for VTI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.91. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
TMFX charges 0.50% per year while VTI charges 0.03%. On a $10,000 position that is $50 vs $3 annually, a gap of $47 per year that compounds over a long holding period. On income, TMFX currently yields 0.05% against 1.06% for VTI.
Holdings Overlap
96.5% of TMFX's money is in holdings VTI also owns. 3.1% of VTI's money is in holdings TMFX also owns.
Most of TMFX is already inside VTI. Owning both mostly buys the same companies twice.
220 positions in common, counted across the 224 positions we hold weights for in TMFX and 3,441 in VTI, against full books of 397 and 3,524.
What only one of them owns
Our book lists 1,000 positions for VTI that do not appear in our book for TMFX (94.4% of the fund), and 4 for TMFX that do not appear in VTI (3.1%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in TMFX | Weight in VTI | Difference |
|---|---|---|---|
| PSTGPure Storage Inc | 1.82% | 0.04% | 1.78% |
| ILMNIllumina, Inc. | 1.73% | 0.04% | 1.69% |
| OKTAOkta Inc. | 1.60% | 0.04% | 1.56% |
| ODFLOld Dominion Freig | 1.49% | 0.05% | 1.44% |
| HEIHeico Corp. | 1.47% | 0.03% | 1.44% |
| BIIBBiogen Inc. Com | 1.41% | 0.04% | 1.37% |
| DXCMDexcom Inc. | 1.40% | 0.05% | 1.35% |
| AXONAxon Enterprise Inc | 1.38% | 0.06% | 1.32% |
| ZSZscaler, Inc | 1.39% | 0.03% | 1.36% |
| EMEEmcor Group Inc | 1.38% | 0.04% | 1.34% |
96.5% of TMFX is already inside VTI.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, TMFX or VTI?
TMFX has an expense ratio of 0.50% while VTI charges 0.03%. VTI is the cheaper option, by $47 a year on a $10,000 investment.
Which performed better, TMFX or VTI?
Over the past year TMFX returned +10.78% vs +16.63% for VTI, so VTI leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, TMFX or VTI?
TMFX has been the more volatile fund at 20.1% annualized versus 15.9% for VTI. Worst drawdown: TMFX -34.3% vs VTI -25.4%.
Should I hold both TMFX and VTI?
TMFX and VTI have a monthly-return correlation of 0.91, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between TMFX and VTI?
96.5% of TMFX's money is in holdings VTI also owns. 3.1% of VTI's is in holdings TMFX also owns. They hold 220 positions in common, counted across the 224 positions we hold weights for in TMFX and 3,441 in VTI.
Which pays a higher dividend, TMFX or VTI?
TMFX yields 0.05% while VTI yields 1.06%, so VTI currently pays the higher dividend yield.
Is VTI better than TMFX?
VTI has a lower expense ratio. VTI led over 1Y, 3Y and the full window. The two have moved almost in lockstep, correlation 0.91. TMFX is less concentrated, with 15.2% of the fund in its ten largest positions against 33.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.