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TMFS - ETF AI Analysis

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TMFS

Motley Fool Small-Cap Growth ETF (TMFS)

Rating:66Neutral
Price Target:
TMFS, the Motley Fool Small-Cap Growth ETF, has a solid overall rating that reflects a portfolio of smaller companies with generally strong growth prospects but some valuation and profitability risks. Standout holdings like HealthEquity, LiveRamp, Q2 Holdings, and Hexcel support the fund’s quality through robust financial performance, positive earnings calls, and strong technical momentum, even though many of them look expensive based on high P/E ratios. Weaker spots such as StoneX Group and Ultragenyx, which face profitability, cash flow, and valuation challenges, along with the fund’s focus on small-cap growth names, add risk and help explain why the rating is good but not top-tier.
Positive Factors
Strong Leading Holding
The largest position, StoneX Group, has shown very strong gains this year, providing a solid boost to the fund.
Broad Sector Mix
Holdings spread across technology, industrials, health care, financials, and other sectors help reduce the impact if any one industry struggles.
Multiple Strong Contributors
Several top holdings such as LiveRamp, Hexcel, Live Oak Bancshares, and frontdoor have delivered strong or steady performance, supporting overall returns.
Negative Factors
High Expense Ratio
The fund’s expense ratio is relatively high for an ETF, which means more of your returns go toward fees each year.
Mixed Top-Holding Performance
Some key positions like Q2 Holdings and Toast have shown weak performance this year, which can drag on the fund’s results.
Heavy U.S. and Small-Cap Focus
With almost all assets in U.S. small-cap growth stocks, the fund is sensitive to swings in this niche part of the market and offers little geographic diversification.

TMFS vs. SPDR S&P 500 ETF (SPY)

TMFS Summary

The Motley Fool Small-Cap Growth ETF (TMFS) is an exchange-traded fund that focuses on fast-growing smaller U.S. companies rather than big household names. It doesn’t track a standard index; instead, Motley Fool’s team picks a mix of stocks across technology, industrials, health care, and more. Well-known holdings include Toast and GXO Logistics. Someone might invest in TMFS if they want growth potential and diversification into smaller, up-and-coming businesses. However, small-cap stocks can be very volatile, so the ETF’s price can rise and fall more sharply than the overall market.
How much will it cost me?The Motley Fool Small-Cap Growth ETF (TMFS) has an expense ratio of 0.85%, meaning you’ll pay $8.50 per year for every $1,000 invested. This is higher than average because it is actively managed, with experts carefully selecting small-cap growth stocks for the portfolio.
What would affect this ETF?The Motley Fool Small-Cap Growth ETF (TMFS) could benefit from economic growth and innovation in sectors like technology and healthcare, which make up a significant portion of its holdings. However, small-cap stocks are often more sensitive to economic downturns, rising interest rates, and market volatility, which could negatively impact the ETF's performance. Additionally, its focus on U.S.-based companies may limit exposure to global growth opportunities.

TMFS Top 10 Holdings

TMFS leans into U.S. small-cap growth with a clear tilt toward industrials, tech, and health care. Hexcel has been one of the fund’s engines, riding strong momentum despite some revenue hiccups, while LiveRamp and Herc Holdings are also pulling their weight with steady-to-rising performance. StoneX is more of a mixed story, with longer-term gains but recent softness, and Q2 Holdings has been lagging, losing steam year-to-date. Overall, the fund is driven by a handful of nimble U.S. names rather than any single dominant giant.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
StoneX Group5.39%$3.10M$9.10B74.52%
58
Neutral
Q2 Holdings5.01%$2.88M$3.80B-20.70%
75
Outperform
Healthequity4.52%$2.60M$8.41B14.49%
76
Outperform
Herc Holdings4.41%$2.54M$5.02B43.94%
67
Neutral
GXO Logistics4.14%$2.38M$5.77B4.44%
68
Neutral
frontdoor4.00%$2.30M$5.10B29.92%
72
Outperform
Toast Inc3.74%$2.15M$18.72B-33.49%
73
Outperform
Live Oak Bancshares3.71%$2.13M$1.98B39.58%
72
Outperform
Ufp Technologies3.60%$2.07M$1.97B18.23%
75
Outperform
GooseHead Insurance3.53%$2.03M$2.20B-25.94%
59
Neutral

TMFS Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
35.05
Positive
100DMA
34.39
Positive
200DMA
34.71
Positive
Market Momentum
MACD
0.32
Negative
RSI
61.58
Neutral
STOCH
93.00
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For TMFS, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 35.66, equal to the 50-day MA of 35.05, and equal to the 200-day MA of 34.71, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 61.58 is Neutral, neither overbought nor oversold. The STOCH value of 93.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TMFS.

TMFS Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$59.00M0.85%
66
Neutral
$50.41M0.95%
63
Neutral
$26.76M0.80%
60
Neutral
$26.20M0.49%
64
Neutral
$7.82M0.55%
71
Outperform
$6.68M0.28%
61
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TMFS
Motley Fool Small-Cap Growth ETF
36.72
2.63
7.71%
MMSC
First Trust Multi-Manager Small Cap Opportunities ETF
SGRW
Harbor Active Small Cap Growth ETF
ACSG
American Century Small Cap Growth Insights ETF
SAWS
AAM Sawgrass US Small Cap Quality Growth ETF
FSEG
Fidelity Enhanced Small Cap Growth ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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