At a glance
TMFE charges 0.5% a year, above the 0.35% average of the 8 funds most like it (the 6th cheapest of 9). It has $78.4M in assets, the 9th largest of that group; it paid 0.29% of its price in distributions over the past 12 months, annual. Over the past year it returned +3.7% with distributions reinvested (S&P 500: +11.5%), 7th of those 9 funds; over three years it returned +20.9% a year. At its worst it fell 30.8% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 13 months after the low. Its ten largest positions make up 47.0% of the fund, out of 100 in all.
The short version
The Motley Fool Capital Efficiency 100 Index ETF (TMFE) tracks an index of 100 U.S. stocks. They are drawn from companies that Motley Fool analysts and newsletters recommend, then ranked by how well each one turns its investments into revenue and profit. That filter gives a mix of growth names like NVIDIA and Amazon with steadier ones like Costco and Walmart. It costs 0.50% a year, above the 0.35% average of similar funds.
Price history
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TMFE +3.7% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| TMFE official prospectus, to Dec 31, 2024 | — | +27.73% | — | — | — | +10.04% |
| Motley Fool Capital Efficiency Index (reflects no deduction for fees, expenses or taxes) index, same period | — | +29.09% | — | — | — | +10.64% |
| Motley12 index, same period | — | +25.02% | — | — | — | +8.84% |
| TMFE price data to Oct 27, 2026 | +5.8% | +3.7% | +20.9% | — | — | +9.9% |
- Over the year to Oct 27, 2026, TMFE returned +3.7%, 7th of 9 among similar funds.
- Its worst full calendar year was 2022 (-25.8%); its best was 2023 (+41.1%).
- The deepest fall in its price history was 31.1% (Dec 31, 2021 to Oct 14, 2022), recovered by Nov 24, 2023.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +5.8% | — |
| 2025 | +11.1% | — |
| 2024 | +28.0% | +27.73% |
| 2023 | +41.1% | +41.08% |
| 2022 | -25.8% | -25.64% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 30.8% over that stretch · deepest drop along the way 30.8%, back to its old high 13.3 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2025 | $0.0900 | -25.0% |
| 2024 | $0.1200 | +33.3% |
| 2023 | $0.0900 | +50.0% |
| 2022 | $0.0600 |
What's inside
As of Aug 31, 2026, the fund held 100 securities; the ten largest made up 47.04% of assets.
| Holding | Weight | |
|---|---|---|
| Mastercard Inc | 5.58% | |
| Visa Inc | 5.18% | |
| Amazon.com Inc | 4.97% | |
| NVIDIA Corp | 4.89% | |
| Apple Inc | 4.84% | |
| Meta Platforms Inc | 4.60% | |
| Costco Wholesale Corp | 4.53% | |
| Alphabet Inc | 4.32% | |
| Netflix Inc | 4.09% | |
| Walmart Inc | 4.05% | |
| Lam Research Corp | 3.67% | |
| Crowdstrike Holdings Inc | 2.92% | |
| TJX Cos Inc | 2.74% | |
| Gilead Sciences Inc | 2.36% | |
| Booking Holdings Inc | 2.06% |
By country
United States 99.8%By asset type
Stocks 99.8%By sector
Sectors of the companies held, for the 91.5% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Aug 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Aug 31, 2026, investors withdrew a net $8.9M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -1.82%, +1.99%, +3.16%.
How it works
TMFE is passively managed. It aims to match the Motley Fool Capital Efficiency 100 Index, which was built by Motley Fool Investment Analytics. Solactive AG, an unaffiliated firm, calculates the index. The starting pool is U.S. companies that are active picks of a Motley Fool newsletter or among the 150 highest-rated U.S. companies in the firm's analyst database. A buffer rule lets stocks that slip only slightly in rank stay in the pool, which cuts needless trading. Each stock must also trade at least $1 million a day, on average, over the prior three months.
Each candidate gets a combined "capital efficiency" score that blends growth, profitability and stability. The score is a gauge of return on invested capital: how much profit a business earns from the money put into it. The 100 highest scorers make the index. Each stock's weight is its market value multiplied by its score, with a 4.8% cap applied at each quarterly rebalance. Between rebalances, rising stocks can drift past the cap. Mastercard made up 5.6% of the fund as of August 31, 2026.
The fund generally owns every stock in the index and must keep at least 80% of its assets in them. It is "non-diversified," meaning it can put more money into a few stocks than a typical fund. Its 10 largest holdings made up 47% of assets. It uses no leverage or derivatives.
What it really costs
- TMFE charges 0.5% a year, versus an average of 0.35% for the similar funds below (6th of 9, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $51 in the first year and $628 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| TMFE | $51 | $160 | $280 | $628 |
In a retirement portfolio
It is a concentrated, non-diversified bet on a Motley Fool stock-selection screen with a short record and above-average cost, so it fits best as a smaller position beside a broad core fund.
TMFE could add a tilt toward profitable, growing U.S. companies alongside a broad index fund. Its record is short, though. It launched in December 2021, so it has no results for the 2008 or 2020 crashes. In the 2022 bear market it fell 30.8%. Its deepest drop was 31.1%, from December 31, 2021 to October 14, 2022, and it took about 13 months, until November 2023, to recover. It lost 25.6% in calendar year 2022, its worst year. A retiree who had to sell shares in late 2022 would have locked in much of that loss. Income is small: the yield was 0.29% as of October 27, 2026, paid once a year. In the SEC's standard example, costs on $10,000 come to $51 after one year and $628 after 10 years. Past results don't predict the future, and a retirement plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want a rules-based way to own Motley Fool-recommended U.S. stocks, screened for profitability, growth and stability.
- Investors adding a smaller satellite position next to a broad index fund, and willing to accept a top 10 that makes up 47% of assets.
- Long-term holders who don't need income from this fund, since it yielded 0.29% as of October 27, 2026 and pays once a year.
Look elsewhere if
- Cost-focused investors: Schwab U.S. Large-Cap Growth ETF (SCHG) charges 0.04% a year, compared with TMFE's 0.50%.
- Retirees who need regular income, since TMFE pays a single annual distribution and yields well under 1%.
- Investors wary of small funds: TMFE had $78.4 million in net assets as of August 31, 2026, the smallest of nine funds compared.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| TMFE this fund | — | 0.5% | $78.4M | +3.7% | +20.9% |
| TMFC Motley Fool 100 Index ETF | 42% | 0.5% | $2.09B | +9.6% | +28.1% |
| AGRW Allspring LT Large Growth ETF | 35% | 0.35% | $112.8M | +4.7% | — |
| SCHG Schwab U.S. Large-Cap Growth ETF | 35% | 0.04% | $63.03B | +2.2% | +23.0% |
| CARK CastleArk Large Growth ETF | 34% | 0.54% | $319.2M | +4.4% | — |
| DUHP Dimensional US High Profitability ETF | 33% | 0.21% | $12.28B | +11.7% | +21.2% |
| OMFL Invesco Russell 1000 Dynamic Multifactor ETF | 33% | 0.29% | $4.80B | +17.8% | +19.3% |
| TCHP T. Rowe Price Blue Chip Growth ETF | 33% | 0.57% | $2.16B | -1.2% | +23.5% |
Questions investors ask
What does TMFE invest in?
TMFE holds about 100 U.S. stocks from the Motley Fool Capital Efficiency 100 Index. Its largest holdings as of August 31, 2026 were Mastercard (5.6%), Visa (5.2%), Amazon (5.0%), NVIDIA (4.9%), Apple (4.8%) and Meta Platforms (4.6%). Costco, Alphabet, Netflix and Walmart rounded out the top 10, which made up 47% of the fund. Technology was the biggest sector at 27.2%, followed by consumer discretionary at 16.3%.
What's the difference between TMFE and TMFC?
Both are Motley Fool index ETFs that charge 0.50% a year, and about 42% of their holdings overlap. TMFE ranks stocks with a capital-efficiency score that weighs growth, profitability and stability. TMFC, the Motley Fool 100 Index ETF, is much larger, with $2.09 billion in net assets compared with TMFE's $78.4 million as of August 31, 2026. As of October 27, 2026, TMFC returned 9.6% over one year and 28.1% a year over three years. TMFE returned 3.7% and 20.9% over the same periods.
Does TMFE pay dividends?
Yes, but the payout is small and comes once a year. Over the 12 months to October 27, 2026, TMFE paid $0.09 per share, a yield of 0.29%. That is because its holdings, such as NVIDIA, Amazon and Meta Platforms, tend to put most of their profits back into the business or into buybacks rather than paying large dividends. Investors looking for steady income would get little from this fund on its own.
What is TMFE's expense ratio?
TMFE's expense ratio is 0.50% a year, according to its prospectus filed December 30, 2025. That is above the 0.35% average of similar funds and well above the 0.04% charged by Schwab U.S. Large-Cap Growth ETF (SCHG). Among nine comparable funds, TMFE ranked 6th on cost. In the SEC's standard example of $10,000 earning 5% a year, costs would total about $51 after one year, $280 after five years and $628 after 10 years.
How has TMFE performed since it launched?
Results have been uneven. Through December 31, 2024, TMFE returned 10.04% a year since its December 2021 launch, a little behind its index's 10.64%. It lost 25.6% in 2022, then gained 41.1% in 2023 and 27.7% in 2024. Based on price, it gained 11.1% in 2025 and 5.8% in 2026 through October 27. Its one-year return of 3.7% to that date ranked 8th of nine similar funds.