Motley Fool Mid-Cap Growth ETF

Motley Fool Mid-Cap Growth ETF (TMFM) is an actively managed fund. It does not track an index. Instead, it picks a focused group of US mid-sized growth companies, 32 stocks as of August 31, 2026, led by Dexcom, Guidewire Software and HealthEquity. Its holdings overlap little with index-based mid-cap growth funds. Its 0.85% expense ratio is about double the 0.43% average of similar funds.

• Over the year to Oct 27, 2026, TMFM returned -10.9%, 6th of 6 among similar funds.
• Its worst full calendar year was 2022 (-27.4%); its best was 2023 (+21.7%).
• The deepest fall in its price history was 31.7% (Dec 30, 2021 to Jun 16, 2022), recovered by Sep 19, 2024.

As of Aug 31, 2026, the fund held 32 securities; the ten largest made up 46.73% of assets, and 13.62% sat in cash and money-market holdings.

By sector

• Over the three months to Aug 31, 2026, investors withdrew a net $7.2M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.83%, +2.00%, +5.63%.

TMFM does not track an index. Its adviser, Motley Fool Asset Management, picks stocks itself using what it calls a quality growth style. At least 80% of net assets go into US mid-sized companies with growth traits. The adviser uses the Russell Midcap Growth Total Return Index only to set that size range, not as a portfolio to copy. As of October 31, 2025, the index's median company was worth about $14.5 billion.

The adviser judges each company on four points: management, culture and incentives; the economics of the business, such as return on capital and margins; competitive advantage, such as pricing power or network effects; and trajectory, meaning what the company could look like in ten or more years. It aims to hold stocks for many years, stays fully invested and does not try to time the market. Portfolio turnover, the share of holdings traded in a year, was 33%.

The portfolio is concentrated. It generally holds at least 30 positions, and the 10 largest are capped at 60% of assets. The fund usually stops adding to a stock once it passes 5% of assets, but it may let a winner stay above that level. As of August 31, 2026, the top 10 made up 46.7%. The fund may also lend its securities to brokers.

• TMFM charges 0.85% a year, versus an average of 0.43% for the similar funds below (4th of 6, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $87 in the first year and $1,049 over 10 years (assuming a 5% annual return).

It is a concentrated, actively managed growth fund with a high fee and a deep 2022 drop, so it fits better as a smaller holding beside broad core funds.

TMFM could add a hand-picked group of US mid-sized growth companies alongside broader funds. It can be volatile. In the 2022 bear market it fell 30.9% between January 3 and June 16, 2022. It did not recover until August 30, 2024, about 26.5 months later. Its worst calendar year was 2022, when it lost 27.4%. Anyone who had to sell shares during that stretch would have locked in losses. The fund's price history does not cover the 2008 crisis or the 2020 crash. Income is minimal: the yield was 0.05% as of October 27, 2026, paid once a year. Costs add up too. The SEC's standard example shows $1,049 in expenses over 10 years on a $10,000 investment. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.

Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).