ETF Evaluator: Motley Fool Capital Efficiency 100 ETF () Follow This ETF

Motley Fool Capital Efficiency 100 ETF Overview

Motley Fool Capital Efficiency 100 ETF (TMFE) is a passively managed U.S. Equity Large Blend exchange-traded fund (ETF). Motley Fool launched the ETF in 2021.

The investment seeks results that correspond (before fees and expenses) generally to the total return performance of the Motley Fool Capital Efficiency 100 Index. The index was established by TMF in 2021 and is a proprietary, rules-based index designed to track the performance of the highest scoring stocks of U.S. companies, measured by a company’s capital efficiency, that have been recommended by TMF’s analysts and newsletters, and that also meet certain liquidity requirements. Under normal circumstances, at least 80% of the fund’s total assets will be invested in the component securities of the index. It is non-diversified.

About Motley Fool Capital Efficiency 100 ETF (TMFE)

There are 5 members of the management team with an average tenure of 1.98 years: William Mann (2025), Anthony Arsta (2021), Charles Travers (2023), Nathan Ronci (2025) and Ayal Cusner (2025). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: S&P 500 (TR) (1970) index with a weighting of 100% and Motley Fool Cap Efficiency 100 TR USD index with a weighting of 100%. Motley Fool Capital Efficiency 100 ETF has 103 securities in its portfolio. The top 10 holdings constitute 47.0% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a nondiversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

Motley Fool Capital Efficiency 100 ETF is part of the Equity global asset class and is within the U.S. Equity ETF group. Motley Fool Capital Efficiency 100 ETF has 0.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 99.9% There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Motley Fool Capital Efficiency 100 ETF has 0.1% of the portfolio in cash.

Assets Under Management

The fund has $77 million in total assets, which is below the $13 billion average for the Large Blend category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

TMFE Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Motley Fool Capital Efficiency 100 ETF expense ratio is average compared to funds in the Large Blend category. Motley Fool Capital Efficiency 100 ETF has an expense ratio of 0.50%, which is 21% higher than its category average, making the fund expense ratio grade a D. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Motley Fool Capital Efficiency 100 ETF has a portfolio turnover rate of 33%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 158% for the Large Blend category.

Recently, in the month of July 2026, Motley Fool Capital Efficiency 100 ETF returned 2.0%, which earned it a grade of A, as the Large Blend category had an average return of -0.8%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

Motley Fool Capital Efficiency 100 ETF has a trailing yield of 0.31%, which is below the 1.16% category average. The fund normally distributes its income annually and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Motley Fool Capital Efficiency 100 ETF Grades

Year to date, the ETF has returned 3.2%, 6.3 percentage points worse than the category, which translates into a grade of F. The fund has returned 8.5% over the past year (grade of F) and 16.6% over the past three years (grade of D).

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