TMFM: An Underperforming Active Stock Picking Fund
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TMFM, the Motley Fool Mid-Cap Growth ETF, has consistently underperformed its benchmark by 3-5% annually. Despite a high Active Share, it shows a high correlation with the iShares Russell Mid-Cap Growth ETF, raising questions about its diversification benefits. The fund's stock-picking strategy lacks systematic success.
February 09, 2025 | 8:30 am
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TMFM, the Motley Fool Mid-Cap Growth ETF, has underperformed its benchmark by 3-5% annually. Its high correlation with the iShares Russell Mid-Cap Growth ETF questions its diversification benefits.
The consistent underperformance of TMFM relative to its benchmark and its high correlation with another ETF suggest potential issues with its stock-picking strategy and diversification benefits, likely leading to negative investor sentiment.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100