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Here's the Foolish bottom line
TMFE provides instant exposure to the 100 most capital-efficient companies recommended by The Motley Fool, LLC, ranked by the three critical outperformance factors of:
Profitability
Smart money decisions that deliver meaningful returns long-term.
Growth
Movement in the right direction.
Stability
Consistency and staying-power.
The only ETF that gives your clients instant exposure to the top 100 most capital-efficient companies recommended by The Motley Fool, LLC.
How We Define Capital Efficiency
TMFE uses the Capital Efficiency metric to measure a business’s fundamentals and quality. When solid and transparent companies make smart decisions with their capital, we believe they deliver meaningful returns to long-term investors – not to mention value to their customers and the U.S. economy at large.
To us, a company’s Capital Efficiency isn’t reflected in gross profitability alone. TMFE goes several meaningful steps further by following the proprietary formula created by The Motley Fool, LLC Investing Intelligence Team. They’ve created an index using a “Capital Efficiency score” based on three precise factors:
Profitability
Is it high or low?
A company should generate high returns on assets to be considered high-quality.
Growth
Is it trending in the right direction?
When it comes to the direction of profitability, the trend is your friend.
Stability
Is it consistent?
The market will always go up and down. If a company has a track record of growth year over year, in spite of rough patches, we believe it often reflects their strategic ability to overcome challenges. We believe in companies with historical staying-power.
We Believe Well-Run Companies Make The Smartest Investments
From our perspective, a high “Capital Efficiency score” can be a sign of:
An excellent management team with a commitment to corporate culture.
Strong, scalable execution of business strategies.
A healthy value proposition.
Potential long-term growth.
Brand loyalty and transparency.
These are all traits that The Motley Fool, LLC analysts prize when picking stocks – they’re the sorts of companies we think could potentially drive significant returns for your clients.
Empty talk can only take a company so far. A sustained track record on the other hand? That’s what makes a great foundation for a long-term portfolios, in our opinion.
Holdings What's in this Fund?
By now you’re probably wondering, so what are these elite companies who’ve passed all three layers of the strict Quality score to be included in The Motley Fool Capital Efficiency 100 Index ETF?
While you might suspect we’d keep this proprietary information tightly under wraps, the truth is that our positions are no secret at all! We don’t mind telling you exactly what holdings make up this ETF.
Transparency is a core value for us, which is why we intentionally launched fully-transparent ETFs. We publish our full holdings every day so you can know exactly how your clients' hard-earned money is being invested and hopefully feel confident about our selections. Follow the link below to see the full list.
Performance Does this thing actually work?
In addition to our entire list of holdings, we are also proud to show you exactly how this fund has performed since its inception. Click below to view TMFE's performance.
Where does TMFE fit into your offerings?
TMFE could be a great fit for advisors seeking...
A factor exposure, smart beta fund.
Passive implementation of The Motley Fool, LLC’s active stock recommendations in one convenient ETF.
An alternative to generic market-cap weighted funds.
U.S. equity exposure with mostly large-cap stocks.
Diversification across sectors.
A foundation for long-term investment portfolios.
Potential for risk mitigation, volatility reduction, and above-benchmark returns.
Companies with track records of profitability, growth, and stability.
Here's the Bottom Line for you
You have the same goals for your clients’ portfolios as capital-efficient companies do for their business. You’re aiming for profitability, growth, and long-term stability.
TMFE provides instant exposure to a diverse array of vetted, high-quality companies – from consumer brands, to healthcare, to innovative tech companies and more – that we feel have consistently turned their investments into stable growth.
Buy shares of TMFE today and let these TOP 100 most capital-efficient companies do the same for your clients' portfolios.
