FELG vs TMFM

FELGAFidelity Enhanced Large Cap Growth ETF

TMFMDMotley Fool Mid-Cap Growth ETF

In short

FELG Active stock-picking on an index-fund budget. FELG charges 0.18% to tilt around the Russell 1000 Growth Index rather than copy it, running a strategy whose track record dates to 2007.

TMFM The Motley Fool's own fund shop, stock-picking US mid caps for quality and growth. It ran as a mutual fund from 2014 and converted into an ETF in 2021, so the strategy is older than the ticker.

Stated mandate

FELG The fund seeks capital appreciation and normally invests at least 80% of its assets in common stocks included in the Russell 1000® Growth Index.

TMFM The Fund seeks long-term capital appreciation through an actively managed portfolio of U.S. mid-cap companies, using a quality-growth approach.

Why people hold it

• FELG 0.18% a year, roughly a third of the typical fee among active US growth-conviction funds.
• Not a moonshot: at least 80% of assets sit in Russell 1000 Growth constituents across about 110 stocks, so the manager's bets are tilts around a familiar benchmark.fidelity.com
• One of the strongest implementations in its peer group, and cheaper than most of the other top-graded names there (GUSE and MAGS at 0.30%, LRGC at 0.39%).
• A multi-billion-dollar fund from Fidelity with steady on-screen liquidity, and it pays quarterly.

• TMFM Genuinely active, not an index tracker: managers pick US mid-cap companies on quality and growth, with the Russell Midcap Growth index as the yardstick.
• The strategy has a paper trail: it launched in 2014 as the MFAM Mid-Cap Growth mutual fund and converted into this ETF in December 2021.etfgi.com
• Its peer group is crowded with enhanced large-cap funds (JUSA, FELG). This one stays in the middle of the market-cap range, where fewer active ETFs bother to fish.
• The portfolio is the sturdiest part of the package: a coherent book of US quality-growth names rather than a grab bag.

Worth knowing

• FELG Concentrated by design: roughly 110 large-cap growth names, so the megacap tech leaders at the top of the Russell 1000 Growth Index drive the ride both ways.
• Active means the portfolio deviates from the index on purpose, so results can land on either side of it.
• Not the cheapest seat in the cohort: JUSA runs 0.12%, though its mandate is broad large-cap rather than the growth slice.

• TMFM Fees are the headline trade-off. At 0.85% a year it runs above the typical fund in its peer group, and many times the cheapest enhanced-index names (JUSA at 0.12%).
• It trades thinly for a US equity ETF, so spreads can be wider and sizable orders can nudge the price. Limit orders matter more here than with a mega-cap index fund.
• On our overall read it sits in the lower tier of its peer group, with cost and trading friction doing most of the damage rather than the holdings.

Full FELG profile⁠

Full TMFM profile⁠