LRGC vs TMFM

LRGCAAB US Large Cap Strategic Equities ETF

TMFMDMotley Fool Mid-Cap Growth ETF

In short

LRGC AB's stock pickers in an ETF wrapper: roughly 70 large-cap US names picked with fundamental research plus quant screens, measured against the S&P 500. Active conviction, priced under the typical active peer.

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

LRGC The Fund seeks long-term growth of capital. It is actively managed and normally invests at least 80% of net assets in equities of large-capitalization U.S. companies.

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

• LRGC Roughly 70 holdings against a 500-stock yardstick, with quality and value screens doing the filtering. Each name actually carries weight.
• 0.39% a year sits below the median fee in its active large-cap group, so the manager isn't digging out of a deep cost hole.
• One of the stronger implementations among the actively managed US large-cap funds we track, with a plain mandate: at least 80% of net assets in large-cap US equities.
• Launched in 2023 on one of AB's core US equity strategies, with Jane Street signed on as lead market maker from day one.prnewswire.com

• 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

• LRGC At 0.39%, it costs more than cheaper enhanced-index rivals in the same group, such as JUSA at 0.12% and GUSE at 0.30%.
• Outcomes ride on the team's judgment, not an index rulebook, and about 70 positions concentrate those calls.
• It trades lightly next to the big index names, so spreads can run wider, especially in fast markets.

• 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 LRGC profile⁠

Full TMFM profile⁠