(TMFE) Motley Fool Capital - Ratings and Ratios

The Motley Fool Capital Efficiency 100 Index ETF (NYSE ARCA: TMFE) is a proprietary, rules-based index ETF established in 2021 by The Motley Fool (TMF). It is designed to track the performance of U.S. companies with the highest capital efficiency scores, as determined by TMFs analysts and newsletters. The index focuses on companies that optimize capital allocation, measured by metrics such as return on capital employed (ROCE) and return on invested capital (ROIC). Additionally, the ETF includes only those stocks that meet specific liquidity requirements to ensure tradability. The fund is non-diversified, meaning it can concentrate its holdings in a smaller number of securities, and under normal circumstances, at least 80% of its total assets are invested in the component securities of the index.

As a large-cap growth ETF, TMFE targets companies with strong growth potential that also demonstrate efficient use of capital. The ETFs methodology combines qualitative analysis from TMFs research team with quantitative screens to identify high-performing stocks. This approach aims to balance growth opportunities with financial discipline, appealing to investors seeking exposure to companies that generate strong returns on capital while maintaining scalable business models.