MFMO ETF Explained: Returns, Expense Ratio, Holdings and Alternative ETFs
The Motley Fool Momentum Factor ETF, or MFMO ETF, offers access to US stocks through momentum characteristics. Investors should understand the periodic index adjustments and the potential for concentration in individual stocks, and should also review market outlooks by regime, liquidity and volatility conditions.
What Is the Motley Fool Momentum Factor ETF?
The MFMO ETF is a passive product designed to track the performance of the Motley Fool Momentum Index. It mainly holds US companies from Motley Fool's research-based candidate pool that meet momentum and liquidity criteria.
It suits investors who are interested in the trend factor in US equities and want rules-based momentum exposure instead of picking individual stocks.
The ETF is managed passively (index tracking) by Motley Fool Asset Management.
How Does the Motley Fool Momentum Factor ETF Invest?
| Item | Details |
|---|---|
| Tracked Index | Motley Fool Momentum Index |
| Management Style | Passive index tracking |
| Rebalancing Frequency | Quarterly |
| Distribution Frequency | No distribution history |
| Total Expense Ratio | 0.50% |
| Issuer | Motley Fool Asset Management |
The Motley Fool Momentum Index selects its constituents by evaluating relative strength and momentum characteristics within a research-based candidate pool. The MFMO ETF basically replicates the index, but it may use a representative sampling approach to improve tracking efficiency.
- Combination of a research-based candidate pool and momentum signals
- Rules-based selection that reflects liquidity conditions
Motley Fool Momentum Factor ETF Size and Costs (AUM and Expense Ratio)
Assets under management (AUM) stand at $12.4M, and the total expense ratio is 0.50% per year.
The MFMO ETF is classified as a micro-cap fund, so it is important to check trading volume and bid-ask spreads before placing an order. Differences in fees and ease of trading compared with peer ETFs may matter more or less depending on the holding period and trading style.
Motley Fool Momentum Factor ETF Performance and Trends
Momentum strategies can show relative strength when price trends persist, but they may become more unstable when market leadership rotates or direction reverses sharply. The MFMO ETF reflects these dynamics through rules-based selection and periodic adjustments.
Fund flows are influenced by the market environment, including appetite for growth stocks, shifts in risk sentiment, interest rates and earnings expectations. Because the MFMO ETF is a micro-cap ETF, investors should consider trading volume, bid-ask spreads and changes in net assets together when trading.
Motley Fool Momentum Factor ETF Strengths and Weaknesses
Rules-based momentum exposure is a strength, but investors should be aware of volatility stemming from trend reversals and concentration in holdings.
💪 Key Strengths
⚠️ Points to Watch
Motley Fool Momentum Factor ETF Alternatives and Related Products
In the comparison table, the MTUM ETF covers large-cap momentum, while the SPMO ETF is a large-cap alternative with lower fees and a broader asset base. The XMMO ETF targets mid-caps and the XSMO ETF targets small-caps, and the JMOM ETF offers momentum factor exposure at a relatively low fee. Examples of MFMO ETF holdings include XOM, NVDA, AVGO, GS and GOOG, so changes in individual stocks and sectors can affect tracking results.
| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
| Invesco S&P 500 Momentum ETF | $138.66 | -0.1% | $21.5B | 0.13% | 0.79% | +15.2% | |
| iShares MSCI USA Momentum Factor ETF | $289.45 | +0.3% | $18.0B | 0.15% | 0.64% | +14.4% | |
| Invesco S&P MidCap Momentum ETF | $134.89 | -0.3% | $6.6B | 0.34% | 0.73% | -0.4% | |
| Invesco S&P SmallCap Momentum ETF | $78.60 | -0.1% | $2.7B | 0.35% | 0.65% | +7.2% | |
| JPMorgan U.S. Momentum Factor ETF | $79.40 | -0.3% | $2.7B | 0.12% | 0.78% | +16.6% |
| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| AMD | Advanced Micro Devices Inc | 0.10% | $516.79 | +1.7% | $843.6B | 132.6 | - |
| INTC | Intel Corp | 0.09% | $86.96 | +1.7% | $459.7B | - | 0.05% |
| LRCX | Lam Research Corp | 0.11% | $230.10 | -0.0% | $288.0B | 34.2 | 0.57% |
| WMT | Walmart Inc | 0.05% | $119.89 | -1.0% | $951.2B | 43.4 | 0.83% |
| AVGO | Broadcom Inc | 0.05% | $321.68 | -0.5% | $1.54T | 41.1 | 0.81% |
| GOOGL | Alphabet Inc | 0.10% | $320.21 | -1.2% | $3.90T | 16.1 | 0.25% |
| AAPL | Apple Inc | 0.05% | $347.73 | -0.1% | $5.07T | 39.9 | 0.32% |
| NVDA | NVIDIA Corp | 0.05% | $210.96 | -0.6% | $5.08T | 26.7 | 0.37% |
Motley Fool Momentum Factor ETF Investor Checkpoints
When evaluating the MFMO ETF, investors should consider not only the nature of the momentum strategy itself but also the product's ease of trading, distribution policy and concentration of holdings. Rather than judging by short-term performance alone, it is necessary to confirm that the fund fits your investment horizon and risk tolerance.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| Fee Structure | Check the cumulative effect of costs over a long holding period | Check disclosure documents |
| Ease of Trading | Review trading volume and bid-ask spreads | Verification needed |
| Stock Concentration | Check top holdings and sector exposure | Review concentration |
| Distribution Policy | Confirm whether there is any distribution history | No distribution history |
Momentum strategies can suffer larger losses when market preferences shift quickly, and a non-diversified structure can amplify the impact of bad news on a specific stock or sector. In addition, because of its micro-cap size, investors should be mindful of changes in the trading environment.
The MFMO ETF is a US equity product that combines a research-based candidate pool with momentum signals. To take advantage of trend following, investors need to review the lack of distribution history, ease of trading, and the risks of concentration in holdings and sectors together, and then decide on position size within a long-term investment plan.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of August 18, 2026.