Frequently Asked Questions

What is an ETF?

ETF stands for exchange-traded fund. It’s an investment vehicle that holds multiple underlying assets. These assets can be a collection of stocks, bonds, commodities, or even currency.

Meaning, ETFs give you the ability to buy many stocks (or bonds, or other asset groups) at once, in one convenient vehicle. And, “exchange-traded” means it can be bought and sold on an exchange, just like a stock. Click here to learn more about ETFs and how they work.

What is a brokerage account?

A brokerage account is an investment account where you can trade assets, including stocks, bonds, mutual funds, and ETFs. You can open a brokerage account in-person or online with a brokerage firm, which connects buyers and sellers to complete investment transactions. Popular brokerage firms include E*Trade, TD Ameritrade, Fidelity Investments, USAA, Vanguard, and Charles Schwab.

To buy an ETF, log in to your brokerage account, search the name of the fund or type in its ticker symbol (the abbreviated code, such as “TMFC”), and select the number of shares you’d like to buy.

What are your fees? And when does my account get charged?

All of our ETFs use a single fee structure known as the expense ratio.

Our passive ETFs (TMFC, TMFX, TMFE) have a gross annual expense ratio of 0.50%. For example, for every $1,000 you invest, you only pay $5 in fees.

Our active ETFs (TMFG, TMFS, TMFM) have a gross annual expense ratio of 0.85%. For example, for every $1,000 you invest, you only pay $8.50 in fees.

Your fees will be deducted annually from the Net Asset Value (NAV) of the fund itself, rather than paying fees directly to Motley Fool Asset Management.

I invested in a mutual fund with Motley Fool Asset Management before you converted to ETFs. Is there any action required on my part?

If your account(s) were held directly with us, yes! You must transfer your account into a qualified brokerage account. Follow these instructions to get started as soon as possible.

If your mutual funds were already held in a qualified brokerage account before the conversion to ETFs, then no action is needed.

Which ETF is right for me?

Investment products can serve different needs for different people. Whether you’re looking to fill a current gap in exposure to an asset class or investment strategy, or you’re interested in blending several of our ETFs to create a holistic portfolio approach, our line-up of ETFs are easy to buy individually or in combinations to work as a suite of solutions.

Explore our funds to learn more and choose which ETF(s) may work best for your portfolio.

Do Motley Fool Asset Management ETFs track specific services or newsletters from The Motley Fool, LLC?

No, our ETFs track proprietary indices created by The Motley Fool, LLC, not individual newsletters or membership services. Visit our Passive Strategy page to learn more about how our passive ETFs track active recommendations from The Motley Fool, LLC.

Our active ETFs are composed of hand-selected stocks at the sole discretion of our experienced Portfolio Managers at Motley Fool Asset Management, based on our Quality framework.

Can I add Motley Fool Asset Management ETFs to my 401(k)?

All retirement accounts, including 401(k) plans, have their own unique characteristics. 401(k) plans traditionally offer a menu of preselected mutual funds. Currently, few offer ETFs due to trading and record-keeping limitations, but we’re hopeful this could change in the future.

Some 401(k) plans offer a self-directed brokerage account option. If this feature is available in your plan, you may be able to purchase our ETFs in your 401(k) account.

Your plan administrator is best equipped to answer your questions about your specific retirement plan, so we suggest you reach out to them and ask if ETFs can be included in yours.

Can I send Motley Fool Asset Management a check to manage my money?

ETFs are traded on the secondary market, just like individual stocks, which means they cannot be directly held with Motley Fool Asset Management. You must purchase ETFs through your brokerage account. 

Are ETFs considered a safe investment?

All investing involves risk and may lose money, including principal. Please consider the charges, risks, expenses, and investment objectives before you decide if an investment is a good fit for you.

Your asset allocation – the way you divide your investments among different investments – may depend upon your unique risk tolerance and goals.

Each and every one of our funds aims for potential growth, though some are more aggressive in their pursuit.  You might consider a blend of passive ETFs and active ETFs with different types of exposure for a well-rounded portfolio.

That’s why we’ve made our line-up of ETFs easy to buy individually if you’re looking to fill a current gap in exposure to an asset class, or you can combine products for a holistic portfolio approach.