Motley Fool VS SP500–1 Year Performance

Here is a graph of the Motley Fool Index (MFMS), and the Vanguard ETF which tracks the SP500:

Motley Fool index has gone up 33.72% over the past 12 months

SP500 has gone up 10% over the last 12 months

The shape of the graph between the MFMS looks similar to SP500, but consider that the scale is different. MFMS has grown 33.72% whereas the SP500 grew 10.83%.

So, we have proven that MFMS is worth buying! Here’s my affiliate link!!!— Just kidding. I’m not a shill for the Motley Fool.

Let’s consider one simple fact: the MFMS is weighted more heavily with tech stocks. So why compare against SP500, when we really should compare against the NASDAQ:

This NASDAQ ETF looks awfully similar to the MFMS ETF

The MFMS chart is nearly identical to the NASDAQ. In fact, the NASDAQ outperformed MFMS by 4.15% (37.87%–33.72%).

As explained in The Intelligent Investor back in 1949, always approach any “hot stock tip” or “stock screener” with extreme skepticism.

I will continue to monitor the MFMS ETF and see if it beats the NASDAQ over time. If you’d like to see that article, please leave a comment and applause so I know there is interest.

Thank you for reading!

These have been extremely volatile and uncertain times, so it’s unsure whether the MFMS will continue to outperform the SP500.