Online lending platform SoFi announced on Thursday the availability of two new exchange-traded funds (ETFs), the SoFi Select 500 ETF (NYSE: SFY) and the SoFi Next 500 ETF (NYSE: SFYX). According to SoFi, both funds have fee waivers in place that lower total fund expenses to zero through at least June 30, 2020.
“SFY tracks the performance of the Solactive SoFi US 500 Growth Index, weighing each company based on three key growth signals – top-line revenue growth, net income growth, and forward-looking consensus estimates of net income growth. Traditional indexed ETFs often weigh only market capitalization.”
Meanwhile, SoFi Next 500 ETF (SFYX) is composed of 500 mid-cap U.S. companies, and similarly, each stock’s contribution to the ETF is based on the company’s growth rates.
“SFYX tracks the performance of the Solactive SoFi US Next 500 Growth Index, using the same criteria that underpins SFY, focusing on the 501st through the 1000th largest domestic companies.”
Speaking about the releases, SoFi CEO, Anthony Noto, stated:
“When it comes to achieving financial independence, investing isn’t a choice — it’s a requirement. We designed these ETFs to make it as simple and easy as possible for anyone to start investing for the future, without any fees dragging on your returns.”
SoFi also reported that both funds will be listed on the NYSE Arca and are designed to track the performance of indexes developed by Solactive AG. SoFi partnered with Tidal ETF Services for the trust, strategy, administrative and operational aspects of the ETFs. The online lender then added:
“SoFi’s entry into the ETF space comes shortly after the general availability of SoFi Invest, an investing platform that offers both Active (brokerage) and Automated (robo-advisor) investing with no commissions or management fees. SoFi’s new ETFs will be available through SoFi Invest, as well as through any other brokerage account.”