Fintech unicorn SoFi announced on Tuesday the launch of its newest exchange-traded funds (ETFs), which are the SoFi Gig Economy ETF (NASDAQ: GIGE) and the SoFi 50 ETF (NYSE: SFYF). According to SoFi, the ETFs will further extend its approach of providing members access to investment opportunities. The two ETFs are described below.
The SoFi Gig Economy ETF (GIGE): An actively managed fund, advised by Toroso Investments, that is designed to seek long term capital appreciation by capturing exposure to the economic shift toward gig-oriented companies. The fund is structured so that most companies that IPO can be included in the portfolio within 31 days of their IPO, as opposed to traditional passive funds that must likely wait 60 to 90 days to include a new IPO.- The SoFi 50 ETF (SFYF): Tracks the performance, before fees and expenses, of the Solactive SoFi US 50 Growth Index, by capturing the performance of 50 of the 1,000 largest publicly-traded U.S. companies that have the highest growth score based on three key signals: top-line revenue growth, net income growth, and forward-looking consensus estimates of net income growth. The index is equally weighted.
While sharing details about the two products, SoFi CEO, Anthony Noto, stated:
“Our members are excited by high-growth and gig economy companies because these companies are in many cases part of their lives. We’re giving our members a way to get started investing by buying what they know and investing in themselves.”
SoFi then added that GIGE will be listed on Nasdaq with an expense ratio of 59 basis points. SFYF, which is designed to track the performance of an index developed by Solactive AG, will be listed on the NYSE Arca and has an expense ratio of 29 basis points.
