Launched in November of 2023, SoFi (NASDAQ:SOFI), a multi-faceted Fintech that provides banking services, introduced an ETF [exchange traded fund] that aims to emulate the higher returns expected from bigger money.
The ETF, THTA, was launched in partnership with Tidal Investments LLC and ZEGA Financial LLC. Zega is a registered investment advisor and manager that specializes in derivatives.
The fund seeks current income by combining a strategy of holding U.S. government securities, including U.S. Treasury Bills and U.S. Treasury Bonds, with a “credit spread” option strategy that aims to generate “enhanced yield.”
The “option-powered strategy” was described as follows at the launch:
“The investing landscape has expanded beyond the traditional 60/40 to include assets that can offer more targeted objectives and increased diversification benefits. The SoFi Enhanced Yield ETF was designed as a modern, alternative strategy that can cater to investors seeking potentially higher-yielding investment options.”
The distribution per share for shareholders of record this month is 13.07% of $.2196/share. This will be paid on April 18th. The ETF has a net expense ratio of 0.49%.
SoFi has partnered to launch multiple ETFs, but not all of them have been successful, as several were closed in February.
