SoFi Select 500 ETF Launch and Performance Insights

SoFi Select 500 ETF (SFY) offers a new approach to large-cap investments. With a focus on smart beta strategies, its performance indicates both potential and risks for investors in this ETF market.

Date: 20-03-2025

AI Rating: 6

ETF Overview
SoFi Select 500 ETF (SFY) launched in 2019, providing a smart beta strategy aimed at outperforming the traditional market cap-weighted indexes. With assets over $454.21 million, it reflects interest in this investment approach.

Performance Metrics
SFY shows a performance of a -5.19% downturn recently, yet has appreciated approximately 13.91% over the past year as of March 19, 2025. The fact that it has traded between $88.15 and $114.95 within the last 52 weeks indicates some volatility.

Expense Ratios and Yield
The ETF boasts low operating expenses at 0.05%, which is favorable for investors looking to maximize returns. The 12-month trailing dividend yield of 0.50% also provides some income potential, albeit modest.

Sector Allocation
SFY has its largest allocation in the Information Technology sector, which comprises 40.20% of its portfolio. This concentration poses a risk as changes in this sector can significantly impact fund performance.

Top Holdings
Key holdings include Nvidia Corp (NVDA), which accounts for approximately 13.94%, along with Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). These holdings suggest that the ETF may be highly correlated with the tech industry's performance.

Investors considering SFY are faced with both its attractive expense ratio and the underlying volatility illustrated by its current negative performance and significant sector concentration. The fund's smart beta approach represents a calculated risk for those aiming for higher returns.

Stocks: SFY NVDA MSFT AMZN