The SoFi Social 50 ETF (ticker: SFYF) is an exchange-traded fund that tracks the SoFi Social 50 Index, which comprises the 50 most widely held U.S.-listed equity securities in self-directed brokerage accounts.
SFYF’s Top Holdings Include:
- NVIDIA Corp. (10.60%)
- Tesla Inc. (9.55%)
- Palantir Technologies Inc. (5.42%)
- Alphabet Inc. Class A (5.00%)
- Amazon.com Inc. (4.89%)
- Apple Inc. (4.72%)
- Microsoft Corp. (4.59%)
- Meta Platforms Inc. (4.34%)
- Berkshire Hathaway Inc. Class B (3.95%)
- Costco Wholesale Corp. (3.29%)
The fund has a net expense ratio of 0.29% and total net assets of approximately $20.4 million.
SFYF is managed by SoFi and was launched on May 8, 2019.
The fund’s investment strategy focuses on capturing the collective sentiment of individual investors by investing in the most popular stocks held in self-directed accounts.
Is SoFi Social 50 ETF profitable?
The SoFi Social 50 ETF (ticker: SFYF) is an exchange-traded fund that tracks the SoFi Social 50 Index, comprising the 50 most widely held U.S.-listed equity securities in self-directed brokerage accounts.
Over the past year, SFYF has demonstrated strong performance, with a 1-year return of approximately 32.11% as of December 30, 2024.
However, it’s important to note that the fund has exhibited higher volatility compared to its benchmark index, with a standard deviation of 32.9% over a five-year period, indicating more significant price fluctuations.
Additionally, SFYF has a net expense ratio of 0.29%, which is relatively low among its peers.
While SFYF has shown strong returns, its higher volatility may not align with all investors’ risk tolerance. It’s advisable to assess your investment objectives and consult with a financial advisor before making investment decisions.
Who is SoFi Social 50 ETF CEO?
The SoFi Social 50 ETF (SFYF) is managed by SoFi, a financial technology company. The CEO of SoFi is Anthony Noto. He has served as the CEO of SoFi since 2018, guiding the company’s expansion into various financial products, including ETFs, personal loans, mortgages, and investment management services.
Sofi Social 50 ETF Review
The SoFi Social 50 ETF (SFYF) has garnered attention for its unique approach to investing. Here’s a review based on various key factors:
1. Investment Strategy
- The ETF tracks the SoFi Social 50 Index, which consists of the 50 most widely held U.S.-listed stocks in self-directed brokerage accounts. The goal is to capture the collective sentiment of individual investors by focusing on stocks that are popular among retail traders, which can reflect broader market trends and sentiment.
- This approach might appeal to investors looking to tap into retail investor behavior, which has been a significant force in recent years.
2. Performance
- Over the past year (as of December 30, 2024), SFYF has demonstrated strong performance, with a 1-year return of about 32.11%.
- However, it’s important to note that while the fund has shown positive returns, it has exhibited higher volatility compared to broader market indices. This means there can be significant price swings, which might be a concern for risk-averse investors.The expense ratio of 0.29% is relatively low, which can be favorable for long-term investors looking to minimize fees.
3. Risk & Volatility
- Volatility is one of the key characteristics of the SoFi Social 50 ETF. Due to its focus on stocks popular with individual investors, some of these stocks may experience price swings based on market trends, news, and sentiment.
- The fund’s standard deviation of returns (a measure of volatility) over five years is higher than some other ETFs, which means it may be more susceptible to large price changes.
4. Suitability for Investors
- Growth Investors: SFYF may appeal to those looking for exposure to growth-oriented companies that are favored by retail investors, particularly in the technology and consumer sectors.
- Risk-Tolerant Investors: Given the volatility and higher risk associated with some of the fund’s holdings, this ETF may be better suited for investors who can tolerate short-term price fluctuations.
- Long-Term Investors: While the ETF’s approach is unconventional, its solid performance over the past year suggests that it could potentially deliver good returns for those willing to take on risk.
5. Final Thoughts
Pros:
- Strong historical performance with a focus on high-growth, popular stocks.
- Low expense ratio (0.29%) compared to many other ETFs.
- Offers exposure to innovative technology and consumer-driven stocks.
Cons:
- Higher volatility than some other ETFs, which may not suit conservative investors.
- The fund’s reliance on retail investor sentiment may expose it to more short-term speculation rather than long-term fundamentals.
Overall, the SoFi Social 50 ETF is a compelling option for those looking to gain exposure to high-growth companies favored by retail investors. However, its volatility and unique strategy may not align with all investment profiles, particularly for those who are more risk-averse or prefer more traditional, index-based funds. It’s essential to assess your investment goals and risk tolerance before adding this ETF to your portfolio.
Sofi Social 50 ETF Share Price
As of the latest available data, the SoFi Social 50 ETF (SFYF) has a share price of $45.05.
Please note that ETF prices fluctuate throughout the trading day due to market conditions, so the share price may vary.
Sofi Social 50 ETF Returns
The SoFi Social 50 ETF (SFYF) has demonstrated notable performance since its inception. Here’s a summary of its annual returns:
| Year | SFYF Return | Benchmark Return |
| 2020 | 33.6% | 2.8% |
| 2021 | 35.8% | 39.8% |
| 2022 | -39.8% | -18.1% |
| 2023 | 118.1% | 55.09% |
These figures highlight SFYF’s significant volatility, with substantial gains in 2023 following a sharp decline in 2022.
Is SoFi Social 50 ETF Profitable?
The SoFi Social 50 ETF (SFYF) has demonstrated strong performance in recent years, but its profitability depends on factors like market conditions, risk tolerance, and investment strategy. Here’s a breakdown of its profitability:
Recent Performance
The SoFi Social 50 ETF has delivered solid returns over the past few years. For example:
- 2023: It saw a remarkable 118.1% return.
- 2022: It experienced a -39.8% return.
- 2021: It had a 35.8% return.
- 2020: It saw a 33.6% return.
These numbers reflect both the high growth potential and volatility of the ETF.
Volatility
- The ETF’s profitability can be highly volatile, as shown by the large swing from a positive return in 2021 to a significant loss in 2022.
- Volatility in the ETF is mainly due to its focus on stocks that are popular among retail investors, many of which are in growth sectors like technology. These stocks tend to experience substantial fluctuations, meaning there can be both high returns and sharp declines.
Risk & Profitability
- While the SoFi Social 50 ETF has been profitable in terms of capital appreciation, it may not be the right choice for conservative investors because of its volatility.
- Its profitability depends on market sentiment, especially the retail investor-driven trend that the ETF tracks. This can lead to high rewards during bull markets but also significant losses during market downturns.
Long-Term Outlook
- Over the long term, the fund has provided notable returns, but its performance could be influenced by market cycles, the performance of tech stocks, and the behavior of retail investors.
- If you’re seeking growth and are willing to tolerate risk and volatility, the SoFi Social 50 ETF may be a profitable choice. However, if you’re looking for steady, consistent income or low-risk investments, it may not be ideal.
Conclusion:
The SoFi Social 50 ETF has shown potential for profitability, especially in periods of market growth. However, its high volatility means that its profitability can fluctuate significantly. It is suitable for investors who are comfortable with risk and looking for growth through exposure to popular stocks among retail investors.
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