Is SoFi Select 500 ETF (SFY) a Good Investment Choice Right Now

Los Angeles: The SoFi Select 500 ETF (SFY) launched on April 11, 2019, and aims to give investors broad access to large-cap growth stocks. It’s a smart beta ETF, which means it doesn’t just follow the usual market cap-weighted indexes. Instead, it tries to pick stocks based on specific characteristics that could lead to better performance.

This fund has gathered over $975 million, making it a solid player in the large-cap growth space. Managed by SoFi, it aims to match the performance of the Solactive SoFi US 500 Growth Index, which tracks 500 of the biggest U.S. companies.

When it comes to costs, SFY is pretty affordable with an expense ratio of just 0.05%. That’s a big plus since lower fees can lead to better returns over time. The fund also has a 12-month trailing dividend yield of 0.47%.

SFY is heavily invested in the Information Technology sector, which makes up about 42.10% of its portfolio. Its top holdings include big names like Nvidia, Microsoft, and Amazon, which together account for a significant portion of the fund.

So far this year, SFY has returned about 1.03%, and over the last 12 months, it’s up around 30.98%. It’s been trading between $84.45 and $113.87 in the past year, showing some solid movement.

If you’re looking for alternatives, there are other ETFs like the Vanguard Growth ETF and Invesco QQQ that you might want to check out. They also focus on large-cap growth but have different expense ratios and asset sizes.

In short, if you’re interested in a low-cost ETF that targets large-cap growth, the SoFi Select 500 ETF could be a great option to consider. Just make sure to do your homework and see if it fits your investment goals.