SoFi Slides to 60th in Trading Volume as ETF Strategy Navigates Volatility and Leverage Risks

On August 14, 2025, SoFi Technologies (SOFI) closed at $15.12, down 2.18%, with a trading volume of $1.22 billion, a 25.07% drop from the previous day. The stock ranked 60th in market activity. SoFi announced monthly distributions for its SoFi Enhanced Yield ETF (THTA), launched in November 2023, which combines U.S. government securities and credit spread options to generate yield. The ETF’s strategy aims to provide income through structured derivatives, though investors face risks tied to market volatility and leverage.

The ETF, managed in partnership with Tidal Investments and ZEGA Financial, targets enhanced returns via a mix of Treasury instruments and options strategies. However, the structure exposes investors to potential losses from market fluctuations, leverage, and liquidity constraints. SoFi emphasized its broader mission to innovate financial products, aligning with its focus on thematic and income-driven offerings. Recent regulatory and market dynamics, including interest rate shifts, could influence the ETF’s performance and distribution stability.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to 2025 delivered a compound annual growth rate of 6.98%, with a maximum drawdown of 15.59%. While the approach showed steady growth, the mid-2023 decline underscores the volatility inherent in high-volume trading strategies, highlighting the need for robust risk management.