Is SoFi Select 500 ETF (SFY) a Strong ETF Right Now?

Designed to provide broad exposure to the Style Box - Large Cap Growth category of the market, the SoFi Select 500 ETF (SFY) is a smart beta exchange traded fund launched on 04/11/2019.

What Are Smart Beta ETFs?

The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.

Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.

If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.

By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.

Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.

Fund Sponsor & Index

SFY is managed by Sofi, and this fund has amassed over $563.24 million, which makes it one of the average sized ETFs in the Style Box - Large Cap Growth. This particular fund, before fees and expenses, seeks to match the performance of the SOLACTIVE SOFI US 500 GROWTH INDEX .

The Solactive SoFi US 500 Growth Index follows a rules-based methodology that tracks the performance of 500 of the largest U.S.-listed companies weighted based on a proprietary mix of their market capitalization and fundamental factors.

Cost & Other Expenses

Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.

Operating expenses on an annual basis are 0.05% for SFY, making it one of the least expensive products in the space.

SFY's 12-month trailing dividend yield is 1.00%.

Sector Exposure and Top Holdings

ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.

Representing 42.2% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Healthcare and Financials round out the top three.

Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 13.6% of total assets, followed by Broadcom Inc (AVGO) and Microsoft Corp (MSFT).

Its top 10 holdings account for approximately 41.77% of SFY's total assets under management.

Performance and Risk

Year-to-date, the SoFi Select 500 ETF has lost about -3.76% so far, and is up roughly 39.7% over the last 12 months (as of 04/08/2026). SFY has traded between $93.77 $135.31 in this past 52-week period.

The fund has a beta of 1.08 and standard deviation of 17.18% for the trailing three-year period. With about 506 holdings, it effectively diversifies company-specific risk .

Alternatives

SoFi Select 500 ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Growth segment of the market. There are other ETFs in the space which investors could consider as well.

Vanguard Growth Index Fund ETF Shares (VUG) tracks CRSP U.S. Large Cap Growth Index and the Invesco QQQ (QQQ) tracks NASDAQ-100 Index. Vanguard Growth Index Fund ETF Shares has $188.04 billion in assets, Invesco QQQ has $379.74 billion. VUG has an expense ratio of 0.03% and QQQ changes 0.18%.

Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Growth

Bottom Line

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.

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SoFi Select 500 ETF (SFY): ETF Research Reports

This article originally published on Zacks Investment Research (zacks.com).

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