SPAC Comeback Story: ETFs SoFi, Opendoor, and MP Materials Outperform Nvidia in Surprising Rally

Several ETFs have benefited from the unexpected rebound of SoFi Technologies, Opendoor Technologies, and MP Materials, which came public through prominent SPAC mergers. These ETFs include ARKF, REMX, and VTWO, which hold significant exposure to these names. The firms' strategic changes have enhanced their fundamentals, erasing investor doubt and making them attractive again. The ETFs that held out during the SPAC implosion are now beating expectations and keeping pace with the returns of tech giants.

Several ETFs have seen significant gains due to the unexpected rebound of SoFi Technologies (SOFI), Opendoor Technologies (OPEN), and MP Materials (MP), which came public through prominent SPAC mergers. These ETFs, including ARKF, REMX, and VTWO, hold substantial exposure to these names and have benefited from the firms' strategic changes that have enhanced their fundamentals.

In the first six months of 2025, SoFi has grown by 37%, Opendoor by 458%, and MP Materials by 63%, outpacing Nvidia's (NVDA) 20% return over the same period [1]. The firms' strategic pivots have led to improved financial performance, making them attractive again for investors.

ETFs That Remained and Gained

Several thematic and growth ETFs have held significant exposure to these names and are now reaping the benefits of their comeback:

- ARK Fintech Innovation ETF (ARKF): Cathie Wood's ARKF has long been a SoFi bull. As SoFi expands its digital banking ecosystem and continues to grow its user base, the stock's turnaround is directly lifting ARKF's returns [1].
- VanEck Rare Earth and Strategic Metals ETF (REMX): Almost 12% of the fund’s holdings are dedicated to MP Materials [1].
- Vanguard Russell 2000 ETF (VTWO): This Russell 2000 index-tracking ETF has exposure to Opendoor, which is a part of the index [1].

Why This Group Is Backing Up

The recent bounce isn't all meme magic or short squeezes. All three companies have made strategic changes that enhanced their fundamentals:

- SoFi Technologies: Evolved from a fintech “super app” into a full-fledged digital bank. Its growth in users, lending business, and cross-selling strategy has begun to pay off, erasing investor doubt [1].
- MP Materials: Surfing a macro wave—its rare-earth offerings are critical to anything from EVs to defense systems. With U.S.–China tensions still on, MP’s local manufacturing has become even more prized [1].
- Opendoor Technologies: Emerged as the sole remaining major player in the iBuying sector. Following the exits of Zillow and Redfin, Opendoor has rationalized and is reaping the benefits of a modestly recovering housing market [1].

ETF Takeaway: Sometimes Diamond Hands Work

For those ETFs that held on during the SPAC implosion, 2025 is delivering some serious redemption. As the broader market discounted Chamath’s 2021 class of SPACs as overhyped disappointments, long funds in these names are now beating expectations, and, in a few instances, keeping pace with the returns of tech giants [1].

However, this is not a SPAC nostalgia trip. If these stocks keep delivering, their ETF supporters might be reading from the front row of a secular revival, one that combines meme potential with actual, quantifiable performance.

References

[1] https://www.benzinga.com/etfs/specialty-etfs/25/07/46531133/spac-tacular-comeback-etfs-with-sofi-opendoor-ride-2025-s-most-surprising-rally-that-beat-nvidia
[2] https://www.inkl.com/news/spac-tacular-comeback-etfs-with-sofi-opendoor-ride-2025-s-most-surprising-rally-that-beat-nvidia
[3] https://site.financialmodelingprep.com/market-news/opendoor-technologies-financial-efficiency-analysis