SFY Profile
The SoFi Select 500 ETF is a fund designed to provide investors with exposure to a diversified portfolio of large-cap U.S. equities. The ETF generally invests at least 80% of its total assets, excluding collateral from securities lending, in the securities that comprise its underlying index. This index is constructed to reflect the performance of 500 of the largest publicly listed companies in the United States, selected based on a proprietary blend of market capitalization and fundamental factors.
The underlying index employs a rules-based methodology to determine its constituents, aiming to capture a broad representation of the U.S. equity market. It integrates both market capitalization and fundamental metrics to weight its components, which provides a nuanced view of the market's largest companies. This approach not only considers the size of the companies but also evaluates their financial health and operational performance, ensuring a diversified and balanced representation of leading U.S. firms.
The SoFi Select 500 ETF is designed to offer investors a strategic way to gain exposure to major U.S. corporations, which can be beneficial for building a core equity position in a portfolio. By investing in this ETF, investors gain access to a wide array of sectors and industries represented by some of the largest and most established companies in the U.S. market. The fund’s diversified approach helps mitigate individual stock risk while providing potential growth opportunities linked to the performance of large-cap stocks.
As a passively managed fund, the SoFi Select 500 ETF aims to closely track the performance of its underlying index with minimal active management. This results in lower management fees compared to actively managed funds, making it a cost-effective option for investors seeking broad market exposure. The fund's strategy focuses on maintaining alignment with its index to deliver returns that reflect the performance of the top U.S. companies based on a combination of size and financial fundamentals.
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