SoFi Doubles ETF Suite With Gig Economy, Growth Funds
SoFi, the online lender turned exchange traded funds issuer, doubled the size of its new ETF lineup Wednesday with the debuts of two new funds.
SoFi's newest ETFs come to market less than a month after the San Francisco-based company introduced the first zero-fee ETFs.
GIGE, which is managed by Toroso Investments, “is designed to seek long term capital appreciation by capturing exposure to the economic shift toward gig-oriented companies,” according to a statement from SoFi.
That new ETF debuts just ahead of Uber's initial public offering and just weeks after Lyft, Inc. (NASDAQ:LYFT) went public. Ride-hailing firms Lyft and Uber are viewed as two of the major forces in the gig economy.
Why It's Important
Lyft, shares of which tumbled nearly 11 percent and are down more than 32 percent since the IPO, is part of GIGE's roster. Other familiar names in the new ETF include Apple Inc. (NASDAQ:AAPL), Amazon.com Inc. (NASDAQ:AMZN), PayPal Holdings (NASDAQ:PYPL) and Twitter Inc. (NYSE:TWTR).
GIGE “is structured so that most companies that IPO can be included in the portfolio within 31 days of their IPO, as opposed to traditional passive funds that must likely wait 60 to 90 days to include a new IPO,” according to SoFi.
That means Uber could find its way into GIGE soon after its upcoming IPO. GIGE charges 0.59 percent per year, or $59 on a $10,000 stake.
The SoFi 50 ETF provides exposure to the 50 largest domestic companies as measured by top-line revenue growth, net income growth, and forward-looking consensus estimates of net income growth. That new ETF's underlying index is equally weighted.
SYFE charges 0.29 percent per year.
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.