Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the SoFi Select 500 ETF (SFY) is a passively managed exchange traded fund launched on 04/11/2019.

The fund is sponsored by Sofi. It has amassed assets over $982.29 million, making it one of the average sized ETFs attempting to match the Large Cap Growth segment of the US equity market.

Companies that fall in the large cap category tend to have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.

While growth stocks do boast higher than average sales and earnings growth rates, and they are expected to grow faster than the wider market, investors should note these kinds of stocks have higher valuations. Additionally, growth stocks have a greater level of risk associated with them. Compared to value stocks, growth stocks are a safer bet in a strong bull market, but don’t perform as strongly in almost all other financial environments.

When considering an ETF’s total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.

Annual operating expenses for this ETF are 0.05%, making it one of the least expensive products in the space.

It has a 12-month trailing dividend yield of 0.47%.

ETFs offer a 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.

This ETF has heaviest allocation to the Information Technology sector–about 42.90% of the portfolio. Financials and Healthcare round out the top three.

Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 16.07% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).

The top 10 holdings account for about 43.28% of total assets under management.

SFY seeks to match the performance of the SOLACTIVE SOFI US 500 GROWTH INDEX before fees and expenses. 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.

The ETF has gained about 31.24% so far this year and was up about 30.62% in the last one year (as of 12/30/2024). In the past 52-week period, it has traded between $83.05 and $113.87.