SoFi filed a supplement Tuesday with the Securities and Exchange Commission to continue to waive management fees on two of its exchange traded funds through at least the first half of 2021. The current prospectuses for the SoFi Select 500 ETF (SFY) and SoFi Next 500 ETF (SFYX) had waived fees through June 30, 2020.
Last year, SoFi, an online financial services firm, became the first company to offer zero-fee ETFs, shaking up the asset management industry. Toroso Investments serves as the investment advisor for the two funds and hired Exponential ETFs to run day-to-day operations.
Early last year SoFi launched SoFi Invest, bringing it in competition with trading app Robinhood, among others. The firm bungled a fund swap related to the new funds, generating tax bills for investors as it moved to its own ETFs. It also launched a cash management product, SoFi Money, joining a wave of fintechs seeking to add funds to their ledgers in exchange for interest rate basis points for customers.
SoFi also filed supplements with the SEC to change the underlying index of its SoFi 50 ETF, a smart beta strategy with an expense ratio of 0.29%, from the Solactive SoFi US 50 Growth Index to the SoFi Social 50 Index. The Solactive SoFi US 50 Growth Index uses a custom blend of three financial metrics that focus on how fast a company is growing, including sales, net income growth and consensus estimates of net income growth. The new index is designed to track the performance of the top 50 U.S. equity securities on the basis of account ownership across SoFi’s investment platform.
The company recently announced that it was continuing to staff up a new office in Jacksonville, Fla., despite the pandemic.