SoFi is counting on a new ETF to make Fridays a little sweeter. The financial services company introduced its SoFi Weekly Income ETF (TGIF) in an email to investors, where it stated that the goal of the actively managed fixed income fund is to pay investors a dividend every Friday.
As long as shares are purchased by Tuesday, investors will receive a distribution on Friday, according to SoFi. The net expense ratio is 59 basis points and invests in “U.S.-dollar denominated investment grade and non-investment grade (also known as ‘high-yield’ or ‘junk’) fixed income securities and instruments,” according to a factsheet.
"The fund intends to pay out dividends and interest income, if any, weekly. There is no guarantee these payouts will be made," according to a company blog post.
The ETF is “another creative design for a fund,” said David Goldstone, head of research at Backend Benchmarking. “SoFi is clearly looking for new ways to attract investors with its rollout of this and other ETF products over the past year.” He added that it’s a little early to tell whether the dividend payments will be enough to entice investors.