Should SoFi Select 500 ETF (SFY) Be on Your Investing Radar?

If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the SoFi Select 500 ETF (SFY), a passively managed exchange traded fund launched on April 11, 2019.The fund is sponsored by Sofi. It has amassed assets over $562.09 million, making it one of the average sized ETFs attempting to match the Large Cap Growth segment of the US equity market.Why Large Cap GrowthLarge cap companies usually have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows 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. Something to keep in mind is the higher level of volatility that is affiliated with growth stocks. Even though growth stocks are more likely to outperform their value counterparts in strong bull markets, value stocks have a record of delivering better returns in almost all markets than growth stocks. CostsCost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.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 0.49%.Sector Exposure and Top HoldingsETFs 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 41.3% of the portfolio. Financials and Healthcare round out the top three.Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 14% of total assets, followed by Microsoft Corp (MSFT) and Broadcom Inc (AVGO).The top 10 holdings account for about 44.03% of total assets under management.Performance and RiskSFY 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 return is roughly 23.42% so far this year and it's up approximately 19.98% in the last one year (as of 11/11/2025). In the past 52-week period, it has traded between $90.76 and $135.12.The ETF has a beta of 1.07 and standard deviation of 17.46% for the trailing three-year period. With about 502 holdings, it effectively diversifies company-specific risk.AlternativesSoFi Select 500 ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, SFY is an excellent option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well. The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $203.54 billion in assets, Invesco QQQ has $408.77 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.2%.Bottom-LineAn increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SoFi Select 500 ETF (SFY): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks