Solactive releases new Index including the top growing 50 US companies for SoFi ETF
Solactive is pleased to announce the release of the Solactive SoFi US 50 Growth Index that is utilized as the underlying of the SoFi 50 ETF [Ticker: SFYF].
Following the launch of two groundbreaking ETFs with a radical zero-fee1 waiver approach, SoFi again appointed Solactive as its Index provider of choice for the release of the new SoFi 50 ETF. The underlying index, the Solactive SoFi US 50 Growth Index, selects the top 50 equities out of a 1.000 stock universe according to a proprietary Growth Score. The ETF allows investors to specifically invest in players that bear a sturdy growth trajectory, and that are expected to keep this pace.
Solactive derives the index universe from a combination of both the Solactive SoFi US 500 Growth Index and Solactive SoFi US Next 500 Growth Index, which together make up 1.000 of the largest US stocks according to market capitalization. Both the Solactive SoFi US 500 Growth Index and Solactive SoFi US Next 500 Growth Index were used as the underlying for the two aforementioned zero-fee1 waiver ETFs.
The selection process involves a screening based on three fundamental factors, which are the companies’ sales and net income growth over the previous 12 months and a forward-looking estimation of the company’s 12-month net income growth to identify the top 50 stocks. Each of the three factors contributes equally to a stock’s respective Growth Score. To limit index turnover, the index includes a 20% buffer rule.
Timo Pfeiffer, Head of Research at Solactive, comments: “We are very proud to be working with SoFi again. Immediately after starting the collaboration for the first two launches, one could feel that both Solactive and SoFi share the same disruptive spirit. The result created a lot of noise in the whole ETF industry. Now, the release of the Solactive SoFi US 50 Growth Index focusses on another strength of both companies: their innovation potential.”
Anthony Noto, CEO of SoFi, comments: “As newcomers to the ETF space, we at SoFi extensively researched the best partners to make our plan a reality. All signs pointed to Solactive. We’re thrilled to be partnering with Solactive to bring this new fund, in addition to the SoFi Select 500 and SoFi Next 500, to market.”
The SoFi 50 ETF (SFYF) will be listed on the NYSE Arca on 8th of May.