Does This Social ETF Deserve A Place In Your Portfolio?

The wisdom of the crowd [View in browser]( [The Juice Logo] BROUGHT TO YOU BY: [Logo]( Proprietary Data Insights Top Financial Pro Stock Searches This Month Rank Ticker Name Searches #1 NVDA Nvidia 384 #2 CMG Chipotle Mexican Grill 125 #3 TSLA Tesla 105 #4 CRWD Crowdstrike 85 #5 MARA Marathon Digital 77 #ad [Diversify Your Portfolio: Beyond Stocks]( Brought to you by [Streetlight Confidential]( [Next Big AI Investment Found]( [ Streetlight Confidential - Next Big AI Investment Found]( AI-focused companies have the potential to deliver early investors amazing returns. [Click here now to check out the latest news...]( Does This Social ETF Deserve A Place In Your Portfolio? At The Juice, we like digging deep into all types of ETFs, comparing them to the benchmarks we most strongly suggest for long-term investors. We last did this with a couple of WisdomTree funds in [2 ETFs For Growth And AI Exposure](. Check out that installment after you read today’s Juice. In the above-linked story, we concluded: The ETF world is packed. In all honesty, you should probably stay away from 98% of the tickers out there. Especially if they get too cute. This said, there are some The Juice thinks are worth your time. Sometimes for potential investment. Sometimes for education purposes. Sometimes both. While we tend to rally around a core of low-cost, broad market ETFs, there are times when we actually like an alternative ETF. When we came across the SoFi Social 50 ETF (SFYF), we figured it would be another fund to throw in the too cute pile. However, upon further inspection, maybe we were wrong. For starters, SFYF’s [expense ratio]( is a reasonable 0.29%. This makes it worth a look. Anything higher than 0.50% might disqualify it instantly. Here’s how SoFi constructs the ETF, pulling directly from the company’s [marketing](: - “SFYF invests in the companies that are most widely held by members of the SoFi Active Invest community. It contains the top 50 US companies measured by the number of accounts that invest in that stock.” - “Once the top 50 stocks are chosen, they are weighted according to the amount of money members have invested in the companies.” - “Companies are added and removed monthly based on investor behavior. Stocks that become popular may make the cut while those that fall out of favor may get kicked out.” So, essentially, a wisdom of the crowd approach. As for holdings, as it turns out, the 50 stocks check many of the boxes in terms of the categories The Juice advocates for long-term investing: - All of the Magnificent Seven stocks are presented and accounted for. - There are tons of household names/dividend payers, including Costco (COST), Walt Disney (DIS), Nike (NKE), Target (TGT), Walmart (WMT), ExxonMobil (XOM) and Pfizer (PFE). Taken together with the Mag 7, this categorization really comprises the majority of SFYF. - Even Realty Income (O) makes an appearance. Not a huge shock, given that many younger investors (who are presumably drawn to a platform such as SoFi) are actually into [dividend growth investing](. They’re not all clueless speculators. - There’s also a healthy bit of call it new tech and speculative exposure, including AMC Entertainment (AMC), GameStop (GME), Coinbase (COIN), Airbnb (ABNB), Beyond Meat (BYND), DraftKings (DKNG) and Reddit (RDDT). - From there, solid names like Advanced Micro Devices (AMD) and ARM Holdings (ARM) round out the list. Because it’s weighted by popularity (using the amount of money SoFi investors have in each stock as the measure), the weighting doesn’t go too far in the speculative direction. As of mid-August, SFYF’s top ten names (with weighting) are: - Nvidia (NVDA) (9.50%) - Tesla (TSLA) (9.15%) - Palantir Technologies (PLTR) (5.27%) - Microsoft (MSFT) (5.08%) - Meta Platforms (META) (5.00%) - Alphabet (GOOGL) (4.86%) - Apple (AAPL) (4.84%) - Amazon.com (AMZN) (4.81%) - Rivian Automotive (RIVN) (4.06%) - Berkshire Hathaway Inc (BRK/B) (3.78%) The top ten account for more than 56% of the fund, relegating names such as BYND and AMC to considerably less than 1.0% concentrations. As for performance, SFYF has held up well against, if not performed much better than the SPDR S&P 500 ETF (SPY) and Invesco QQQ Trust ETF (QQQ): ETF Last week YTD 1-year SFYF +11.4% +14.8% 19.2% SPY +4.3% +12.8% 19.5% QQQ +6.2% 11.9% 22.2% Expand the time horizon and you get similar impressive results. Of course, SFYF has its share of poor performers, but so does SPY and QQQ. And the beauty of SFYF’s approach is that if the crowd turns sour on a stock, it gets thrown out of the rotation quickly. [Buy this Fund TODAY for 10.5% Monthly Dividends]( One of my favorite income plays right now is an under-the-radar fund that pays an incredible 10.5% monthly dividend. I'm so excited about this fund that I've made it a core holding in my "8% Monthly Payer" portfolio - an easy-to-buy collection of stocks and funds that could hand you $3,330+ in dividend payouts every single month! [Click here to learn more.]([Ad] The Bottom Line: While we’re not saying you should put your entire retirement fund into the SoFi Social 50 ETF, we are saying that, as cute ETFs go, this is one of the better ones we have come across. It pleasantly surprised us. There’s something to be said for pooling the intelligence and stock picks of investors. Turns out it can create a portfolio with meaningful variety, if not decent or better diversification. 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