The SoFi Enhanced Yield ETF will offer a
monthly income solution for investors via investments in treasury
bills and options, actively managed by ZEGA Financial
SoFi Technologies, Inc. (“SoFi”), the digital personal finance
company, today announced the launch of the SoFi Enhanced Yield ETF
(NYSE Arca: THTA).
With THTA, SoFi is providing a distinct way to generate monthly
income for investors who are seeking a distinct way to do so, with
the fund distributing monthly distributions via a portfolio of one
to three month short-term Treasury Bills while also implementing a
data-driven options overlay strategy.
Funds & Flexibility
THTA provides a simple, liquid way to diversify one's portfolio
by introducing what is a fast-growing emerging asset class:
options-powered income strategies.
The new fund will also take advantage of tax loss harvesting
opportunities in addition to utilizing ZEGA options strategy.
THTA & Portfolio Management
The SoFi Enhanced Yield ETF’s options strategy will be actively
managed by ZEGA Financial, a leader in options-focused
investing.
The investing landscape has expanded beyond the traditional
60/40 to include assets that can offer more targeted objectives and
increased diversification benefits. The SoFi Enhanced Yield ETF was
designed as a modern, alternative strategy that can cater to
investors seeking potentially higher-yielding investment
options.
About SoFi
SoFi (NASDAQ: SOFI) is a member-centric, one-stop shop for
digital financial services on a mission to help people achieve
financial independence to realize their ambitions. The company’s
full suite of financial products and services helps its more than
6.9 million SoFi members borrow, save, spend, invest, and protect
their money better by giving them fast access to the tools they
need to get their money right, all in one app. SoFi also equips
members with the resources they need to get ahead – like career
advisors, Certified Financial Planner™ (CFP®) professionals,
exclusive experiences and events, and a thriving community – on
their path to financial independence.
SoFi innovates across three business segments: Lending,
Financial Services – which includes SoFi Checking and Savings, SoFi
Invest, SoFi Credit Card, SoFi Protect, and SoFi Insights – and
Technology Platform, which offers the only end-to-end vertically
integrated financial technology stack. SoFi Bank, N.A., an
affiliate of SoFi, is a nationally chartered bank, regulated by the
OCC and FDIC and SoFi is a bank holding company regulated by the
Federal Reserve. The company is also the naming rights partner of
SoFi Stadium, home of the Los Angeles Chargers and the Los Angeles
Rams. For more information, visit SoFi.com or download our iOS and
Android apps.
Disclosures
SoFi Invest refers to the three investment and trading platforms
operated by Social Finance, Inc. and its affiliates (described
below). Individual customer accounts may be subject to the terms
applicable to one or more of the platforms below.
1) Automated Investing and advisory services are provided by
SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi
Wealth“). Brokerage services are provided to SoFi Wealth LLC by
SoFi Securities LLC.
2) Active Investing and brokerage services are provided by SoFi
Securities LLC, Member FINRA(www.finra.org)/SIPC(www.sipc.org).
Clearing and custody of all securities are provided by APEX
Clearing Corporation.
3) SoFi Crypto is offered by SoFi Digital Assets, LLC, a FinCEN
registered Money Service Business.
For additional disclosures related to the SoFi Invest platforms
described above, including state licensure of SoFi Digital Assets,
LLC, please visit SoFi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth,
nor the Registered Representatives of SoFi Securities are
compensated for the sale of any product or service sold through any
SoFi Invest platform. Information related to lending products
contained herein should not be construed as an offer or
pre-qualification for any loan product offered by SoFi Bank,
N.A.
Important Information
Exchange Traded Funds (ETFs): Investors should carefully
consider the information contained in the prospectus, which
contains the Fund’s investment objectives, risks, charges,
expenses, and other relevant information. You may obtain a
prospectus from the Fund company’s website or by email customer
service at investsupport@sofi.com. Please read the prospectus
carefully prior to investing.
Shares of ETFs must be bought and sold at market price, which
can vary significantly from the Fund’s net asset value (NAV).
Investment returns are subject to market volatility and shares may
be worth more or less their original value when redeemed. The
diversification of an ETF will not protect against loss. An ETF may
not achieve its stated investment objective. Rebalancing and other
activities within the fund may be subject to tax consequences.
Risks:
Written Options Risk. The Fund will incur a loss as a
result of writing (selling) options (also referred to as a short
position) if the price of the written option instrument increases
in value between the date the Fund writes the option and the date
on which the Fund purchases an offsetting position. The Fund’s
losses are potentially large in a written put transaction and
potentially unlimited in a written call transaction. Because of the
fund’s strategy of coupling written and purchased puts and call
options with the same expiration date and different strike prices,
the Fund expects that the maximum potential loss for the Fund
for any given credit spread is equal to the difference between the
strike prices minus any net premium received. Nonetheless,
because up to 90% of the Fund’s portfolio may be subject to this
risk - the value of an investment in the Fund – could decline
significantly and without warning, including to zero.
Derivatives Risk. Derivatives include instruments and
contracts that are based on and valued in relation to one or more
underlying securities, financial benchmarks, indices, or other
reference obligations or measures of value. Major types of
derivatives include options. Depending on how the Fund uses
derivatives and the relationship between the market value of the
derivative and the underlying instrument, the use of derivatives
could increase or decrease the Fund’s exposure to the risks of the
underlying instrument. Using derivatives can have a leveraging
effect if the Sub-Adviser is unable to set an appropriate spread
between two options held by the Fund and increase Fund volatility.
In that event, a small investment in derivatives could have a
potentially large impact on the Fund’s performance. Derivatives
transactions can be highly illiquid and difficult to unwind or
value, and changes in the value of a derivative held by the Fund
may not correlate with the value of the underlying instrument or
the Fund’s other investments. Many of the risks applicable to
trading the instruments underlying derivatives are also applicable
to derivatives trading. Financial reform laws have changed many
aspects of financial regulation applicable to derivatives. Once
implemented, new regulations, including margin, clearing, and trade
execution requirements, may make derivatives more costly, may limit
their availability, may present different risks or may otherwise
adversely affect the value or performance of these instruments. The
extent and impact of these regulations are not yet fully known and
may not be known for some time.
Interest Rate Risk. Generally fixed income securities
decrease in value if interest rates rise and increase in value if
interest rates fall, with longer-term securities being more
sensitive than shorter-term securities. For example, the price of a
security with a one-year duration would be expected to drop by
approximately 1% in response to a 1% increase in interest rates.
Generally, the longer the maturity and duration of a bond or fixed
rate loan, the more sensitive it is to this risk. Falling interest
rates also create the potential for a decline in the Fund’s income.
These risks are greater during periods of rising inflation.
Leveraging Risk. Derivative instruments held by the Fund
involve inherent leverage, whereby small cash deposits allow the
Fund to hold contracts with greater face value, which may magnify
the Fund’s gains or losses. Adverse changes in the value or level
of the underlying asset, reference rate or index can result in loss
of an amount substantially greater than the amount invested in the
derivative. In addition, the use of leverage may cause the Fund to
liquidate portfolio positions when it would not be advantageous to
do so in order to satisfy redemption obligations.
Liquidity Risk. Liquidity risk exists when particular
investments of the Fund would be difficult to purchase or sell,
possibly preventing the Fund from selling such illiquid securities
at an advantageous time or price, or possibly requiring the Fund to
dispose of other investments at unfavorable times or prices in
order to satisfy its obligations.
New Fund Risk. The Fund is a recently organized
management investment company with no operating history. As a
result, prospective investors do not have a track record or history
on which to base their investment decisions.
Non-Diversification Risk. The Fund is classified as
“non-diversified,” which means the Fund may invest a larger
percentage of its assets in the securities of a smaller number of
issuers than a diversified fund. The Fund will generally have up to
15 credit spreads at any given time, with up to 25% exposure to a
single equity index credit spread. Investment in a limited number
of equity indexes exposes the Fund to greater market risk and
potential losses than if its assets were diversified among a
greater number of indexes.
Distributed by Foreside Fund Services LLC
SOFI-F
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version on businesswire.com: https://www.businesswire.com/news/home/20231116244022/en/
Melanie Garvey mgarvey@sofi.org
SoFi Technologies (NASDAQ:SOFI)
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