Personal Finance

SoFi Introduces Enhanced Yield ETF $THTA

by Kyle BurbankNov 17, 2023

The FinTech turned bank SoFi has launched another new ETF — this one focused on providing an enhanced yield.

About the ETF:

SoFi has introduced its newest exchange traded fund: SoFi Enhanced Yield ETF (ticker symbol $THTA). According to the company, the new ETF is meant to generate a monthly income for investors. To do this, it utilizes a portfolio of short-term Treasury Bills alongside an options trading strategy. As the ETF’s landing page explains, “The strategy seeks to generate income by holding short-duration US Treasuries without material interest risk while capturing enhanced income by selling volatility premiums using high probability defined risk option spreads.”

SoFi Invest Special Offer

We’re big fans of SoFi Invest but it gets even better. For a limited time you can get a $50 bonus if you open a new account with this Fioney link.

Bonus Offer

This new Enhanced Yield ETF joins SoFi’s growing list of proprietary exchange traded funds. In 2019, SoFi debuted its first two ETF: SoFi Select 500 ETF and SoFi Next 500 ETF. Since then, the bank has also created ETFs based around popularly held stocks (The SoFi Social 50 ETF), smart energy (SoFi Smart Energy ETF), a weekly dividend (SoFi Weekly Dividend ETF), and more. Another early SoFi ETF — SoFi Gig Economy ETF — was rebranded to the SoFi Be Your Own Boss ETF last year.

$THTA is actively managed by ZEGA Financial and has an expense ratio of 0.49%. As of this writing, shares of the ETF are trading for just north of $20 each.

More on SoFi:

While originally synonymous with student loans, SoFi has since become a major FinTech player, offering banking, investing, loan, and credit card products. In 2022, following its acquisition of Golden Pacific Bancorp, SoFi Bank was formed. Elsewhere, the SoFi name has gained prominence in popular culture as it retains naming rights to the Los Angeles stadium that’s home to the NFL’s Rams and Chargers.

According to SoFi, it now has more than 6.9 million members using its various products — all of which can be found on the company’s site and in its mobile app.

My thoughts:

While I don’t 100% understand the mechanics behind this offering (and a horribly written press release didn’t help me much), I’m always intrigued by an ETF meant to create income. Of course, with $THTA being brand new, it’s not yet clear just how much yield investors can actually expect. It’s also worth noting that, although SoFi is behind this ETF and would certainly like you to use their SoFi Invest platform, it can be purchased from pretty much any brokerage. In fact, I bought a share on Robinhood — so we’ll see how this SoFi Enhanced Yield ETF performs from here.

Author

Kyle Burbank

Head Writer ~ Fioney

Kyle is the head writer for Fioney. He is a personal finance nerd, constantly looking for new apps and services to test and incorporate into his own financial game plan. In addition to his role at Fioney, he's written for other publications including Born2Invest, Lifehack, and Laughing Place, as well as his own site Money@30. He also creates personal finance and travel-related videos for Money@30's YouTube channel, which has garnered more than 2 million views. Currently, Kyle resides in Springfield, Missouri with his wife of 10 years. Together, they enjoy traveling (including visiting Disney Parks around the world), dining, and playing with their dog Rigby.

2023 Small Business Credit Card Satisfaction Tops 2019 Highs

by Kyle BurbankDec 8, 2023

The latest small business credit card study from J.D. Power shows satisfaction continuing to rise. About the study and results: This week, J.D Power released its 2023 U.S. Small Business Credit Card Satisfaction Study, which includes responses from more than 3,400 small business credit card customers. In this case, the study looked at businesses with annual revenues between $10,000 and $10 million. First, it was discovered that overall satisfaction among...

Credit Cards

Discover Announces 5% Bonus Categories for First Quarter of 2024

by Kyle BurbankDec 7, 2023

With 2024 sneaking up on us, Discover has announced its rotating 5% bonus categories for the first quarter of next year. About the Q1 2024 bonus categories: From January through March 2024, Discover It customers will be able to earn up to 5% back in two categories: restaurants and drugstores. According to the company, the Restaurants category includes full-service establishments, cafes, cafeterias, fast-food locations, and dining delivery services. For the...

FinTech News

Public App Adds Corporate and Treasury Bonds Feature

by Kyle BurbankDec 6, 2023

The FinTech trading app Public has announced new investment options for its members. About the features: Public is now rolling out the ability for customers to invest fractionally in corporate and Treasury bonds. This capability will be introduced on both the mobile and desktop interfaces for the service. According to Public, the addition comes as demand for fixed-income products increases. In addition to these bond types, the app will also...