By Spencer Feingold
The financial services firm SoFi launched a new exchange-traded fund on Wednesday focused entirely on the gig economy.
“Our members are very excited about these fast growing, gig economy companies,” Anthony Noto, SoFi’s CEO, told Cheddar. The ETF includes companies ranging from Google ($GOOGL) to Lyft ($LYFT) and allows private companies to be included in the portfolio within 31 days of their initial public offering.
Uber, for example, will likely join the ETF following its market debut on Friday.
SoFi defines a gig economy company, Noto said, as one that “facilitates or supports the flexibility of working” in the shared economy, which is based on short-term engagements that allow for personal freedom.
The ETF also includes businesses that support the gig economy, such as Square ($SQ) and Shopify ($SHOP), which provide payment systems, or Apple ($AAPL), whose app store is a fundamental distribution platform.
“It is both the companies that are providing the direct service and the companies that are supporting the companies providing these gig economy services,” Noto explained, adding that since investors are often customers of these companies, they “are investing a little bit" in themselves.
The ETF will be listed under the ticker GIGE on the Nasdaq and be an actively-managed fund by Toroso Investments.
“Our novice and new investors should have diversified exposure as opposed to single stock risk,” Noto said. “This ETF gives them the best of both worlds.”
SoFi also announced a separate fund on Wednesday, the SoFi 50 ETF, which includes the top 50 publicly-traded companies in the U.S. with the highest growth score. Growth is tracked by top-line revenue growth, net income growth, and forward-looking consensus estimates of net income growth. The SoFi 50 will be listed on the New York Stock Exchange under the ticker SFYF.
The ETFs follow two other funds that SoFi launched last month that capture a broader swath of leading U.S. companies and highlights the company's major push into investing services ー a far cry from SoFi's beginnings as a student loan provider.