Introducing SoFi’s Gig Economy ETF
Groupon or GrubHub? Square or Paypal? eBay or Etsy? Who will win our business may be up for debate, but the question of how the gig economy is changing the future of work and commerce certainly is not.
When you think about the Gig Economy, you may immediately think of Lyft drivers and short-term rental hosts, but there are many other players and companies helping to make this shift in the workforce a permanent fixture of everyone’s daily lives to bring you what you want, when you want it.
What is it?
The gig economy was borne out of the financial crisis of 2008, when the markets crashed and trust in big organizations was lost. Gig economy companies embrace individual empowerment.
People are increasingly becoming their own bosses. We interact with companies in the gig economy in many aspects of our lives, including, but not exclusively, in our professional lives. Where some may think the gig economy is a trend that simply allows people to work for themselves, we know that this is a revolutionary shift toward a new norm for at least some segment of the workforce.
The days of working for a company, passively collecting a paycheck under the constraints of a glass ceiling or golden handcuffs are fading. Workers are deriving meaning from adding value to others and getting paid for doing it.
The gig economy is the epitome of personal responsibility. Ultimately, the gig economy is about empowerment. Instead of working for the “man”, people are more often choosing to work for themselves.
The gig economy is dramatically impacting how business is conducted and no industry will likely be untouched. And, public companies are also making moves to facilitate it as a platform. Companies realize there is no way to build a perfect team of full-time employees that are capable of tackling all problems. The ability to either supplement or completely rely on the “on-demand” workforce allows companies to access workers with specific talents ideal for the unique projects that arise.
From a worker’s perspective, this allows more flexibility, and allows individuals to offer services in many instances globally even if they are physically located far away. It is also an ideal way to find successful long-term employment if desired, as the short-term commitment can be approached as a detailed vetting process where both the employee and employer are seeking a proper fit.
So Then, What is the SoFi Gig Economy ETF?
The SoFi Gig Economy ETF (ticker: GIGE) provides exposure to companies involved in this revolutionary shift toward a gig economy. GIGE is the first ETF to concentrate on providing diversified access to companies in the gig economy.
GIGE joins the next generation of thematic ETFs. Unlike most traditional ETFs that track an index, GIGE is actively-managed and able to quickly adjust to changing trends, in addition to adding in companies quickly after their initial public offering (IPO).
Why Might I Want to Invest in the Gig Economy?
The First of its Kind:
GIGE includes the companies you may know from all aspects of your life. The SoFi Gig Economy ETF is the first ETF to offer direct access to this growth engine.
The Gig Economy is global, which is why approximately 40 to 50% of GIGE’s holdings consist of companies outside the United States. Investing in companies from different regions can help offset weakness in individual local markets.
Unlike passively managed ETFs, actively managed ETFs like GIGE are capable of quickly responding to changing market conditions. This includes quickly accessing new tech IPOs and acting on significant outlier movements that need to be rebalanced more intelligently than a timed monthly, quarterly or annual schedule would allow.
Enhanced Risk-Return Profile:
GIGE has a higher risk-return profile than core, broadly-diversified ETFs, which may be suitable for long-term investors who are both beginning their investment journeys and those who are well on their way. For investors wanting targeted growth potential, GIGE could fit the bill.
Before investing you should carefully consider the Fund’s investment objectives, risks, charges, and expenses. This and other information is in the prospectus. A prospectus may be obtained by visiting www.sofi.com/invest/etfs/. Please read the prospectus carefully before you invest.
There is no guarantee that the Fund’s investment strategy will be successful. Shares may trade at a premium or discount to their NAV in the secondary market, and a fund’s holdings and returns may deviate from those of its index. These variations may be greater when markets are volatile or subject to unusual conditions. A high portfolio turnover rate increases transaction costs, which may increase the Fund’s expenses. The Fund is new and has a limited operating history. You can lose money on your investment in the Fund. Diversification does not ensure profit or protect against loss in declining markets. Investments in foreign securities may involve risks such as social and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation. Investing in emerging markets involves different and greater risks, as these countries are substantially smaller, less liquid and more volatile than securities markets in more developed markets. Because the Fund may invest in a single sector, country or industry, its shares do not represent a complete investment program. As a non-diversified fund, the value of the shares may fluctuate more than shares invested in a broader range of industries and companies because of concentration in a specific sector, country or industry.
As of 5/8/19 the securities mentioned comprised the SoFi Gig Economy ETF in the following percentages: GrubHub 0.5%, Groupon 1.0%, Square 3.93%, PayPal 3.93%, Etsy 3.93%, Ebay 3.93%, Lyft 3.93%
SoFi ETFs are distributed by Foreside Fund Services, LLC.
Investors buy and sell ETF shares through a brokerage account or an investment adviser like ordinary stocks; brokerage commissions and/or transaction costs or service fees may apply. Please consult your broker or financial advisor for their fee schedule.