SoFi Blog

Economic Data

Today, look for the September ISM Services Index and September Markit services PMI. PMI stands for purchasing managers’ index. This metric is based on monthly surveys of US companies about the state of their businesses and the economy. Service reports generally track transport and communication firms, financial intermediaries, business and personal companies, information technology and computing, hotels and restaurants. Along with manufacturing data, these readings contextualize underlying trends in the economy.

Tomorrow, August job openings and August trade deficit data will be released. Trade deficit measures the difference between a country’s imports and exports. Between June and July, the US trade deficit rose from $53.5 billion to $63.6 billion.

On Wednesday, be on the lookout for Federal Open Market Committee (FOMC) meeting minutes and August consumer credit. Consumer credit measures debt that people take on to buy goods and services. In July, consumer credit climbed by a seasonally adjusted annual rate of 3.5%.

On Thursday, initial jobless claims will be released. First-time jobless claims released last week came in at 837,000, marking a 36,000 decline from the prior week. Continuing claims were down by almost 1 million, hitting 11.8 million. Though recovery for the job market is still gradual, these numbers showed a somewhat encouraging trend. That said, there is still a long way to go to get back to pre-pandemic levels of jobless claims.

To round out the week, August wholesale inventories will be released on Friday. This metric measures how much stock wholesalers have that they cannot sell. A high amount of inventory means retail demand is depressed while a low amount of inventory means demand is high. From June to July, wholesale inventories climbed by 4.6%, showing that demand for retail goods fell as some states rolled back reopening measures in July due to rising COVID-19 cases.

Earnings Reports

Third quarter earnings season will begin this week. Investors will be eager to see how companies are adjusting to what some see as a “new normal.”

Tomorrow, Levi Strauss &Co (LEVI) will report its latest results. The pandemic has been hard on most clothing companies due to store closures. Jeans makers have had a particularly difficult time as many people are choosing to wear leggings or sweatpants while working from home. Due to decreased revenue, Levi Strauss cut 700 corporate jobs, or about 15% of its corporate workforce over the summer.

Paychex Inc. (PAYX) a company that provides payroll systems, human resources help, and other services to small and medium-sized businesses, will also report earnings tomorrow. The company facilitates payment for one out of every 12 American private sector employees. It recently created new systems to help employers deal with the pandemic, including COVID-19 leave tracking and screening.

On Wednesday, Lamb Weston Holdings Inc. (LW) hands in its report card. The Idaho-based company supplies frozen potatoes, vegetables, and other food products to restaurants and grocers. It is likely that the company’s restaurant business has been hampered by the pandemic, but its grocery store business saw growth. This report will give insights into how well the company was able to alter its supply chains over the last quarter.

On Thursday, look out for an earnings report from Domino’s Pizza (DPZ). Domino’s is the world’s largest pizza company by sales and has 17,100 locations in more than 90 markets. Domino’s has been at the forefront of online ordering and delivery for some time, and when the COVID-19 pandemic hit, it stepped in to fill a surging demand for food delivery. Their digital strategy has driven sales which has continued to push the company’s stock price higher.

Delta Airlines (DAL) is also expected to report earnings on Thursday. Along with other air carriers, Delta has faced severe hardships due to the COVID-19 pandemic. Last week, the Treasury Department extended loans to seven major US airlines, but Delta and Southwest (LUV) both decided to opt out and stick to funding from private markets.

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Allbirds, a shoe company, raises $100 million to invest in physical stores. VTEX, an e-commerce platform, secures $225 million at a $1.7 billion valuation.

Hard to believe, but it’s already been over a year since we launched our first exchange-traded funds (ETFs), starting with the zero-fee* SoFi Select 500 (SFY) and SoFi Next 500 (SFYX) funds and growing to include the Gig Economy (GIGE) and SoFi 50 (SFYF) ETFs.

Well, we’re extremely proud to announce today the latest addition to our ETF family: the SoFi Weekly Income ETF (TGIF) — the industry’s first-ever weekly dividend-paying fund**. It was overwhelmingly the most popular choice in a recent survey of SoFi members, so we made it happen.

TGIF is an actively managed fund that seeks to achieve its investment objective by investing in U.S. dollar-denominated investment grade and non-investment-grade securities and instruments, and it plans to distribute income from its investments to shareholders on Friday (hence the ticker!).

We designed TGIF to seek consistent income at attractive interest rates, at a lower level of risk than the stock market, and we would love to hear what you think of the new fund. Please visit sofi.com/etfs for more information on the SoFi Weekly Income ETF, as well as the other ETFs in our fund family.

Disclosures
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.

*The Fund’s investment adviser has agreed to waive its Management Fees for SoFi Select 500 ETF and SoFi Next 500 ETF until at least June 30, 2021. 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.

** The Fund intends to pay out dividends and interest income, if any, weekly. There is no guarantee these payouts will be made.

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. 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.

Since the Fund is actively managed it does not seek to replicate the performance of a specified index. The Fund may frequently trade all or a significant portion of its portfolio; and have higher portfolio turnover than funds that do seek to replicate the performance of an index.

High-yield securities (also known as “junk” bonds) carry a greater degree of risk and are more volatile than investment grade securities and are considered speculative. The Fund’s investments in high-yield securities expose it to a substantial degree of credit risk.

The value of the Fund’s investments in fixed income securities will fluctuate with changes in interest rates. Typically, a rise in interest rates causes a decline in the value of fixed income securities owned indirectly by the Fund. On the other hand, if rates fall, the value of the fixed income securities generally increases. 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. Privately placed securities generally are less liquid than publicly traded securities and the Fund may not always be able to sell such securities without experiencing delays in finding buyers or reducing the sale price for such securities.

SoFi ETFs are distributed by Foreside Fund Services, LLC.

SoFi’s taking you back to the financial classroom to teach you about the basics of home buying and how you can get financially ready for homeownership with SoFi’s Lauren Anastasio, CFP®.

The housing market has boomed in 2020, and analysts say this trend could continue for years to come.