SFY: Conditions Favorable For This Low Cost Large-Cap Growth ETF
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The Sunday Investor7.04K FollowersFollow5ShareSavePlay(14min)CommentsSummarySFY is comprised of 500 U.S. large-cap securities selected and weighted based on their market caps and growth scores. Its expense ratio is 0.05% and the ETF has $558M in assets.SFY distinguishes itself from its peers by relying only on a short one-year growth window (both forward and backward looking) to evaluate a security's attractiveness.Companies with the highest short-term growth rates receive the largest positive adjustments, and my analysis suggests this strategy works best in high-growth environments where earnings growth trends are somewhat steady.The absence of additional screens, which might include longer lookbacks or specific screens for earnings quality, might lead to poor relative performance in more volatile environments.Still, with S&P 500 Index earnings surprises steady over the last three years, and Q3 2025's result solid at 8.8%, conditions seem ideal for the moment. Therefore, SFY earns a solid "hold" rating. pingingz/iStock via Getty Images Investment Thesis I last reviewed the SoFi Select 500 ETF (SFY) on October 1, 2025, when I reiterated my view that, despite concerns about its selection process, it was a sensible low-cost solution for investors seeking broad diversification with a slight growthThis article was written byThe Sunday Investor7.04K FollowersFollowThe Sunday Investor is focused exclusively on U.S. Equity ETFs. He has a strong analytical background, has received a Certificate of Advanced Investment Advice from the Canadian Securities Institute, and has completed all the educational requirements for the Chartered Investment Manager designation.Having covered hundreds of ETFs on Seeking Alpha, The Sunday Investor has developed a complex, proprietary ETF Rankings system which he shares on his website, etf-rankings.com. Nearly 1,000 ETFs receive individual factor scores covering costs, liquidity, risk, size, value, dividends, growth, quality, momentum, and sentiment, which feed into an easy-to-understand composite score from 1-10.
The Sunday Investor is always active in the comments section in his articles - please don't hesitate to reach out via comment in any article or by visiting etf-rankings.com. Happy Investing!Analyst’s Disclosure:I/we have a beneficial long position in the shares of SPY, QGRO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.