Newcomer Tidal Plans 4 ETFs

January 11, 2019

ETF Solutions provider Tidal Growth Consultants has filed for a quartet of funds, three of which focus on growth strategies and one that targets companies that support the independent contracting and freelance communities. All will track indexes provided by Social Finance.

Growth-Oriented ETFs

The benchmarks underlying the SoFi 500 ETF (SFY) and SoFi Next 500 ETF (SFYX) draw their components from the top and bottom 500 stocks, respectively, of the Solactive US Large & Mid Cap Index, which contains roughly 1,000 of the largest U.S.-listed equities.

The individual index components are scored and weighted based on four growth-oriented fundamental factors that include trailing 12-month sales growth, trailing 12-month earnings per share growth, 12-month forward-looking EPS growth consensus estimates and an investments-to-earnings ratio based on the prior 12 months, according to the prospectus.

The SoFi 50 ETF (SFYF) selects its components from the same parent index as the other funds and uses a similar scoring approach that is based on quarter-to-quarter sales growth, quarter-to-quarter earnings per share growth, 12-month forward-looking EPS growth consensus estimates and investments-to-earnings ratio. The 50 highest-scoring companies are selected for SFYF’s index and equally weighted, the document says.

The three ETFs will be listed on the NYSE Arca.

ETF For Gig Economy     

Finally, the SoFi Gig Economy ETF (GIGE), which is slated to list on the Nasdaq exchange, will target companies that benefit from or support the “gig economy” concept that is driven by independent contractors and freelancers.

Based on the prospectus, the underlying index will include a variety of types of firms such as those directly benefiting from the gig economy, those operating app-based platforms, auction sites, web-based stores or commission-based platforms (weighted at 30%-60%); those offering support to the gig economy via marketing and sales functions, including social media platforms (20%-40%); those providing financial transactions solutions like web-based platforms or apps (5%-20%); those supporting gig economy workers by providing services that enable their participation like technology or health care (5-15%); and those that are expected to benefit from the gig economy and the lifestyle changes it drives (0%-10%).

The filing did not include expense ratios for the different ETFs.

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