
SoFi Technologies Inc (NASDAQ:SOFI) has returned to the ETF space after close to two years, launching the SoFi Agentic AI ETF (NYSE:AGIQ) on Wednesday. The fund is designed to ride the hot investor demand for artificial intelligence, a theme that remains retail portfolios’ favorite despite increasing debate regarding valuations.
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SoFi last sponsored five ETFs, the latest being the SoFi Enhanced Yield ETF (NYSE:THTA) in November 2023. The new listing reflects its efforts to make a niche for itself in thematic investing amidst the AI mania.
The AGIQ ETF follows the Solactive BITA USA Agentic AI Select Index and has an expense ratio of 0.69%. Its holdings of 30 stocks range from well-known AI stalwarts such as Nvidia Corp (NASDAQ:NVDA) and Palantir Technologies Inc (NASDAQ:PLTR) to more unusual names like Intuitive Surgical Inc (NASDAQ:ISRG) and Deere & Co (NYSE:DE), which are integrating AI into robot surgery systems and agricultural equipment.
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Brian Walsh, SoFi's head of advice and planning, noted that the fund seeks companies deriving a meaningful share of revenue from deploying AI, and its composition is expected to evolve with the sector.
The launch arrives at a time when equities powered by artificial intelligence are in for a reality check. Investors have started wondering if stocks at the eye of the AI trade are capable of supporting high valuations and delivering expected productivity improvements. Nvidia, for example, has experienced the force of profit-taking in recent trading sessions after a meteoric run-up.
Per Reuters, industry watchers are cautioning that SoFi's new product enters an increasingly crowded AI ETF landscape, making it hard for AGIQ to stand out from the crowd. More than 190 single-stock leveraged and inverse ETFs already allow traders to speculate on volatile moves in Nvidia, Tesla Inc (NASDAQ:TSLA), and Palantir.
Nevertheless, interest in the theme is not waning, per Steve Sosnick, Interactive Brokers’ chief market strategist.
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