SFY: Strong Growth For Now, But I'm Questioning Its Durability

SoFi Select 500 ETF maintains a 'hold' rating, reflecting strong GARP and quality but concerns about growth durability stemming from its methodology.

SFY's Index captures a stock's historical one-year sales and earnings growth plus its one-year earnings growth estimates. Those are short-term metrics, meaning there is no adequate test for durability. This could negatively impact shareholders in fast-changing markets.

The strategy doesn't protect against overweighting cyclical stocks with poor long-term growth rates but strong short-term growth rates. That said, this is not an issue today. SFY's 3Y Sales and EPS CAGR's are also strong, and its P/E ratios are surprisingly low for the growth offered.

With a low 0.05% net expense ratio, SFY appeals to SPY-type investors seeking slightly more growth potential but without the downside risk found in benchmarks like QQQ.

Overall, it's a solid "hold." PhanuwatNandee/iStock via Getty Images Investment Thesis I last reviewed the SoFi Select 500 ETF ( SFY ) on June 29, 2026, when I rated it a "hold" while noting its strong GARP and quality characteristics. Since that review was published, SFY has only earned a small This article was written by The Sunday Investor 7.45K Followers Follow The 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 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.