SoFi Technologies announced that it will liquidate the SoFi Next 500 ETF (ticker SFYX). The fund will cease trading on NYSE Arca at the close of regular trading on February 18 2026, after which the company will begin liquidating its holdings and distributing cash to shareholders by approximately February 25 2026.
The decision follows a strategic review that concluded the ETF business no longer aligns with SoFi’s long‑term growth priorities. At the time of liquidation, the ETF had $26.97 million in assets under management and had not attracted significant capital growth. By exiting the ETF, SoFi frees capital that can be deployed in its core segments—lending, financial services, and a technology platform that supports a growing member base.
Shareholders of the ETF will receive a cash distribution equal to the fund’s net asset value, creating a taxable event. While the liquidation removes a modest revenue stream, it also eliminates ongoing management fees and operational costs associated with the ETF, allowing SoFi to concentrate resources on higher‑margin activities.
SoFi’s core business has been expanding rapidly. In Q4 2025, the financial services and technology platform segments generated $579 million in revenue, representing 57% of the company’s total adjusted net revenue. Fee‑based revenue surged 53% year‑over‑year to $443 million, and the company’s adjusted EBITDA margin reached 31% in Q4 2025, with a 2026 target of 34%. CEO Anthony Noto emphasized that the company is “scaling our one‑stop shop model to deliver both growth and returns.”
Analysts have responded with mixed sentiment. Needham lowered its price target from $36 to $33, while Bank of America initiated coverage with an “Underperform” rating and a $20.50 target, citing concerns about capital raising and valuation. Nonetheless, the strategic pivot signals confidence in the company’s core growth trajectory and a focus on sustainable, fee‑based revenue streams.
SoFi’s move is part of a broader pattern of reevaluating its ETF portfolio. In February 2024, the company announced the liquidation of five other ETFs, including the SoFi Weekly Income and SoFi Weekly Dividend ETFs. The pattern suggests a deliberate shift away from passive investment products toward a technology‑driven financial services model.
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