What are the SoFi investment portfolios?
The SoFI portfolios are exposed to between 100% stocks and 100%. SoFi’s portfolios are low- to high-risk portfolios and can be built with 3 – 8 ETFs.
For the past 10 years, the SoFi Retirement Moderately Aggressive has returned 10.3 with a standard deviation of 14.48.
The dividend yield is 2.32%. The 30 year return is 8.78%. Last year it returned 14.07%.
How do you build SoFi’s portfolios with ETFs?
Here is how you build SoFi’s portfolios with ETFs. This is for SoFi Model Portfolios Retirement Moderately Aggressive.
- 38% Total stock market (VTI)
- 32% International developed (VEA)
- 10% Emerging Markets (VWO)
- 15% Total Bond Market (BND)
What is the historical return for SoFi investment portfolios?
Here is the historical return for SoFi’s investment portfolios.
Data was last updated on July 31, 2022 at 08:29 a.m. ET
|Name||Asset class count||Year to date||Return in 2020||10 year return||CAGR since 1989 (%)||Risk level||Expense ratio|
|SoFi Model Portfolios Taxable Conservative||3||-6.4||5.18||2.96||5.09||1||0.06%|
|SoFi Model Portfolios Taxable Moderately Conservative||6||-9.13||8.34||5.79||6.61||1||0.05%|
|SoFi Model Portfolios Taxable Moderate||6||-11.76||11.51||8.43||7.83||2||0.05%|
|SoFi Model Portfolios Taxable Moderately Aggressive||5||-13.65||13.67||10.3||8.5||3||0.05%|
|SoFi Model Portfolios Taxable/Retirement Aggressive||3||-15.34||15.75||11.87||8.99||3||0.05%|
|SoFi Model Portfolios Retirement Conservative||4||-9.0||7.29||2.89||5.85||1||0.06%|
|SoFi Model Portfolios Retirement Moderately Conservative||6||-11.5||9.69||5.82||7.35||1||0.07%|
|SoFi Model Portfolios Retirement Moderate||6||-13.11||12.33||8.47||8.23||2||0.06%|
|SoFi Model Portfolios Retirement Moderately Aggressive||5||-14.55||14.07||10.3||8.78||3||0.06%|
What is SoFi?
Social Finance (commonly known as SoFi) is an American online personal finance company that provides student loan refinancing, mortgages, personal loans, investing, and banking.
We will focus on the investing part of SoFi in this article.
SoFi had a rocketing career ever since it was founded in 2011. They are heavily into refinancing student loans.
SoFi is not roboadvisor per se. But they do have model portfolios. They make it easy for you to invest in their model portfolios.
Description for SoFi’s portfolios
SoFi’s most conservative retirement portfolios only hold bonds. Unless you have a truckload of money, you will run out of money in this (in 2020) low-interest environment. A better and measured approach is to use the bucket approach described by Christine Benz of Morningstar.
The other thing that SoFi does a little differently is its use of safe assets. A safe asset is an asset class in your portfolio that stabilizes your portfolios from wild swings in value and hopefully keeps up with inflation. Examples include bonds and short-term bonds.
SoFi also uses short-term bonds for this, but they also allocate a small portion (5-10%) to the asset class short-term high-yield bonds, A.K.A short-term junk bonds. This is very strange as this asset class is more volatile than short-term bonds. It does give a higher yield, but they are there to stabilize, not provide a higher return. A better approach would be to allocate to corporate bonds, junk bonds, or just a total bond fund.
The short-term high yield asset class is also a very rare asset class. It provides the worst of the junk bonds and short-term bonds. The asset class offers high volatility and low returns.
We do not have a time series describing the short-term high yield asset class. We use a corporate bond time series instead.
SoFi also uses a high-yield muni bond. We use a corporate bond time series as a proxy. They have similar returns and risks without the tax benefits, but we can use it for benchmarking purposes.
The aggressive portfolio is the same for taxable and retirement account.
SoFi also allocates to high-yield munis. To benchmark this asset class, we use corporate bonds as a proxy. The two asset classes have similar returns and risks, but the corporate bond does not the tax benefit. But we can use it for benchmarking purposes.
What is the asset allocation for SoFi investment portfolios?
Here is the asset allocation for SoFi’s investment portfolios.
|Name||Total US Market||International Developed||Emerging Markets||Total Bond Market||Short Term Bonds||Intermediate Corp Bonds||Intermediate Terms Munis||Emerging Market Bonds|
|SoFi Model Portfolios Taxable Conservative||25.00%||75.00%|
|SoFi Model Portfolios Taxable Moderately Conservative||14.00%||12.00%||4.00%||15.00%||55.00%|
|SoFi Model Portfolios Taxable Moderate||28.00%||24.00%||8.00%||10.00%||30.00%|
|SoFi Model Portfolios Taxable Moderately Aggressive||38.00%||32.00%||10.00%||20.00%|
|SoFi Model Portfolios Taxable/Retirement Aggressive||47.00%||40.00%||13.00%|
|SoFi Model Portfolios Retirement Conservative||60.00%||25.00%||10.00%||5.00%|
|SoFi Model Portfolios Retirement Moderately Conservative||14.00%||12.00%||4.00%||40.00%||15.00%||5.00%||10.00%|
|SoFi Model Portfolios Retirement Moderate||28.00%||24.00%||8.00%||20.00%||10.00%||5.00%||5.00%|
|SoFi Model Portfolios Retirement Moderately Aggressive||38.00%||32.00%||10.00%||15.00%||5.00%|
Resources for the SoFi investment portfolios
Check out SoFi’s YouTube channel.
Suggestions for your next steps
Finding the correct portfolio is hard. Maintaining your portfolio is also daunting. If you are still in doubt about which portfolio to choose, we suggest you read our article How To Invest Money: 5 Simple Steps That Work For Anyone
If you have already committed to a portfolio – good for you! If you need help maintaining the portfolio you will find our rebalance worksheet useful.
Rebalancing your portfolio lowers your risk and may provide higher returns in the long run. It is completely FREE.
You can find the rebalance worksheet in our article Here Is The Most Easy To Use Portfolio Rebalance Tool.
Rebalancing lowers your portfolio risk and can increase your returns.
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