SoFi Invest Review 2021 – (formerly SoFi Wealth) – Expert Analysis

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SoFi Automated Investing Review

SoFi Wealth recently rebranded as SoFi Invest!

The newly launched SoFi Invest (formerly SoFi Wealth) adds 6 verticals to the SoFi investing platform. The investing options continue to transform SoFi from a lending company to a full service financial destination.

This review will delve into the SoFi Automated Investing robo-advisor and the other SoFi Invest products.

*Disclosure: Please note that this article may contain affiliate links which means that – at zero cost to you – I might earn a commission if you sign up or buy through the affiliate link.

What is SoFi Invest?

The SoFi Investing category includes the SoFi Robo-Advisor and More:

In this SoFi Invest Review (previously entitled SoFi Wealth Review) you’ll learn about the legacy Sofi Wealth robo-advisor now called Sofi Invest Automated Investing. You’ll discover the Sofi Invest features, management fees (there aren’t any!), and find out who SoFi Invest automated investing is best for. We’ll also touch on a brief overview of the other SoFi Invest platforms; active investing and SoFi ETFs.

SoFi Automated Investing Review

Name: SoFi Invest

Description: SoFi Invest offers automated investing, crypto, and active investing.

  • Fees
  • Investment Choices
  • Ease of Use
  • Tool & Resources


SoFi Invest is best for:

  • SoFi customers
  • Cost conscious investors
  • New to intermediate investors


  • Fee-free investing
  • Great diversification
  • Free investment advisors 


  • No tax-loss harvesting
  • Limited account options

The SoFi Story

Short for Social Finance, Inc., SoFi is best known for providing student loan refinances. SoFi was founded in 2011, as an online lending platform. In fact, SoFi has grown to be one of the most innovative and comprehensive financial platforms in the industry. In addition to SoFi Invest, the company has various loans, insurance, and cash management options.

The platform has grown to more than 600,000 members and funded more than $30 billion in loans. SoFi is making a name for itself.

The SoFi Invest automated investing platform recently placed number one in the “best robo-advisor performance” in two categories. Recently, SoFi became the first startup online lender to receive an AAA rating from Moody’s.

For only $1, you can open up an account with SoFi Wealth Management. And better still, your account will be managed for free! This gives SoFi a seat at the free robo-advisors table. 

SoFi website

SoFi Automated Investing Review – Features at a Glance

OverviewFree automated investment management robo-advisor platform with financial advisors
Minimum Investment Amount$1
Fee StructureNo management or transaction fees
Top FeaturesLive advisors with personalized service; access to SoFi member benefits; career planning.
Free ServicesIn addition to free account management, SoFi Automated Investing users have access to a free mobile app and financial professionals.
Contact & Investing AdviceAvailable by email and phone, Monday through Thursday, 8:00 AM to 7:00 PM, EST, and Friday, 8:00 AM to 7:00 PM, EST
Investment FundsDiversified low-fee exchange traded index funds-ETS; stock bit purchases available through SoFi Active Investing
Accounts AvailableIndividual and joint taxable accounts; traditional, Roth and SEP IRAs
PromotionsFund a SoFi Invest account with $100 and receive $25 in a Stock Bits account.

What Differentiates the SoFi Investing Robo-Advisor from Competitors?

Fee – Free Investment Management

SoFi Automated Investing portfolios are managed for free. This is a perfect arrangement for investors who are looking for professional investment management but don’t want their investment returns reduced by fees.

Popular independent robo-advisors, such as Betterment and Wealthfront, frequently charge around 0.25% AUM to manage accounts, so SoFi is a competitive alternative for investors who don’t want to pay someone to manage their money. In addition, the SoFi robo-advisor has no trading, transfer, custodian or commission fees.

Learn: Robo-Advisor Q + A

To speed up the video, click on the “settings” gear at the bottom of the video. Choose “playback speed”. Select your speed (I prefer 1.5).

SoFi Invest Offers Live Advisors with Personalized Service

Though SoFi Automated Investing is a robo-advisor, they nonetheless offer live advisors to handle your questions and concerns. 

Even though you’re turning your money over to the platform for professional investment management, it often helps to have a live person to talk to about your portfolio. This can be particularly important during times of market turbulence and decline. Market drops are perfectly normal events, but sometimes it helps to have someone available to remind you just that.

This is a welcome feature, given that many robo-advisors limit live customer contact in an attempt to keep investment management fees as low as possible.

Bonus: Robo-Advisors with Financial Advisors 

The SoFi Invest Portfolio Offers Broad Investment Allocation – Real Estate and High Yield Bonds

While robo-advisors typically restrict investment allocation to just two broad categories – stocks and investment grade bonds – SoFi Invest adds a few other asset classes that are not typically on the menu with other investment services.

Index Funds – SoFi investors portfolios’ include up to 20 exchange traded funds, for broad diversification. Each of the index funds are designed to give you diversification and help returns.

The ETFs include real estate and high-yield bonds. The real estate position can be significant because it represents a diversification away from stocks and bonds. Real estate also represents a potential inflation hedge. Meanwhile, high-yield bonds offer the opportunity to improve fixed income investment returns, in this very low interest rate environment. Be aware that high yield bonds also pose a higher risk than investment grade bonds.

SoFi Investors Lose Tax-loss Harvesting

SoFi Wealth Management does not offer tax loss harvesting at this time. This can be a major negative for some investors, particularly since it is now offered by an increasing number of SoFi’s robo-advisor competitors such as Personal Capital and Axos Invest.

SoFi Loan Services 

One of the advantages to investing with the SoFi robo-advisor that you will have access to SoFi’s various loan programs. SoFi is fast becoming one of the most popular options to refinance student loans. But apart from these, the company also offers personal loans and mortgages.

If you don’t have any student loans to refinance, the personal loan program can be particularly attractive. SoFi offers personal loans for up to $100,000, with low rates. In addition, while other P2P lenders typically charge between 1% and 6% for a loan origination fee, SoFi doesn’t have one.

SoFi personal loans are unsecured and can be used for just about any purpose. They may not be what you’re thinking about when you’re looking for an investment management service, but they are an excellent option to have nonetheless.

Who Benefits from the SoFi Robo-Advisor?

Wondering who SoFi is best for?

SoFi Invest can work for anyone who is seeking free professional investment management with a combination of human advisors and digital investing.

In fact, SoFi is the only fee-free robo-advisor that offers financial advisors and career coaches.

“SoFi’s investment adviser representatives and hold the Series 65 or another qualifying examination or designation. We hold them to a fiduciary standard, meaning they are required to act in our clients’ best interests. We also have a team of planning professionals available to answer more complex questions and to help develop a personalized financial plan,” SoFi website

More specifically, the service seems particularly well-suited for new and small investors since the SoFi investment minimum is one dollar and there are no management fees.

The investment advisors are helpful yet not all have the prestigious Certified Financial Planner credential available at Betterment and Personal Capital. 

The SoFi Invest Platform is perfect if you want a portion of your money managed by the SoFi Automated Investing robo-advisor and you also want to buy and sell stocks, funds and cryptocurrency!

The Stock Bits from the SoFi Active investing make it very easy for new investors to get their feet wet in the investment markets. For just one dollar you can buy a portion of a publicly traded company like Tesla or Netflix.

The SoFi robo-advisor is a no-brainer robo-advisor for anyone with a SoFi loan and wants to consolidate loans, cash management and investing with one firm.

sofi invest review

SoFi Invest Automated Investing Drill Down

How SoFi Invest Works

Next come details about the specific Sofi Invest features from specific investments to sign up and features drill down.

Goal Planning

SoFi Invest prides itself on helping you invest for important future goals. The most popular goals include:

  • Planning for retirement – or early retirement!
  • Saving for a home down payment
  • Investing for your dream vacation
  • Planning for a childs education (great 529 planning tool)
  • Pay for a wedding

Diversified Investment Mix

Your SoFi Invest automated investing portfolio is based on your risk tolerance. Your portfolio will be comprised of  a broad range of low cost investments. These distinct  ETFs are managed by the platform’s portfolio team.

When you open a SoFi Automated Investing portfolio, there is no ability to purchase investments beyond those that are recommended by the service. That means that you will not be able to include individual stocks, or funds of your own choosing, within your portfolio.

Although, if you want a portion of your investments managed with computer-driven algorithm investing and you also want to try your hand at stock picking, you can also open a SoFi Stock Bits account.

The SoFi robo-advisor invests in diversified ETFs. The mix of these funds is proactively managed and will be changed as either world economic conditions change or the outlook of platform management changes.

Your portfolio is built from a mix of low-fee ETF’s that follow more than 20 indexes, each tracking the performance of different asset classes. The investment asset classes include:

  • US stocks
  • International stocks
  • High-yield bonds
  • Real estate
  • Short-term treasury bonds
  • And, stock markets of various countries and regions

Your individual investment portfolio is based on a mix of factors, including your investment goals and age. And like other robo-advisors, SoFi Automated Investing uses Modern Portfolio Theory or MPT in building your portfolio. MPT emphasizes systematic diversification, rather than chasing “hot stocks”. 

In case you’re wondering – and given that SoFi is a well-established P2P lender – SoFi Invest Automated Investing does not invest any part of your portfolio in the loans that are offered by the lending platform.


Another component of SoFi Invest are their four ETFs:

  • SoFi Select 500 (SFY) -currently fee-free and included in the SoFi Automated Investing Portfolios
  • SoFi Next 500 (SFYX) – currently fee-free and included in the SoFi Automated Investing Portfolios
  • SoFi 50 (SFYF)
  • SoFi Gig Economy (GIGE)

The SoFi Select 500 and the SoFi Next 500 promise zero fees for the short term. While the SoFi 50 and the SoFi Gig ETFs charge .29% and .59% expense ratios, respectively.

We don’t see any reason to choose these ETFs over other similar offerings at more established firms such as Fidelity, Vanguard or Schwab. But, it’s likely that SoFi makes money from the fund management expense ratios from the SoFi Gig and SoFi 50 ETFs.

Visit our Robo-Advisor Selection Wizard, answer 4 questions and get a personally curated list of robo-advisors that meet your criteria.

Periodic Rebalancing 

Your portfolio will be reviewed at least quarterly and will be rebalanced back to your preferred investment mix in the event that one asset is more than five percentage points above its intended allocation. Rebalancing is done more frequently in the event that one asset class moves in a major way, or if management decides to change the mix of the funds within your portfolio.

SoFi Investing Accounts

SoFi offers individual and joint investment accounts.

The SoFi retirement accounts include:

  • SoFi IRA
  • SoFi Roth IRA
  • SoFi Rollover IRA
  • SoFi SEP IRA

Click here and check out the SoFi Invest Platform.

SoFi Investment Returns

During 2018, SoFi demonstrated outstanding performance in the Nummo robo-advisor performance evaluation, clocking in at number one in both the moderate and conservative taxable account categories. The SoFi investing Moderate portfolio earned 9.52% last year, while the Conservative portfolio earned 10.61%.

Your returns will vary based upon when you begin investing and your asset allocation. Although, past returns aren’t an indicator of your future investment returns.

SoFi Fees

As previously mentioned, there are no investment management fees.

Typically, individual ETFs have small management fees. Yet, at SoFi your investment fund fees start at zero for the SoFi ETFs. While the Vanguard ETFs are all very low fee.

SoFi Mobile App

Your SoFi Invest account can be accessed by mobile app. You can download their mobile apps for iOS and Android either through the App Store or on Google Play.

Once your account has been set up, you will be guided through a process to set up a four-digit pin number that is specific to your mobile device.

You can even set up a Touch ID/Fingerprint sign-in on both Apple and Android devices that have fingerprint scanners. You must also enable Touch ID/Fingerprint on the app. Once you do, any fingerprints stored on the device can be used to access your account.

The SoFi app is great if you use SoFi Invest, have loans, or use their high yield cash accounts. There’s even a feature that allows you to track and categorize your spending.

Is SoFi Invest Safe?

Though your account is held with SoFi Wealth Management, a Registered Investment Advisor, the actual broker for the account is SoFi Securities, LLC, while the account custodian is Apex Clearing. Both are members of the Securities Investor Protection Corporation (SIPC), which protects your account from broker failure for up to $500,000 in cash and securities, including up to $250,000 in cash.

These are protections against company failure or malfeasance. All investments are subject to losses that arise from asset price declines.

Sign Up – How to Invest in SoFi

To open a SoFi Invest account, you need to be a US citizen or permanent resident alien. If you are a permanent resident alien, you’ll have to provide passport information as well as a US taxpayer ID containing a physical address to verify your identity. SoFi Wealth Management will also need to confirm your bank information, which is a typical requirement for investment brokerages of all types.

The SoFi automated investing sign-up process is completed entirely online:

  • Name and account set up
  • Choose between Auto Investing, which is the robo-advisor – or Active Investing where you choose and manage your own stocks and funds (we chose auto investing)
  • Select your goals and list your birthdate:
    • General investing
    • Emergency fund
    • Retirement

From this information, you can see the portfolio that SoFi recommends for you. The five investment portfolio include various percentages of stocks and bonds, depending upon your goals and age. Younger retirement-saving investors will have greater amounts of  stock investments while older investors and those saving for emergencies will have greater amounts of cash and bonds.

  • Conservative
  • Moderately Conservative
  • Moderate
  • Moderately Aggressive
  • Aggressive

The moderate taxable and retirement portfolios includes a 60% stock – 40% bond asset mix.

SoFi investing moderate asset allocation

The aggressive Strategy was 100% invested in stocks. We believe that a 100% stock portfolio is too risky for most investors. Fortunately, you can select your asset allocation after viewing the SoFi robo-advisor recommendations.

The SoFi Automated Investing sign up continues by choosing an account, completing your profile and verifying your identity.

Once the account is set us, you can transfer funds and begin investing.

More SoFi Invest and Money Offers

Following are two related products from the SoFi brand:

SoFi Stock Active Investing

If you’re looking to invest on your own in stocks and ETFs, the SoFi Active Investing option allows you to purchase stock bits. Stock bits are fractions of stocks. Instead of buying a certain number of shares, for instance, stock bits allow you to purchase a set dollar amount. There are zero commissions and you can start investing with $1.

SoFi Money

This additional SoFi product is a high yield savings account with zero fees. You can save, spend and earn through this bank-type product.


Is SoFi a good investment?

SoFi offers on of the best investing platforms with one of the best robo-advisors. SoFi Automated investing offers diversified investment choices, free investment management, and free financial advisors. Investing with SoFi also gives you access to self-directed investing.

How does SoFi Invest make money?

SoFi Invest makes money in a variety of ways including:
-Interest from univested cash.
-Rebates from investing partners.
-SoFi crypto charges a 1.25% fee that goes to SoFi Invest.

Can you buy SoFi stock?

You can buy stock through your Stock Bits without paying fees or commissions. You can even buy partial shares. SoFi is a private company so you can’t invest in the company directly.

Is SoFi really free?

Yes – you can invest without management fees, trading fees or commissions at SoFi invest.

SoFi Invest Review Pros and Cons

SoFi Automated Investing Pros

  • The zero management fee is a huge advantage. 
  • Access to financial advisors/consultants is attractive.
  • SoFi Wealth Management invests in stocks and bonds, the way robo-advisors typically do, but they also offer real estate and high-yield bonds which are rarer in the robo-advisory sphere. 
  • SoFi only requires one dollar to get started, making it a unique robo-advisor with zero fund management fees, $1 minimum, and financial advisors. 
  • Access to high yield savings accounts and other financial services makes the Sofi Invest automated investing platform more desirable.

Bonus; Top 5 Robo-Advisors With Low Investment Minimums

SoFi Automated Investing Cons

  • No tax-loss harvesting for non-retirement accounts.
  • No week-end phone customer service hours for SoFi Invest.
  • The aggressive portfolio is 100% invested in stocks while the conservative portfolio is 100% invested in bonds. The 100% stock aggressive portfolio is too risky for most investors. While the 100% fixed investment portfolio is too conservative for all but relatively short term investors. 
  • Limited account options. Many robo-advisors offer greater account selection.

SoFi Investing Review Wrap Up

The SoFi Invest robo-advisor could be an excellent choice for new and small investors. You can open up an account with as little as $1. The $0 account management fees are also beneficial for all investor—small or large alike.

SoFi also offers social events in large communities. Especially enticing for younger investors is the opportunity to chat with career counselors. Ellevest is the only other robo-advisor with this benefit.

Larger more seasoned investors may want to look elsewhere. While free account management is certainly appealing, the platform currently does not offer tax loss harvesting. This will be a decided disadvantage for investors with large positions in taxable investments.

As mentioned in this review, SoFi is also a P2P lending powerhouse. Since student loan refinances are SoFi’s specialty, this could be the perfect robo-advisor for recent college graduates with student loans they want to refinance, and who are looking to begin investing.

We recommend SoFi Invest, but with a bit of caution as it is one of the newer robo-advisors.

SoFi vs. Betterment – How it Compares

FeaturesBettermentSoFi Invest
OverviewGoals-based digital investment manager with access to financial advisors and cash management.Fee-free automated investment management robo-advisor platform with financial advisors.
Minimum Investment AmountNo minimum for Betterment Digital.$1
Fee StructureDigital-0.25%  AUMNo account management fees.
Free ServicesFree portfolio reviewFree account management and access to financial professionals
Top FeaturesDigital and hybrid investment management with financial advisors. All investors can text with financial advisors. Socially-responsible, income and smart beta portfolios. Tax loss harvesting. Cash management.Investment management with live advisors. Access to SoFi member benefits and career planning. Cash management.
PromotionsFree investment management promotionFree investment management at SoFI Automated Investing

*Disclosure: Please note that this article may contain affiliate links which means that – at zero cost to you – I might earn a commission if you sign up or buy through the affiliate link. That said, I never recommend anything I don’t believe is valuable.

Disclosure: Please note that this article may contain affiliate links which means that – at zero cost to you – I might earn a commission if you sign up or buy through the affiliate link. That said, I never recommend anything I don’t believe is valuable.

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