SoFi's Next Breakout: The 2X Leveraged Play for Aggressive FinTech Investors

The Motley Fool

by newsfeedback@fool.com (Matt Frankel, CFP)

February 23, 2026

AI-Generated Deep Dive Summary

SoFi Technologies (NASDAQ: SOFI) has emerged as a standout performer in the financial sector, offering significant returns for long-term investors. With a recent pullback notwithstanding, the stock has delivered an impressive 180% return over the past three years, driven by strong revenue growth and profitability. Now, aggressive investors have a new tool to amplify their exposure to SoFi: the Direxion Daily SoFi Bull 2X ETF (NASDAQ: SOFA), which aims to deliver twice the daily returns of SoFi stock. This ETF is designed for those seeking higher rewards, but it comes with increased risk due to its leveraged nature. If SoFi gains 5% in a single day, investors in SOFA could see a 10% return—a potential boon for confident traders. However, this amplified exposure also means that any losses are magnified similarly. For those considering SOFA, understanding the risks is crucial. Leveraged ETFs are not suitable for all investors due to their volatility and inverse performance during market downturns. They are best used by short-term traders with a clear strategy, rather than long-term investors looking for stable growth. Investors should also be aware that leveraged ETFs can lose value over time due to compounding effects and fees. SoFi's underlying strength makes it an attractive target for such an ETF. The company has demonstrated consistent growth, with revenue up 37% year-over-year and a strong net margin of 17%. Its profitability is bolstered by robust loan originations, new member additions, and innovation across its financial services platform. While SOFA offers the potential for substantial gains, it requires careful consideration. The ETF's amplified returns are matched by amplified risks, making it essential for investors to fully understand their strategy before committing. For those willing to take on the risk, this could be a valuable tool in their portfolio—one that leverages one of finance's most dynamic companies.

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Originally published on The Motley Fool on 2/23/2026