Starting your first investment can feel complicated, especially when you’re faced with hundreds of stocks and funds to choose from. But investing on SoFi can be much simpler than it seems. You don’t need to pick individual stocks, predict market movements, or build a portfolio with dozens of funds.
For many beginners, a small selection of diversified ETFs can provide a straightforward way to get started. SoFi also supports fractional shares, which means you can invest a specific dollar amount instead of needing enough money to buy a whole share.
Before getting started, remember that investing involves risk, and past performance does not guarantee future results. The investments discussed below are examples, not personalized financial advice. Consider your financial situation and do your own research before investing.
Beginner ETFs for Investing on SoFi
A simple portfolio can be built around a few broad ETFs, with each one serving a different purpose. Here are four ETFs commonly considered by long-term investors.
SCHB: Schwab U.S. Broad Market ETF
SCHB is designed to provide broad exposure to the U.S. stock market. By purchasing SCHB, you gain exposure to thousands of U.S. companies, ranging from major corporations such as Apple, Microsoft, Amazon, and Alphabet to smaller companies.
Its low expense ratio is another reason investors may consider it for a long-term portfolio.
SCHB can serve as a foundation because it provides broad diversification through a single investment rather than requiring you to purchase individual stocks.
VTI: Vanguard Total Stock Market ETF
VTI serves a similar purpose to SCHB by providing broad exposure to the U.S. stock market.
One advantage of investing on SoFi is the ability to purchase fractional shares. Rather than having to buy an entire share, you can invest a specific dollar amount. That makes ETFs with higher share prices more accessible to beginners.
For someone deciding between SCHB and VTI, either can provide broad U.S. market exposure. The important thing is understanding what you’re buying and choosing an investment that fits your strategy.
SCHG: Schwab U.S. Large-Cap Growth ETF
SCHG takes a more focused approach by emphasizing large U.S. companies with growth characteristics. Its holdings include major companies involved in areas such as technology and innovation.
Because growth-oriented investments can experience larger price swings, SCHG may be more appropriate for investors who have a long-term investment horizon and are comfortable with market volatility.
SCHG can complement a broad-market ETF by placing more emphasis on growth companies rather than the entire market.
SCHD: Schwab U.S. Dividend Equity ETF
SCHD takes a different approach by focusing on companies that pay dividends.
Rather than concentrating primarily on growth, dividend-focused ETFs invest in established businesses that return part of their profits to shareholders through regular dividend payments.
Those dividends can potentially be reinvested, allowing investors to purchase additional shares over time. Reinvesting dividends can contribute to the compounding effect that long-term investors seek.
SCHF: Schwab International Equity ETF
If you want additional diversification outside the United States, SCHF is another ETF to consider.
SCHF provides exposure to companies in developed international markets, including countries such as Japan, the United Kingdom, Germany, and France.
International exposure can help reduce your dependence on the performance of a single country’s economy. While international markets can also decline, investing across different regions can provide broader diversification.
How These ETFs Can Work Together
Each of these ETFs has a different role.
A broad U.S. market ETF such as SCHB or VTI can provide your core U.S. exposure. SCHG can add a stronger emphasis on growth companies, while SCHD focuses on dividend-paying businesses. SCHF can provide exposure to developed markets outside the United States.
There is some overlap between these investments, so you don’t necessarily need all four. A simpler portfolio may actually be easier to understand and maintain.
The key is to understand what each investment owns, why you are buying it, and how it fits into your overall strategy.
Why Fractional Shares Matter When Investing on SoFi
Fractional shares make investing on SoFi accessible even if you don’t have enough money to purchase a full share of an ETF.
For example, instead of waiting until you have enough money to purchase one complete share, you can invest a specific dollar amount. If you have $10 available, you can invest $10 rather than needing the full share price.
This can make it easier to start with a relatively small amount and gradually build your portfolio over time.
How to Buy Your First Investment on SoFi
Once you’ve decided what you want to buy, the actual process is straightforward.
1. Open the Invest Section
From the SoFi app’s main screen, tap Invest at the bottom of the screen.
You’ll be taken to your investment dashboard.
2. Find the Investment You Want to Buy
There are two ways to access the trade menu. You can tap the magnifying glass in the upper-right corner or select Explore and Trade in the middle of the screen.
Both options take you to the same trading area.
For this example, search for SCHG by typing its ticker symbol into the search bar.
As you type, SoFi will display matching investments. Select SCHG from the results to open its detail page.
3. Review the ETF
The ETF’s detail page shows information such as its current price, daily price change, and performance chart.
If you’ve never purchased the ETF before, you won’t have an existing position displayed. Instead, you’ll simply see information about the investment.
Take a moment to make sure you’ve selected the correct investment before placing your order.
4. Tap Trade and Select Buy
At the bottom-right of the screen, tap the Trade button.
You’ll see several options, including Buy, Sell, Recurring Buy, and Options.
For a basic first investment, select Buy.
If you’re new to investing, you generally don’t need to use options or more advanced trading features just to purchase a diversified ETF.
5. Choose Dollars Instead of Shares
On the buy screen, you’ll see your account information, available buying power, the current market price, and an estimated number of shares.
Look at the upper-right corner, where you can select how you want to place the order.
For a fractional-share purchase, choose Dollars. This allows you to enter the amount of money you want to invest rather than specifying a number of whole shares.
For example, if you enter $10, SoFi calculates the corresponding fractional share based on the applicable market price.
6. Enter Your Investment Amount
Enter the amount you want to invest.
The estimated share count will update as you enter the dollar amount, allowing you to see approximately how much of the ETF you’re purchasing.
You don’t need a large amount of money to begin. Fractional shares allow you to start with an amount that fits within your available buying power.
7. Preview the Order
After entering your investment amount, tap Preview.
The confirmation screen will display important details about the order, including the amount you’re investing, the account being used, the market price, and the estimated number of shares.
Review everything carefully before submitting the trade.
8. Confirm Your Purchase
Once you’ve confirmed that everything looks correct, use the confirmation control at the bottom of the screen to submit the order.
After the order is submitted, SoFi will confirm that your trade has been placed.
At that point, you’ve officially made your first investment.
Keep Investing Consistently
Making your first purchase is only the beginning. One of the most important parts of long-term investing is consistency.
Instead of worrying about whether the market will go up or down tomorrow, many long-term investors focus on regularly contributing money to their investments and maintaining a strategy over time.
You can start small and increase your contributions as your financial situation allows. The goal isn’t necessarily to make a perfect investment on day one. It’s to develop a sustainable approach that you understand and can stick with.
Final Thoughts on Investing on SoFi
Investing on SoFi doesn’t require you to become an expert stock picker before you begin. Broadly diversified ETFs can give beginners a relatively simple way to gain exposure to large portions of the market, while fractional shares make it possible to start with a modest amount of money.
Whether you choose one broad-market ETF or combine several investments, focus on understanding what you own and why you own it. Keep your time horizon in mind, consider the risks involved, and make investment decisions based on your own financial circumstances.
For many beginners, the biggest hurdle isn’t finding the perfect investment—it’s taking that first informed step and then staying consistent.
