AOT’s SOFL ETF Puts a Leverage Spin on Software Leaders

How SOFL ETF Works

The fund seeks 2x the daily performance of the AOT VettaFi Software Platform Index, a custom-built benchmark tracking 50 leading software-driven enterprises at the heart of the digital economy.

These companies develop or rely on scalable software platforms to power vital functions like cloud infrastructure, data processing, e-commerce, and customer engagement.

From SaaS giants to digital backbone providers, this index is purpose-built to capture the growth of businesses that scale without limits.

SOFL uses a mix of total return swaps and listed options to achieve leveraged exposure, resetting daily to maintain its 2x target. This makes it a short-term tactical tool—not a long-term hold.

Traders can use SOFL to:

• Amplify daily gains (and losses) tied to the software platform sector
• Gain leveraged exposure with less upfront capital

SOFL Index Snapshot

As of July 1, 2025, the AOT VettaFi Software Platform Index features 50 constituents representing the world’s leading software-driven enterprises, with a combined market capitalization of $20.86 trillion (adjusted: $19.80 trillion) and a dividend yield of 0.45%.

The index is heavily U.S.-focused, with 89.23% of its weight in American companies, followed by exposure to China (5.12%), Germany (4.02%), the United Kingdom (1.08%), and Israel (0.56%).

Top holdings include NVIDIA (6.83%), Apple (6.74%), Meta Platforms (6.70%), and Amazon (6.68%), all of which are central to cloud computing, AI, and consumer platforms.

Rounding out the top ten are Microsoft, Alphabet, Netflix, Visa, MasterCard, and SAP, highlighting the breadth of the index across digital infrastructure, payments, and enterprise solutions.

Why Bet on Software Platforms?

1. Low Marginal Costs, High Margins: Software platforms scale with virtually no additional cost per user. That allows for strong revenue growth, high margins, and less reliance on debt.
2. AI-Driven Innovation: Generative AI is driving new waves of innovation. As investor focus shifts from hardware to application layers, software is positioned to benefit most from AI’s transformative impact.
3. Strategic Scalability: While physical goods face rising costs with growth, digital products scale cheaply. This gives software platforms a powerful long-term advantage in an increasingly digital world.

“This is the first daily leveraged ETF to utilize a custom-made index optimized for daily leverage,” said AOT Invest.

About AOT Invest

AOT Invest is an ETF sponsor focused on developing innovative, high-conviction strategies targeting scalable business models and next-generation investment themes. Visit aotetf.com for more information.

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision. 

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.