You should check out SCNBillboardConstraint
Updated Code
let textGeometry = SCNText(string: "Hello, World!", extrusionDepth: 1.0)
textGeometry.font = UIFont(name: "Arial", size: 2)
textGeometry.firstMaterial!.diffuse.contents = UIColor.red
let textNode = SCNNode(geometry: textGeometry)
// Update object's pivot to its center
// https://stackoverflow.com/questions/44828764/arkit-placing-an-scntext-at-a-particular-point-in-front-of-the-camera
let (min, max) = textGeometry.boundingBox
let dx = min.x + 0.5 * (max.x - min.x)
let dy = min.y + 0.5 * (max.y - min.y)
let dz = min.z + 0.5 * (max.z - min.z)
textNode.pivot = SCNMatrix4MakeTranslation(dx, dy, dz)
textNode.scale = SCNVector3(0.01, 0.01, 0.01)
let plane = SCNPlane(width: 0.2, height: 0.2)
let blueMaterial = SCNMaterial()
blueMaterial.diffuse.contents = UIColor.blue
plane.firstMaterial = blueMaterial
let parentNode = SCNNode(geometry: plane) // this node will hold our text node
let yFreeConstraint = SCNBillboardConstraint()
yFreeConstraint.freeAxes = .Y // optionally
parentNode.constraints = [yFreeConstraint] // apply the constraint to the parent node
parentNode.position = SCNVector3(0, 0, -0.5)
parentNode.addChildNode(textNode)
sceneView.scene.rootNode.addChildNode(parentNode) // add our text holder to the scene
It seems that applying billboard constraint directly to the text node resets its position and scale, so the text node gets huge and positioned at 0,0,0 relative to the camera. Don't know why :( But applying the constraint to the parent node works fine.