CopyPortfolios: Take your Automated Investments to the next Level
Do you find copy trading useful? You probably do. Being able to hand over your investment decisions to the top-performing traders can be a great advantage in the uncertain world of investing, for beginners and experienced investors alike.
Imagine if you could take that advantage to a whole new level. That’s what CopyPortfolios is about.
CopyPortfolios™ is a portfolio management solution that is designed to expand the palette of investment opportunities, while aiming to maintain consistency and control risk in the long term. The goal is to give investors even more diversity, which they can access efficiently and easily.
Get your Hands on Professionally Managed Investment Strategies
eToro’s portfolios provide ready-made, managed investment strategies consisting of different assets, such as stocks, cryptocurrencies, ETFs, and even individual traders (people-based portfolios). Backed by professional research by a team with an in-depth understanding of markets, the portfolios are chosen according to a predetermined theme or strategy, and are taken through careful selection procedures to ensure that only high-quality investments are included.
CopyPortfolios give you more ways to diversify your investments and reduce risk. eToro’s professional investment committee uses tailor-made ranking methodologies per theme to determine the weighting of each asset in the portfolios. Among others, risk management, hedging, and the relative market cap are some of the parameters that are considered.
On the eToro trading and investment platform , you will find a variety of long-term investment portfolios from which to choose, allowing you to make full use of a smart and innovative approach to personal investing.
The minimum amount that you can allocate to a CopyPortfolio is $2,000, and for some portfolios, it can be $5,000.
Find your Preferred Investment Portfolio
CopyPortfolios are created, based on predetermined investment strategies to fit various market environments and satisfy a range of investors’ appetites. On eToro, you can invest in three different types of CopyPortfolios:
Top Trader Portfolios are comprised of the top and most sustainable traders on eToro. It is like having the best of the best traders working for you.
You may be wondering how this is different from copy trading. It comes down to systematising what is already possible.
With copy trading, you need to choose the traders that you want to copy and then manage them over time. You can continue or stop copying traders according to whether they are or are not maintaining satisfactory results. So, with copy trading, there is still a degree of manual work involved.
With Top Trader Portfolios, on the other hand, machine-learning technologies automatically manage the copied traders for you. Top Trader CopyPortfolios consist only of traders who are chosen based on their track record and the portfolio’s predefined investment goals. Only the traders who meet and maintain the criteria can be part of the portfolio.
Market Portfolios comprise a collection of financial assets only, not traders. Market Portfolios can contain stocks, ETFs, indices, commodities, or currencies. Many Market Portfolios are built with a thematic investment approach, enabling the investor to participate in market sectors with favourable growth potential.
For example, the ShoppingCart Portfolio aims to capitalise on the rapidly expanding eCommerce sector that has tripled its value since 2014, and is now a multi-trillion-dollar industry. The InTheGame CopyPortfolio will give you exposure to the exciting gaming industry, one of the hottest markets in the world.
The CRISPR-Tech CopyPortfolio was created to benefit from the biotechnology sector via companies that are investing in the innovative gene-editing tool, CRISPR. And, if you would like to exploit the power of dividends in addition to potential capital gains, you can choose the DividendGrowth Portfolio.
Partner Portfolios are created and managed by eToro’s partners and mainly consist of financial assets. Partner Portfolios further enrich the investment possibilities for clients because more professional managers can take part in the CopyPortfolios revolution and provide their services to investors. For example, the WarrenBuffet-CF Partner Portfolio, which mimics Berkshire Hathaway’s buy-and-hold investments, is a tempting option for many people.
Innovative and Dynamic Investments for the Everyday Investor
While all investments are risky, this investment approach of constructing a balanced portfolio, tends to work well for most investors over the long term. What the experts have been doing all along is now available to the entire eToro community.
eToro does not charge extra management fees for CopyPortfolios, but the individual positions initiated within CopyPortfolios may incur the cost of spreads as usual. eToro offers 0% commission on long, non-leveraged stock, cryptocurrency, and ETF positions. The commission-free policy fully applies to CopyPortfolios as well, if financial regulation in the investor’s region permits investments in underlying assets.
Investing in CopyPortfolios on the eToro platform takes only a few clicks. Just find a portfolio that suits your needs, set the amount you want to allocate, and click invest. As with all investments, there is no guarantee that your CopyPortfolios investments will be profitable. Each portfolio’s risk score is displayed on the profile page, alongside its past performance. On the profile page, you can also read the CopyPortfolio methodology that explains the principles behind how the portfolio is built and managed. Make sure that you fully understand the risks as well as the benefits before making any investments.
CopyPortfolios can also be an excellent way to balance your overall investment goals. Traditional investors may find value in the crypto portfolios that give them quick access to a diversified crypto allocation. In contrast, if you are heavily invested in cryptos or currencies, you can use some of the stock weighted portfolios to offset your exposure in these markets. Such a strategy can help to protect your capital on a long-term horizon.
To learn more about eToro’s CopyPortfolios and other services, visit etoro.com .
CopyPortfolios™ is a portfolio management product. CopyPortfolios™ should not be considered as exchange-traded funds, nor as hedge funds.
The above content is intended for information and educational purposes only, and should not be considered investment advice or investment recommendation.