eToro launched a new AI-powered investment portfolio targeting major US companies
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The Israel-based social trading app eToro, recently introduced a new smart portfolio, which is powered by AI technology. The portfolio will allow investors to gain exposure to the stocks of some of the fastest-growing US companies. The portfolio will keep track of and provide exposure to 12 such firms, and it is tagged “InvestorAI-US.”
eToro launches its first AI-powered investment portfolio
According to eToro, the portfolio was launched in partnership with a startup from the UK called Bridgeweave. The company uses Artificial Intelligence to create automated investment solutions, primarily for crypto and equities investors. Such smart portfolios have been growing in popularity, and this is eToro’s first product of this kind, powered by Bridgeweave’s technology.
eToro further explained that the portfolio works by allowing investors to access the mentioned 12 companies’ shares with a robust capital structure. It offers consistent YoY sales growth, and it exhibits positive price momentum. With each month’s end, the basket of stocks contained within will be reshuffled in order to meet the criteria and always ensure that only the fastest-growing firms are targeted.
eToro also noted that the whole process would be done by AI, including the selection of which firms to include in the portfolio. That way, things like human error are eliminated, and users will gain exposure to the best-performing companies, even if that means less-known firms, as long as their growth rate is fit to be included in the portfolio. The AI will make all decisions based on the facts, not burdened by emotions, FOMO, or anything of the sort.
Some of the companies that were selected to be included in the portfolio at the time of launch include Paycom Software, McDonald’s, Johnson & Johnson, Array Technologies, and Monster Beverage Corp, among others. According to eToro, these stocks have a combined market cap of $18 billion.
The new portfolio’s description says that it aims to cater to investors who wish to gain exposure to the US equity market. The performance of the stocks contained within is measured against S&P 500, but the InvestorAI US Growth was designed to allow it to outperform over the medium-to-long term.
eToro also stated that the portfolio is currently unavailable to US users, not revealing when and if this will change.
Investors are satisfied with their portfolios
The company also recently conducted a survey that questioned participants about how satisfied they were with their investment portfolios, given the last year’s market downturns. Despite the difficulties of the financial industry, the majority of those who participated (69%) said that they feel confident about their portfolios. Furthermore, 67% said that they feel positive or are ambivalent regarding the prolonged bear market.
At the same time, 33% stated that they are less eager to invest due to the bearishness of the markets. Cyprus’ financial regulator, CySEC, also conducted a survey that questioned investors about their investment habits, and it found out that 31% of participants rely on the so-called finfluencers — social media influencers who often give advice on how to invest, what to buy, and alike.