Teaming up with fintech specialist STRATxAI, eToro has introduced its latest offering for retail investors – the ‘Cutting-Edge’ portfolio. This collaboration harnesses the capabilities of STRATxAI’s proprietary technology and analytical tools to implement a strategy for identifying high-value US stocks on the eToro platform.
The ‘Cutting-Edge’ portfolio consists of 15 carefully selected US stocks and undergoes monthly rebalancing. The primary objective is to consistently deliver risk-adjusted returns that surpass the S&P 500 benchmark. The monthly rebalancing process is facilitated by the STRATxAI backtest engine, which assesses the performance of over 5,000 mid to large-cap US equities spanning the last two decades.
The STRATxAI backtest engine evaluates five crucial factors as positive indicators for future performance. These factors include the identification of undervalued stocks based on intrinsic worth, prioritization of strong financial fundamentals, targeting stocks with lower market volatility, assessment of liquidity for efficient trade execution, and ensuring diversification to mitigate sector-specific downturns.
eToro’s Smart Portfolios have garnered popularity for offering exposure to various market themes. With an initial investment starting at USD $500, retail investors can access diversified long-term investment solutions that bundle multiple assets under a defined methodology. However, it’s important to note that the ‘Cutting-Edge’ portfolio is not available to users in the United States.
Investors can monitor the performance of the ‘Cutting-Edge’ portfolio using eToro’s tools and charts, while also staying abreast of sector developments through the platform’s social feed.