Trading and investing platform eToro has partnered with fintech STRATxAI, specialists in intelligent investment systems, to launch a new portfolio.
Named ‘Cutting-Edge’, this portfolio leverages proprietary STRATxAI technology and analytical tools previously available only to institutional investors to identify the most ‘high-value’ US stocks on the eToro platform.
Dani Brinker, Head of Investment Portfolio at eToro, commented:
“At eToro, leveraging new technology is in our DNA and lies at the core of our mission to provide retail investors with tools that were previously available only to institutional investors. We have recently seen the launch of several partner portfolios, collaborating with companies at the forefront of financial analysis powered by AI. We are thrilled to welcome our new partner, STRATxAI, and to offer retail investors an innovative product that offers a refined exposure to the US market.”
The portfolio comprises 15 US stocks and is rebalanced monthly. The monthly rebalance aims to deliver an allocation that consistently delivers risk-adjusted returns that outperform the S&P 500 benchmark.
Each month, the STRATxAI backtest engine evaluates the performance of over 5,000 mid to large-cap US equities over the past two decades. The stocks are then assessed against a blend of five key factors that are positive indicators of future performance:
- Value: Identifying underappreciated stocks at a discount to their intrinsic worth, capitalising on potential undervaluation.
- Quality: Prioritising strong financial fundamentals, focusing on stable, profitable, and financially healthy businesses.
- Low-volatility: Targeting stocks with lower market volatility to reduce significant portfolio fluctuations.
- Liquidity: Assessing liquidity to maintain the ability for quick and efficient trade execution.
- Diversification: Limiting three stocks per sector to spread risk and mitigate the impact of sector-specific downturns.
Paul Clifford, CEO at STRATxAI, said:
“Investors want to be at the forefront of the digital and AI revolution, but are held back by the sheer computing power required to seize opportunities and the scale of high quality data needed. Our formidable STRATxAI engine has the computational and analytical power to curate unique investing portfolios such as Cutting-Edge. We are thrilled to offer this portfolio exclusively to eToro’s customers, empowering them to stay ahead in the ever-evolving landscape of innovation.”
eToro’s range of Smart Portfolios offer exposure to various market themes. Bundling together several assets under a defined methodology, and employing a passive investment approach, they provide long-term investment solutions that offer diversified exposure. Initial investment starts from USD$500 and any investors can access tools and charts to track the portfolio’s performance, while eToro’s social feed will keep them up-to-date on developments in the sector. This portfolio is not available to US users.
