eToro has joined forces with fintech firm STRATxAI to unveil a groundbreaking portfolio named ‘Cutting-Edge.’
eToro has joined forces with fintech firm STRATxAI to unveil a groundbreaking portfolio named ‘Cutting-Edge.’
eToro has joined forces with fintech firm STRATxAI to unveil a groundbreaking portfolio named ‘Cutting-Edge.’
This collaboration brings the proprietary STRATxAI technology and analytical tools, previously exclusive to institutional investors, to the fingertips of eToro’s retail user base. The Cutting-Edge portfolio is going to identify the most high-value US stocks available on the eToro platform, leveraging the sophisticated capabilities of STRATxAI.
Dani Brinker, Head of Investment Portfolio at eToro, emphasized the company’s commitment to incorporating cutting-edge technology into their services. Brinker noted, “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.”
The ‘Cutting-Edge’ portfolio comprises a curated selection of 15 US stocks, which undergo a monthly rebalancing process. This rebalancing aims to deliver an allocation that consistently provides risk-adjusted returns, outperforming the S&P 500 benchmark. The STRATxAI backtest engine plays a pivotal role in this process, evaluating the performance of over 5,000 mid to large-cap US equities over the past two decades.
The stocks are meticulously assessed against a blend of five key factors that serve as positive indicators of future performance. These factors include Value, focusing on undervalued stocks; Quality, prioritizing strong financial fundamentals; Low-volatility, targeting stocks with lower market volatility; Liquidity, ensuring efficient trade execution; and Diversification, limiting exposure to three stocks per sector to spread risk.
Paul Clifford, CEO at STRATxAI, highlighted the potential of the STRATxAI engine, stating, “Our formidable STRATxAI engine has the computational and analytical power to curate unique investing portfolios such as Cutting-Edge.” He expressed excitement about offering this exclusive portfolio to eToro’s customers, empowering them to navigate the evolving landscape of innovation.
eToro’s Smart Portfolios, including Cutting-Edge, offer exposure to various market themes through a passive investment approach. With an initial investment starting from USD$500, investors gain access to tools and charts to track the portfolio’s performance. Additionally, eToro’s social feed keeps users informed about sector developments. It’s important to note that the Cutting-Edge portfolio is not available to US users.
This partnership showcases the commitment of eToro and STRATxAI to democratizing access to advanced investment tools and providing retail investors with opportunities to stay ahead in the ever-evolving financial landscape.
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