CopyPortfolios are a relatively new investment product from the social trading platform eToro. A CopyPortfolio is much like an ETF, except it’s not traded on an exchange. A CopyPortfolios groups together a number of assets and allows you to invest in them.
On eToro you can invest in stocks, commodities, etfs, forex and indicies – CopyPortfolios invest in these assets based on an underlying strategy put together by professional investors.
I thought I would highlight some of these different strategies on offer.
What if you were to invest across all the top stocks in the world? Well with the AllStocks CopyPortfolio you can do something like that. The fund is made up of the top indices around the world, such as the UK100 and NSDQ100. If you generally believe that the worlds stock markets will increase in value over time, then this could be the CopyPortfolio for you. This year, the portfolio has so far seen a return of 7%.
This fund has been developed by Quantitative portfolio managers. Quantitative finance seems to be all the rage these days. It’s in it’s very early stages but i’m predicting that most investment will be quantitative based in the not too distant future. This CopyPortfolio is managed by the french investment firm WeQuant.
Do you believe that technology companies are the future? Will they continue to grow? If you think so then check out the BigTech CopyPortfolio. This fund is made up of popular tech stocks. Think companies such as Apple, Netflix, Amazon, Google etc. So far this has been one of the best performing CopyPortfolios on etoro. This one is particularly interesting to me as I always love investing in products that I use and love to use – which are usually in the tech space.
This CopyPortfolio is based on the SEC filings from Carl Icahn Enterprises. If you’re a fan of Carl and like what he invests in, check out this CopyPortfolio. It’s entirely filled with stocks, including stocks in Carl Icahn Enterprises.
This CopyPortfolio is managed by Israeli investment house – Meitav Dash. The fund aims to beat the MSCI ASWI index which is a benchmark for the world equity markets. This fund is entirely invested in ETFs.
These are just some of the CopyPortfolios available on eToro. There are also funds which aggregate the most popular and top performing traders on eToro, allowing you to automatically copy thousands of trades in one go.
I expect we’ll see many more CopyPortfolios in the future – etoro is allowing investment managers to sign up and create their own CopyPortfolios. Which will of course offer profit sharing if people choose to invest in your CopyPortfolio.
If you’re interested in trying out CopyPortfolios and not actually investing, here’s a tip – you’re able to invest in CopyPortfolios using virtual money. eToro offers a free virtual account that works just like a real account and trades in the same way. This way you’ll be able to test drive different CopyPortfolios before plonking down any cash. You can grab a free virtual etoro account here.