eToro's Smart Portfolios (formerly known as CopyPortfolios) is the online brokerage's premier portfolio management tool seen as important and beneficial to its users. By investing in these portfolios, traders instantly copy numerous assets as suggested by a prearranged and proven investment strategy.
This exclusive investment approach is designed to help traders diversify their portfolios, benefit from current market opportunities and lessen long-term risk, by following an already proven investment strategy. In order to achieve full potential of this trading strategy, every eToro Smart Portfolio is rebalanced regularly. More information about this thematic investment can be found in this page and once your done, you can also read our assessment of eToro for more information about the features of this broker.
|🔠 Types||Top Trader, Thematic Market, Partner|
|💰 Minimum Investment||$500|
|🛑 Closing Fees||None|
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78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
How Does Smart Portfolios Work?
The Smart Portfolios offered by eToro allow investors to take advantage of predetermined, fully assigned exposure to several market themes. A diversified asset mix bundled under a defined investing methodology, eToro's Smart Portfolios offer diversified exposure, long-term investment solutions with zero management fees while engaging a passive investment tactic.
Remember: When it says, "market themes", it refers to a bundle of industry assets. For example, the "Crypto Portfolio", which is a collection of the largest cryptocurrencies, is measured by their market cap.
How is Smart Portfolios Managed?
Employing almost the same strategy as the usual investment portfolio, eToro's Smart Portfolio funds are also managed by a team of experienced financial managers who decide where to invest the fund.
How Much Is the Minimum Amount to Invest?
Since several positions will be opened under your name as Portfolios performs better when involved in several trades mirroring the actions of multiple traders, the required minimum account to invest is $5,000 for Top Trader Portfolios and $500 for both Thematic Market Portfolios and Partner Portfolios.
Filtering Results Based on Interest
Since there are a variety of Smart Portfolios to choose from, you can use the platform to filter the results based on your interest. Using this filter, you can select the industries or sectors that apply so you can get more refined results that are based on your preferences.
The following choices are available on the filter:
- Financial Services
- Med Tech
- Consumable Goods
- Durable Goods
- Media Services
Can I Still Remove Funds from the Portfolio?
No. Removing funds included in a portfolio investment is impossible. The only way is to close down the investment by going to the settings page of your portfolio and clicking "Close Investment".
Remember: You also cannot close individual positions in your portfolio. Closing the investment completely will be the only possible way.
What Is the Smart Portfolio MetaverseLife of eToro?
eToro recently launched its new metaverse-themed Smart Portfolio called the MetaverseLife. This portfolio gives traders an opportunity to achieve longstanding exposure to both crypto assets and stocks in the industry of the metaverse.
In financial term, the metaverse is a virtual universe where users and traders are represented by avatars which explores, interact — both economically and socially — with other individuals in the same metaverse.
Technology giants such as Facebook and Microsoft are starting to create their own metaverse with the Meta Platform for Facebook and MESH for Microsoft.
In eToro's MetaverseLife portfolio, cryptos and stocks make up the key components of the metaverse.
How Are Returns Generated from Smart Portfolios?
Your equity will reflect your profit and loss as a result. If you decide to close your investment, your profit will be realized. This will be credited into your account.
Types of eToro Smart Portfolios
Currently, there are 3 smart portfolio types that can be traded on eToro's investment platform:
- eToro Thematic Market Portfolios: This specific type of portfolio is comprised of CFD stocks, commodities, indices and ETFs. The algorithm behind this market copyportfolio is managed by eToro's skilled investment committee. Assets and capital are moved and managed by these complex algorithms, which invest the investors' money tactically. Assets are replaced when they need to be.
- eToro Partner Portfolios: Unlike the Market CopyPortfolios, the funds in this type of smart portfolio are managed by fund managers who are partners with the investors and not by eToro's investment team.
- eToro Top Trader Portfolios: CopyPortfolios of this type allow successful eToro traders' strategies to be copied from top traders. Several algorithms are used to evaluate the top traders regularly in order to ensure maximum results. Through algorithms, those investors whose strategies are copied are selected based on a few key factors. The eToro investor committee supervises these algorithms.
How Does a Re-balance Help a Portfolio?
Since an asset's value changes over time, it wanders away from its target value as it fluctuates. With the help of "rebalancing", it maintains the portfolio's asset allocation ratio and upholds its strategy by closing and opening positions occasionally.
When Does the eToro Smart Portfolio Re-balance?
Since the re-balancing frequency varies by one portfolio to the next, it is best to check your portfolio's page on eToro to find out how frequent it would be in the future.
Is There a Fee When Closing a Portfolio?
In contrast to a traditional investment house or the usual brokerage firm, there are no management fees associated with investing in or closing a portfolio. The underlying crypto transactions initiated by a portfolio, however, are subject to eToro's spreads.
Are These Smart Portfolios a Short or Long-term Investment?
These are considered long-term investments. Since Smart Portfolios are geared toward a long-term strategy, they are appropriate for investors looking to generate profit from a passive investment approach.
eToro Smart Portfolios Explained Further
eToro Smart Portfolios employs a simplified trading strategy when investing your money in appropriate options while making sure that risk is adequately managed. You can choose from three types of eToro Smart Portfolios to invest your fund. Despite each type being different from the other, all three have the same objective: to manage your assets under an expert's guidance, so you can reach the maximum potential of your investment.
So, are you ready to invest in a Smart Portfolio?
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.
Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.