eToro, in collaboration with fintech specialist STRATxAI, has unveiled an exciting new offering for retail investors called the ‘Cutting-Edge’ portfolio.
This innovative partnership harnesses STRATxAI’s proprietary technology and analytical tools to introduce a novel approach to identifying high-value US stocks on the eToro platform.
The ‘Cutting-Edge’ portfolio consists of 15 carefully selected US stocks and will undergo monthly rebalancing.
The primary objective is clear: to consistently deliver risk-adjusted returns that outperform the S&P 500 benchmark.
The monthly rebalancing process is facilitated by the STRATxAI backtest engine, which meticulously evaluates the performance of over 5,000 mid to large-cap US equities spanning the last two decades.
Dani Brinker, Head of Investment Portfolio at eToro, expressed enthusiasm about the collaboration, stating, “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 STRATxAI backtest engine takes into account five critical factors in its assessment, all of which are positive indicators of future performance.
These factors encompass identifying undervalued stocks based on intrinsic worth, prioritizing strong financial fundamentals, targeting stocks with lower market volatility, assessing liquidity for efficient trade execution, and ensuring diversification to mitigate sector-specific downturns.
While eToro’s Smart Portfolios have gained popularity for providing exposure to various market themes with an initial investment starting from USD $500, it’s important to note that the ‘Cutting-Edge’ portfolio is not available to US users.
Investors interested in the ‘Cutting-Edge’ portfolio can track its performance through eToro’s user-friendly tools and charts.
Additionally, they can stay well-informed about sector developments through the platform’s social feed, making it a comprehensive resource for staying on top of market trends.
Paul Clifford, CEO at STRATxAI, highlighted the significance of this partnership, saying, “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.”