In a partnership with fintech specialist STRATxAI, eToro has unveiled its latest offering to retail investors - the 'Cutting-Edge' portfolio. Leveraging the power of STRATxAI's proprietary technology and analytical tools, this collaboration introduces an approach to identify high-value US stocks on the eToro platform.

Monthly Rebalancing for Consistent Outperformance

Comprising 15 selected US stocks, the 'Cutting-Edge' portfolio is set to be rebalanced monthly. The objective is clear - to consistently deliver risk-adjusted returns that outperform the S&P 500 benchmark. This monthly rebalancing is facilitated by the STRATxAI backtest engine, which evaluates the performance of over 5,000 mid to large-cap US equities over the past two decades.

Paul Clifford, CEO at STRATxAI, Source: LinkedIn

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 STRATxAI backtest engine considers five key factors in its assessment, all positive indicators of future performance. These factors include the identification of 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.

Diverse Investment Solutions Gain Traction

eToro's Smart Portfolios have gained popularity for providing exposure to various market themes. With an initial investment starting from USD $500, retail investors can access diversified, long-term investment solutions that bundle multiple assets under a defined methodology. The 'Cutting-Edge' portfolio, however, is not available to US users.

Investors can track the performance of the 'Cutting-Edge' portfolio through eToro's user-friendly tools and charts, while staying informed about sector developments through the platform's social feed.

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.”