eToro Smart Portfolios, previously known as CopyPortfolios, are a investment product offered by the broker eToro. eToro Smart Portfolios are financial products designed to automate thematical investments on specific markets or individual trader performance.
Smart Portfolios on eToro cater to both novice and experienced investors seeking an intuitive, hands-off investment solution thanks to no additional management fees and a hybrid allocation approach combining advanced algorithms and expert oversight.
What are the eToro Smart Portfolios?
eToro Smart Portfolios are professionally managed investment tools offered by the broker eToro, that bundle a diversified selection of assets based on specific market strategies. The eToro Smart Portfolios are designed to offer a simple and optimized solution for investors looking for alternatives to standard funds and ETFs.
Smart Portfolios are financial products offered by eToro to distribute your investment across multiple assets or individuals, using advanced algorithms and oversight by eToro’s Investment Committee to optimize performance.
The eToro Smart Portfolio are portfolio management systems that ensure proportional allocation based on the size of each user’s investment, making it an ideal choice for hands-off investing.
How do eToro Smart Portfolios work?
eToro Smart Portfolios work by allocating funds to a portfolio managed by eToro’s algorithms and investment committee. Investors authorize eToro to replicate trades through the eToro Smart Portfolio Instead of directly purchasing shares or handing over capital. eToro Smart Portfolios open and close closing trading positions automatically and proportionally into the investor’s account according to the portfolio’s strategy.
The eToro Smart Portfolios are periodically rebalanced by eToro with an hybrid approach. The active part of rebalancing the Smart Portfolios is managed by eToro experts, while the passive rebalancing of the Smart Portfolios is conducted with automated algorithms developed by eToro.
When you invest in a Smart Portfolio, your funds are distributed across the assets or traders included in the portfolio, following the predefined strategy. This may include the use of leverage, which allows exposure to larger positions than the capital invested, potentially amplifying both gains and risks. Every Smart Portfolio portfolio is also by eToro’s algorithms and experts to maintain the intended asset distribution.
Do Smart Portfolios have KIIDs?
eToro Smart Portfolios offer KIID-like documentation calleed Fact Sheet. The eToro Fact Sheet on Smart Portfolios include metrics such as monthly performances, drawdowns, popularity and risk levels to further understand how do Smart Portfolios work.
What is the difference between eToro Smart Portfolios and Funds?
The difference between eToro Smart Portfolios and Funds lies in the way the money is managed. eToro Smart Portfolios allow investors to retain control of the capital rather than handing it over to a fund manager, and instead eToro executes trades on behalf of the user mirroring the portfolio’s strategy within their own account.
The approach offered by eToro Smart Portfolios approach means that investors allocate a specific amount to a Smart Portfolio, and eToro automatically opens and closes positions in CFDs in the investor trading account.
The Smart Portfolio trades are proportionate to the user’s capital, allowing them to benefit from professional portfolio management while maintaining ownership and full visibility of their account. This distinction provides greater control and transparency compared to traditional funds.
Are eToro Smart Portfolio legit?
eToro Smart Portfolios are legitimate investment tools regulated under the same strict compliance standards as the broader eToro platform. The eToro Smart Portfolios are managed using advanced algorithms and supervised by the eToro Investment Committee to ensure optimal performance, transparency, and diversification.
The Smart Portfolios are offered by eToro under regulatory oversight from the FCA (UK) and CySEC (EU), two of the most respected and established financial regulators worldwide.
The potential returns of Smart Portfolios depend on the specific portfolio strategy and market conditions. For example, Market Smart Portfolios, which typically focus on long-term trends in stocks, indices, or commodities, are designed to deliver growth over time. However, no investment is risk free, and past performances are not an indication of future returns.
Are the eToro Smart Portfolios good for long term investing?
Yes, the eToro Smart Portfolios are good for long term investing. eToro Smart Portfolios are designed with a long-term investment horizon in mind, offer hands-off approach to investing and are actively monitored and rebalanced by eToro experts and algorithms, making them perfect for individuals seeking consistent growth over time.
A key advantage of eToro Smart Portfolios is flexibility. Investors can terminate their investment at any time without incurring additional costs or commissions, unlike traditional long-term passive investments like funds. This feature allows investors to manage their portfolio according to their financial goals while benefiting from long-term compounding and strategic asset allocation.
What are the types eToro Smart Portfolios?
There are three types of eToro Smart Portfolios: the eToro Market Smart Portfolios, the Top Trader Smart Portfolios and the eToro Partners Smart Portfolios. The eToro Market Smart Portfolios are based of real financial assets such as currencies, stocks, commodities, indices and ETFs, while the Top Trader Smart Portfolios follow the performances of thematically selected eToro Popular Investors, and the eToro Partners Smart Portfolios are investing strategies created by external partners.
The eToro Market Smart Portfolio portfolio is constructed and managed using complex algorithms that decide the assets, the parameters and the strategic allocation of capital, with periodic adjustments and rebalancing. Some of the most popular eToro Market Smart Portfolios are AI-Revolution (focused on companies developing AI-powered technologies and solutions), Big Tech (focused on large-cap tech companies) and InTheGame (focused on the gaming industry and technology).
The eToro TopTrader Smart Portfolios are based on the traders carefully selected using advanced algorithms, which monitor, insert, manage and automatically replace the best eToro traders within the portfolio under the supervision of the eToro’s Investment Committee. Some of the most popular eToro Top Trader Smart Portfolios are GainersQtr (focused on the best 50 quarterly gainers on eToro), CopiersPlusR4 (focused on profitable traders with a risk score of 4 and below) and TrendingR7 (focused on the top 10 fastest gainers by copiers on the platform).
The eToro Partner Smart Portfolios are created by professionals and are usually based on real funds or real investors portfolios. Some of the most popular eToro Partner Smart Portfolios are WannenBuffet-CF (focused on the Warren Buffet’s portfolio), CarlIcahn-CF (focused on Carl Icahn Enterprises, a company owned by Carl Icahn) and EWachenheim-CF (focused on Greenhaven Associates Inc, a company owned by Edgar Wachenheim).
What is the eToro Smart Portfolio minimum deposit?
The minimum deposit for an eToro Smart Portfolio is $500.
Investing in an eToro Smart Portfolio means replicating the trading strategies of the portfolio with eToro’s investment limits. For example, if eToro allows you to purchase fractional stocks for as little as $10, and the Smart Portfolio consists of 30 stocks, the minimum amount required to replicate the portfolio is $300. However, this does not account for differences in asset allocation, which could increase the overall minimum required to copy the portfolio strategy.
Some eToro Smart Portfolios may include CFD (Contract For Difference) positions. CFDs use leverage, and eToro requires that you maintain sufficient margin capital to replicate all positions proportionally, even if they remain open for extended periods.
To invest in eToro Smart Portfolios, you must first open an account, meeting eToro’s initial deposit requirement (typically $50, depending on your country). Afterward, you need to deposit sufficient funds to cover the specific Smart Portfolio investment.
What are eToro Smart Portfolio Fees?
The eToro Smart Portfolios charge fees and commissions depending on the assets and financial insturments being copied in the traders account. eToro Smart Portfolios may charge spreads, rollover fees and conversion fees. The eToro Smart Portfolio fees are listed below.
- Spreads: Spreads on Smart Portfolios are charged when CFD assets are copied into the trader account. Spreads are usually around 1% of the investment, meaning it’s 1$ per every 100$ spent.
- Rollover fees: Rollover fees are charged when Smart Portfolios based on CFDs are kept on the long term. Rollover fees are charged everyFees for keeping leveraged positions open overnight, applicable primarily to portfolios with significant CFD positions. For Market Smart Portfolios, which often involve holding stocks long-term, rollover costs are minimal or non-existent if leverage isn’t used. However, if leverage is applied, investors should monitor these fees as they can impact overall returns.
- Conversion fees: Conversion fees on the eToro Smart Portfolios are charged when replicating trades on assets not based on the USD, like UK stocks that are based on GBP.
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. 51% 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.
Trading history presented is less than 5 complete years and may not suffice as basis for investment decision. This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
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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.