Online broker eToro announced today it has launched seven ‘Alpha Portfolios’, a family of innovative AI-powered investment strategies built using advanced analysis of eToro’s proprietary retail trading data.

“We’re excited to give our users access to exclusive quant-driven strategies typically used by hedge funds and institutional investors with the new Alpha Portfolios. These kinds of strategies have long been out of reach for retail investors, as they normally have high entry barriers, costly management fees, restrictive lock-up periods and less transparency in terms of asset allocation,” said Shay Heffetz, Director of Quantitative Investment Strategies at eToro. “But what sets these portfolios apart is how we’ve combined AI with one of the largest retail trading datasets in the world – an edge that few others have. We’re in a strong position to apply AI in a way that delivers real, actionable value to retail investors .”

As a global trading and investing platform with 40 million registered users, eToro is able to aggregate anonymised retail trading data across diverse geographies and stock markets – resources that are not available to traditional fund managers. The Alpha Portfolios use advanced machine learning models to identify patterns and behavioural inefficiencies in eToro’s vast data pool, in order to systematically adapt their strategies to generate ‘alpha’, meaning better returns than the market.

Eligible users can invest in eleven Alpha Portfolios in total, each employing a unique strategy designed to perform well in different market environments:

Directional strategies:

• Momentum L-S is a long/short US equity strategy that dynamically selects high-momentum stocks for long positions while shorting underperformers.
• OutSmartNSDQ is a technology-focused long/short strategy that aims to outperform the Nasdaq while providing downside protection.
• NasdaqAI-Inverse is a strategy designed to protect investors from market downturns by shorting 50 stocks in the Nasdaq 100 that are likely to decline in value.

Market-neutral strategies:

• Sector Neutral is a long/short strategy that seeks low correlation to overall market trends, with the goal of delivering low volatility and consistent returns. There is also a 2x leveraged version, SectorNeutral-X2.
• Sector Gurus is a long/short strategy that targets volatile yet high-performing stocks within the S&P 500. There is also a 2x leveraged version, SectorGurus-X2.

Each portfolio is rebalanced monthly, using the latest data and updated AI signals to ensure they remain aligned with market conditions and the portfolio’s specific goals.

Initial investments start from US $10,000. There are no management fees, performance fees, or lock-up periods.