eToro launches Fintech portfolio
Online trading and investing platform eToro today announced the launch of Fin-Tech, a portfolio offering exposure to fintech companies.
“Arguably one of the most disruptive trends of the 21st century, the fintech industry provides an interesting diversification opportunity for investors as it combines the strength of the ever-growing tech industry with the stability of more traditional financial institutions,” explained Dani Brinker, Head of Investment Portfolios at eToro.
“This new portfolio offers users a carefully selected mix of top-performing companies from a variety of verticals within the fintech ecosystem, including paytech, insurtech, digital banking and trading. As a fintech company, we are excited to give our users the opportunity to invest in companies advancing the mission of opening global financial markets.”
To create the portfolio, eToro’s team of investment experts handpicked the 40 fintech companies leading the fintech revolution taking into consideration several factors, including market capitalization, liquidity parameters, and analyst ratings. The initial allocation includes Block, Lemonade, Adyen, and Xero, as well as new players such as Stone, Nexi and SoFi, and it will be rebalanced on an annual basis.
Fin-Tech is a new addition to eToro’s existing offering of traditional finance portfolios such as InsuranceWorld, Private Equity, The Big Banks, Real Estate Trusts. eToro’s Smart Portfolios offer investors exposure to various market themes. Bundling together several assets under a defined methodology, and employing a passive investment approach, eToro’s Smart Portfolios are long-term investment solutions that offer diversified exposure with no management fees.
Initial investment starts from USD$500 and investors can access tools and charts to track the portfolio’s performance, while eToro’s social feed will keep them up-to-date on developments in the sector. For now, this portfolio is not available to US users.