eToro wants to create portfolios using artificial intelligence

eToro started cooperation with Bridgewise, a generative AI stock analytics company, to launch "Fundamental-AI" – a portfolio that offers eToro users exposure to companies that are performing better than their industry peers.

Investment portfolios using AI

Using our own generative technology artificial intelligence, Bridgewise will analyze the 1000 largest companies on eToro in terms of market capitalization and will rank them based on forecasts of future performance, including quarterly reports, earnings calls and analyst research. As a result of this analysis, each company is assigned a numerical score that reflects the likelihood that its shares will outperform other companies in the industry. The most promising stocks will be allocated to the portfolio.

What is Fundamental-AI?

Fundamental-AI is a new addition to eToro's existing AI portfolio offering and the first to implement fundamental analysis at scale. The portfolio will consist of 40 stocks from different sectors and geographies and will be rebalanced monthly. All assets are offered as CFDs, consisting of long and short positions.

“Fundamental analysis is the basis for evaluating stocks and has always been time-consuming for individual investors. However, artificial intelligence is a game-changer because it can quickly process massive amounts of data from anywhere in the world, in any language.” – explained Dani Brinker, director of investment portfolios at eToro.

“By providing our users with a portfolio that includes both short and long positions, we aim to offer an investment approach that will provide the flexibility to adapt to changing market conditions and potentially generate returns whether prices are rising or falling. We look forward to using Bridgewise's insights to shape your monthly allocation.” – added Brinker.

Gaby Diamant, CEO and co-founder of Bridgewise, comments:

“Data analysis using artificial intelligence has the potential to offer more diversified options compared to traditional stock selection. We're excited to leverage our own technology and give eToro access to machine learning models to help process massive amounts of market information. By partnering with eToro, we are excited to be a leader in helping investors of all levels take advantage of this innovative, groundbreaking technology.”

Smart wallets they offer investors exposure to a variety of market topics. By combining several assets under a specific methodology and using a passive investment approach, they provide long-term investment solutions that offer diversified exposure. The initial investment begins from $500, and investors can access tools and charts to track portfolio performance while eToro social channel will keep them informed about developments in the sector. The wallet is not available to US users.