ValueGurus - eToro launches a value-based smart portfolio

Broker eToro introduces to the offer Value Popular Investor, a portfolio offering individual investors long-term exposure to companies selected by influential financial figures, which are based on the so-called investing in value.

In a nutshell:

• Value Popular Investor offers exposure to the top 10 assets selected by some of the world's leading mutual funds and hedge funds using an approach value investing.
• Assets come from the quarterly 13F report submitted by all institutional investment managers with at least $100 million in assets under management where they disclose their positions.
• The wallet adds to eToro's offering portfolios of well-known traders that showcase the investment picks of Warren Buffet, Edgar Wachenheim and Carl Ichan.

What is the Value Popular Investors Portfolio

As an alternative to the current spread of social media content about what constitutes a "buy", eToro has created a portfolio based on the investment choices of world financial leaders and business influencers. eToro analyzed their most common buying choices by looking at 13F files⁽¹⁾ some of the leading mutual funds and hedge funds⁽²⁾including Baupost Group and ValueAct Capital. It also captured their major stakes in Value Popular Investor.

"We're seeing more and more financial content on Twitter and other social media channels about what constitutes a 'buy'. In an effort to help individual investors make more informed investment decisions, we wanted to provide them with a credible, publicly available tool that they can take into account when making investment decisions.” – explained Dani Brinker, Head of Investment Portfolios at eToro.

“The 13F reports are a great financial tool as they provide additional transparency about the composition of the portfolio and stocks selected by leading mutual funds and hedge funds. To help our users invest like them, we've used 13F data to create a fully managed portfolio that gives them exposure to what the best in finance are buying."

The ten stocks in the portfolio at inception have a weighted average market capitalization of over $415 billion. Include Google, Mastercard and Fiserv (full list here). The portfolio will be rebalanced every quarter - after the 13F reports are updated. It uses an automated and proven methodology and is not discretionary in the selection of assets.

Value Popular Investors joins eToro's existing range of portfolios that mirror the investment strategies of influential financial figures such as: Warren Buffett, Edgar Wachenheim i Carl Icahn.

EToro Smart Wallets

Smart wallets offer investors exposure to various market areas. Combining several assets, under a specific methodology and using a passive investment approach, eToro Smart Wallets are long-term investment solutions that offer diversified exposure with no management fees.

Initial investment starts at $ 500 and traders have access to tools and charts to track portfolio performance while eToro's social feed keeps them updated on sector developments. At the moment, the wallet is not available for US users.

76% of retail investor accounts lose money when trading CFDs with this provider. Consider whether you can afford the high risk of losing your money.

Additional information:

1. 13F: The Securities and Exchange Commission (SEC) Form 13F is a quarterly report that must be submitted by all institutional investment managers with assets under management of $100 million or more. It reveals their holdings in stocks and can provide information about what "smart money" is doing in the market.
2. Funds analyzed: Acre Capital Management; Appaloosa LP; Baupost Group LLC; Brave Warrior Advisors, LLC; Gardner Investments; Markel Corp; Oakcliff Capital Partners; Smead Capital Management, Inc; Starboard Value LP; ValueAct Holdings, L.P.

Note: This portfolio is not available to US users.

eToro is a multi-asset platform that offers both stock investing and CFD trading.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% 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 the high risk of losing your money.

Past performance is not indicative of future performance. The trading history shown is less than 5 full years and may not be sufficient as a basis for an investment decision.

Copy Trading is not synonymous with investment advice. The value of your investment may go up or down. Your capital is at risk.

eToro USA LLC does not offer CFDs and does not make any representations or be responsible for the accuracy or completeness of the content of this publication, which was prepared by our partner using publicly available information about eToro that is not specific to entities.