XtremeWeather, a portfolio offering exposure to companies resistant to extreme weather conditions

Platform eToro launched XtremeWeather – a new portfolio providing individual investors with exposure to companies that are performing best in the face of increasingly frequent and more severe extreme weather events.

XtremeWeather resistant to climate change

With NASA announcing that last summer was the hottest on record*, the impact of extreme weather on our planet and everyday life is becoming increasingly clear. Such serious, abnormal meteorological phenomena deviate from average weather patterns and include, among others: hurricanes, fires, droughts, floods, heat waves and others.

The XtremeWeather portfolio includes 30 stocks in key industries such as renewable electricity, industrial machinery, materials and components, fertilizers and agricultural chemicals, retail home improvement services, electrical components and equipment, and gas. These stocks are at the forefront of supporting recovery and normalization after extreme weather events. To construct this portfolio, the team evaluated thousands of stocks, ranking them based on criteria including market capitalization, ESG rating, liquidity parameters, analyst rankings and 12-month sales growth. 

Dani Brinker, Director of Investment Portfolios at eToro, commented:

2023 will be remembered as the year of climate change. From the effects of El Niño in Australia to floods in Italy and wildfires on Maui, almost no continent has been immune. 

The reality of climate change has created a growing demand for resilience and recovery solutions. Extreme weather events are forcing policymakers to invest or regulate to combat climate change. With the upcoming COP28 global climate conference, we wanted to offer retail investors the opportunity to invest in climate-resilient portfolios and diversify into industries that will help rebuild our cities, communities and surrounding nature after these extreme climate events.

The portfolio will be rebalanced annually or on demand to maintain relevance and optimize performance. Taking into account the unpredictability of weather phenomena and the impact of any new economic and government policies, the allocation strategy distributes equal weight to all 30 stocks (3,33%). This approach aims to reduce concentration risk and increase the overall resilience of the portfolio.

The initial investment starts at $500 and investors have access to tools and charts to track portfolio performance while eToro social channel will keep them informed about developments in the sector. 

What are eToro investment portfolios

EToro Smart Wallets offer investors ready-made, fully allocated exposure to various market paths. By combining several assets within a specific methodology and using a passive investment approach, EToro Smart Wallets they are becoming long-term investment solutions, offering diversified exposure without asset management fees.

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.

For now, this portfolio is not available to US users.
(*) NASA Global Climate Change (source): NASA announced that the summer of 2023 was the hottest on Earth since global records began in 1880.

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