EToro taps machine learning to offer 'algo-funds'

Source: eToro

eToro, the world’s leading social trading network, is entering the world of thematic investing with the launch of CopyFunds.

CopyFunds™ work by bundling together financial assets of any kind, under one chosen strategy or theme, and are created and traded on eToro .

CopyFunds will be divided into Top Trader CopyFunds™; comprising the best performing and most sustainable traders on the network and Market CopyFunds™ made up of specially-selected instruments such as stocks, commodities or ETFs allowing investors to track a wide array of sectors around a defined market strategy.

Top Trader CopyFunds™ is built using machine learning technology that selects the best performing traders on the eToro network.
CopyFunds™ enable investors to invest in a bundled group of high-performing traders as well as predefined market strategies. CopyFunds™ aim to help investors minimise long-term risk and promote opportunities for growth by creating a diversified investments. CopyFunds™ will be analysed in depth and rebalanced automatically to maximise the potential of returns for investors.

The availability of CopyFunds™ addresses the way investors - especially millennials - intend to trade in the future. Research from thought leadership consultancy, Roubini ThoughtLab, shows that one in four (26%) investors plan on following the trading strategies of others using social trading - increasing to nearly a third (30%) amongst millennials. While one in five (21%) plan to rely more on robo-advice than professional advisors[1] by 2021 .
Speaking about the launch of CopyFunds™, CEO and founder of eToro, Yoni Assia said: “We have dedicated the last decade to shaking up the world of trading. With the launch of CopyFunds™, we’re taking aim at a closed and traditional fund management industry by combining the wisdom of the crowd and machine learning.”

The first CopyFunds™ are available to invest in from $5,000. A full list of funds, including factsheets, will be available at launch.

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