The fintech company that recently went public is introducing machine learning-based strategies.
The new tool analyzes 3.5 million eToro users, bringing hedge fund-style strategies to retail investors.
Why is eToro share price going down today? Let's check current eToro stock quote
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trading platform eToro (NASDAQ: ETOR) has introduced 7 new investment portfolios powered by artificial intelligence, built on the analysis of its retail trading data, the company announced today (Wednesday).
However, the entry threshold may be too high for many small investors.
eToro Launches AI-Driven
Investment Portfolios Using Retail Trading Data
The Alpha
Portfolios represent eToro's attempt to democratize quantitative investment
strategies typically reserved for hedge funds and institutional investors. The
offerings utilize machine learning algorithms to analyze patterns within
eToro's database of retail trading activity from its registered
users worldwide.
"We're
excited to give our users access to exclusive quant-driven strategies typically
used by hedge funds and institutional investors with the new Alpha
Portfolios," said Shay Heffetz, Director of Quantitative Investment
Strategies at eToro. "These kinds of strategies have long been out of
reach for retail investors, as they normally have high entry barriers, costly
management fees, restrictive lock-up periods and less transparency in terms of
asset allocation."
According
to the company, this dataset provides insights unavailable to traditional fund
managers, according to the company. The machine learning models identify
patterns and behavioral inefficiencies within this data pool to systematically
adapt investment strategies aimed at generating alpha, or returns exceeding
market performance.
Portfolio Offerings
The seven portfolios fall into two main categories. Directional strategies include
Momentum L-S, which takes long positions in high-momentum US stocks while
shorting underperformers, and OutSmartNSDQ, a technology-focused approach
targeting Nasdaq outperformance with downside protection.
Performance of the Momentum L-S. Source: eToro
Market-neutral
strategies comprise Sector Neutral, designed for low market correlation and
consistent returns, and Sector Gurus, which targets volatile but
high-performing S&P 500 stocks. Both neutral strategies offer leveraged
versions with 2x exposure.
NasdaqAI-Inverse
provides a defensive option by shorting 50 Nasdaq 100 stocks identified as
likely to decline during market downturns.
Portfolio
Name
Strategy
Type
Description
Momentum
L-S
Directional
Long/short US equity strategy
selecting high-momentum stocks for long positions while shorting
underperformers
OutSmartNSDQ
Directional
Technology-focused long/short
strategy targeting Nasdaq outperformance with downside protection
NasdaqAI-Inverse
Directional
Defensive strategy shorting 50
Nasdaq 100 stocks likely to decline during market downturns
Sector
Neutral
Market-Neutral
Long/short strategy seeking low
market correlation for consistent, low-volatility returns
Each
portfolio undergoes monthly rebalancing using updated data and AI signals to
maintain alignment with market conditions. Minimum investments begin at
$10,000, with no management fees, performance fees, or lock-up periods imposed
on investors.
The
mentioned amount may be too high for many investors. However, it’s worth noting
that with this product, eToro aims to compete with traditional asset managers.
It offers retail investors institutional-style strategies that would normally
be unavailable to them or would require significantly higher entry thresholds.
eToro Wastes No Time After
IPO
Although
less than a month has passed since
eToro’s rather strong IPO on Wall Street, the now publicly traded company
is moving quickly to please shareholders. The recently announced AI-driven
portfolios mark another product update in just a few weeks.
Online
trading platform eToro (NASDAQ: ETOR) has introduced 7 new investment portfolios powered by artificial intelligence, built on the analysis of its retail trading data, the company announced today (Wednesday).
However, the entry threshold may be too high for many small investors.
eToro Launches AI-Driven
Investment Portfolios Using Retail Trading Data
The Alpha
Portfolios represent eToro's attempt to democratize quantitative investment
strategies typically reserved for hedge funds and institutional investors. The
offerings utilize machine learning algorithms to analyze patterns within
eToro's database of retail trading activity from its registered
users worldwide.
"We're
excited to give our users access to exclusive quant-driven strategies typically
used by hedge funds and institutional investors with the new Alpha
Portfolios," said Shay Heffetz, Director of Quantitative Investment
Strategies at eToro. "These kinds of strategies have long been out of
reach for retail investors, as they normally have high entry barriers, costly
management fees, restrictive lock-up periods and less transparency in terms of
asset allocation."
According
to the company, this dataset provides insights unavailable to traditional fund
managers, according to the company. The machine learning models identify
patterns and behavioral inefficiencies within this data pool to systematically
adapt investment strategies aimed at generating alpha, or returns exceeding
market performance.
Portfolio Offerings
The seven portfolios fall into two main categories. Directional strategies include
Momentum L-S, which takes long positions in high-momentum US stocks while
shorting underperformers, and OutSmartNSDQ, a technology-focused approach
targeting Nasdaq outperformance with downside protection.
Performance of the Momentum L-S. Source: eToro
Market-neutral
strategies comprise Sector Neutral, designed for low market correlation and
consistent returns, and Sector Gurus, which targets volatile but
high-performing S&P 500 stocks. Both neutral strategies offer leveraged
versions with 2x exposure.
NasdaqAI-Inverse
provides a defensive option by shorting 50 Nasdaq 100 stocks identified as
likely to decline during market downturns.
Portfolio
Name
Strategy
Type
Description
Momentum
L-S
Directional
Long/short US equity strategy
selecting high-momentum stocks for long positions while shorting
underperformers
OutSmartNSDQ
Directional
Technology-focused long/short
strategy targeting Nasdaq outperformance with downside protection
NasdaqAI-Inverse
Directional
Defensive strategy shorting 50
Nasdaq 100 stocks likely to decline during market downturns
Sector
Neutral
Market-Neutral
Long/short strategy seeking low
market correlation for consistent, low-volatility returns
Each
portfolio undergoes monthly rebalancing using updated data and AI signals to
maintain alignment with market conditions. Minimum investments begin at
$10,000, with no management fees, performance fees, or lock-up periods imposed
on investors.
The
mentioned amount may be too high for many investors. However, it’s worth noting
that with this product, eToro aims to compete with traditional asset managers.
It offers retail investors institutional-style strategies that would normally
be unavailable to them or would require significantly higher entry thresholds.
eToro Wastes No Time After
IPO
Although
less than a month has passed since
eToro’s rather strong IPO on Wall Street, the now publicly traded company
is moving quickly to please shareholders. The recently announced AI-driven
portfolios mark another product update in just a few weeks.
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
United Fintech Scores Sixth Backer Days After Barclays Deal
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
