eToro Launches OilWorldWide Portfolio for Retail Investors

As oil prices continue to remain volatile, Multi-Asset Multi-Asset Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically Read this Term investment platform eToro announced this Tuesday that it has launched a new long oil portfolio so that retail investors can have access to the oil market.

In its statement released today, eToro said that it has launched the new product in response to the unprecedented price movements in the US oil market which saw prices go into the negative territory earlier this month for the first time in history. This significant drop was a result of the coronavirus pandemic, which has destroyed around a third of global fuel demand since early March.

eToro’s OilWorldWide portfolio

In particular, the portfolio, called OilWorldWide, will give retail investors exposure to 20 global companies across the oil sector, which each represent different stages of production. The portfolio also includes oil-related instruments such as two ETFs and an oil futures contract.

The minimum investment for eToro’s OilWorldWide portfolio is $2,000. According to the company, 85 per cent of the portfolio covers 20 of the largest oil companies in the world by market cap.

The remaining 15 per cent is allocated to oil ETFs, including the Energy Select Sector SPDR and SPDR S&P Oil and Gas Exploration and Production. It also encompasses the oil futures contract available on eToro.

Commenting on the launch, Yoni Assia, CEO and Co-founder of eToro, said in the statement: “The ongoing COVID-19 crisis has dramatically shifted oil demand and this is having a knock-on effect on oil-dependent industries and companies. Is this really a new world order or just a temporary situation caused by the unprecedented crisis the world is trying to navigate?

“In response to the strong demand we’ve seen from our client base asking for exposure to this part of the market in a regulated way, we have launched this portfolio. Many are viewing the low oil prices and impact this has had on some company’s share prices as a buying opportunity.”