Following on from my recent eToro Review 2017 article, i briefly touched on a feature called CopyPortfolios that eToro had introduced over the past year. I have since invested in one of the CopyPortfolios and decided to do an eToro CopyPortfolios review! Now before we continue i must stress the essentials as mentioned previously “All trading involves risk; only risk capital you are prepared to lose. Past performance is not an indication of future results. This post is not an investment advice.” Also Please note this article contains affiliate links which means I receive a profit if you sign up to eToro and make a deposit. This does not affect my review in anyway and all views expressed below are my own.
What are eToro CopyPortfolios
eToros CopyPortfolios are basically a product that bundles together a collection of financial assets which are managed by eToro’s investment committee. Each CopyPortfolio is rebalanced periodically to maximise the potential of returns for investors. The periods between each rebalancing is specific to each CopyPortfolio . It is aimed at those looking for a medium to long term investment vehicle. There are currently 3 different types of CopyPortfolios available:
- Top Trader CopyPortfolios : These are a group of CopyPortfolios that implement various methods of finding the eToros community’s top traders. For example it could be based on those most likely to generate an alpha in the next quarter (“GainersQtr CopyPortfolio “) or traders with a risk score of 4 and below who have shown a growth in the last month (“CopiersPlusR4 CopyPortfolio “).
- Market CopyPortfolios : These CopyPortfolios are built around an idea, a performance metric or algorithm that picks the top performing assets. To name a few there are ones that invest in Crypto Currencies (“Crypto CopyPortfolio “) or into the worlds biggest banks and financial institutions (“The Big Banks CopyPortfolio “) or into the worlds leading gaming companies (“InTheGame CopyPortfolio “).
- Partner CopyPortfolios : – These are built by eToros partners who conduct market analysis for the creation of investment products that reflect a specific strategy. For example these portfolios are collaborations with investment houses or copy public SEC filings of specific companies.
The minimum investment in CopyPortfolios is 1,000 USD.
My eToro CopyPortfolios Review
As mentioned in my last eToro article i like to add to my virtual portfolio before committing in my real portfolio. So i added this awhile back probably back in May and it exceeded my expectation. In my virtual portfolio it has currently gained 13.87%.
Unfortunately around the time i decided to invest the GBP to USD rate took a tumble so i was waiting for this to come back up. 5,000 USD is a lot of money to invest so i wanted the rate to be as good as possible and around the start of July i made an investment into the “InTheGame CopyPortfolio “. As mentioned above this is based on the worlds leading gaming companies and in the last 12 months has made an astonishing 62.85%!
So far in only 3 weeks i have made 8.53% so i am very pleased with this and really hope it continues to go this way. I am yet to invest in any other CopyPortfolios . I am tempted to add more to the “InTheGame CopyPortfolio ” or perhaps try the “BigTech CopyPortfolio ” which is made up of leading companies in the technology sector and is an area that i can relate to personally and in the past 12 months this gained 42.08%. The other option is to try one of the Top Trader CopyPortfolios but i am undecided with these as i noticed some of the people that the CopyPortfolio invests in also copy other users and these 2nd tiered copied people could go off the rails. Also if one of these copied traders starts failing massively because i’m not sure if you can stop copying a specific person in the CopyPortfolio or close trades out manually or if you would need to close out your entire CopyPortfolio ? If anyone knows the answer to this please let me know in the comments. Either way i think i prefer being able to manage copying individual users myself as per my strategy mentioned in my eToro Review 2017.
Conclusion of my eToro CopyPortfolios Review
I am very happy with my return so far from my eToro CopyPortfolio and if i get anywhere past 10% in the entire year i will be happy. If it manages to get above 50% i will be extremely happy. I will try to keep an update of my progress over the coming year in a future article. Do any of you use eToro and invest in CopyPortfolios or are considering it? I would love to know what you think of them so please let me know in the comments.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% 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 to take the high risk of losing your money.
Past performance is not an indication of future results.
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.