Last week,eToro announced it has joined forces with WisdomTree to launch a new investment portfolio designed to provide a diversified approach to commodities investing.
eToro Partners with WisdomTree on Commodities Smart Portfolio
The brokerage said the WisdomTree-Comm Smart Portfolio will offer eToro users exposure to a broad range of commodities while dynamically adjusting to market conditions.
The partnership comes after a year of record-high prices for several commodities, including gold, which surged amid Federal Reserve rate cuts and geopolitical tensions, as well as cocoa and coffee, which were impacted by extreme weather events.
Meanwhile, long-term trends such as the green energy transition and artificial intelligence development have increased demand for metals like copper, silver, and platinum.
The portfolio is primarily composed (80%) of the WisdomTree Enhanced Commodities UCITS ETF, providing exposure to agriculture, energy, precious metals, and industrial metals.
The remaining 20% is allocated to four equally weighted exchange-traded products (ETPs), selected from a pool of 13 non-agricultural commodities based on momentum, roll yield, and low volatility. These allocations are rebalanced monthly.
“Commodities can provide diversification and resilience to an investment portfolio because, unlike stocks and bonds, they benefit from high inflation and interest rates,” said Gil Shapira, Chief Investment Officer at eToro.
Adrià Beso, Head of Digital Distribution at WisdomTree, added: “This dynamic model portfolio simplifies access to the commodities complex through a one-stop solution, making it easier for investors to build diversified portfolios.”
eToro’s Smart Portfolios have a minimum investment of $500.
