<p>eToro, an
Israel-based social trading network, has announced the launch of a new social sentiment
portfolio dubbed SocialSentiment. The latest addition to the eToro’s product
lineup offers retail investors exposure to the US-listed companies known for
their solid ESG efforts. </p><p>Sentifi and eToro Join
Ranks</p><p>According
to Monday’s press release, the newest social sentiment portfolio was created in
collaboration with Sentifi, an AI-driven alternative data engine that analyzes
more than 2 million news and 500 million tweets per day to gather up-to-date
trading signals. </p><p>Sentifi
analyzes over 50,000 instruments, including currencies, commodities, indices,
stocks, and funds. In creating portfolios, such as SocialSentiment, it examines
market sentiments associated with a given asset by assigning it a ‘sentScore’.
In the case of SocialSentiment, this has enabled the creation of a portfolio
that tracks companies with positive social chatter.</p><p>”eToro
pioneered social investing and showed how the power of social can empower
people around the world to build their wealth and take control of their
finances. With this portfolio, we aim to offer retail investors exposure to
stocks that are being discussed in a positive light on social and digital
channels, adding an extra layer of insights. We are looking forward to
partnering with the Sentifi team, and working together to harness the power of
social networks,” Dani Brinker, the Head of Investment Portfolios at eToro</p><p>The monthly-rebalanced
portfolio includes the top 10 S&P 500 stocks that meet social sentiment and
ESG criteria, ranked by their lowest risk over attention-weighted sentiment
score. With a minimum investment of USD$500, investors can easily monitor the performance
of their portfolio using eToro’s advanced tools and charts while staying
informed on sector developments through its social feed. However, the portfolio
is currently unavailable for US investors.</p><p>Companies
currently incorporated in the portfolio include Verisign, Teradyne, Dollar
Tree, Alistate and F5 Networks, among others.</p><p>”Social
networks, news, blogs and forums are a valuable source of changing risk for
asset classes and offer dynamic views on ESG performance appreciation and
degradation for companies globally – essential for constructing portfolios that
outperform a benchmark. Sentifi is delighted to partner with eToro to offer
eToro’s Social Sentiment portfolio,” the Marina Goche, CEO at Sentifi,
added.</p><p>In the late-January,
eToro presented another new smart portfolio, <a href=”https://www.financemagnates.com/fintech/etoro-introduces-ai-powered-porfolio-that-targets-high-growth-us-firms/” target=”_blank” rel=”follow”>InvestorAI-US</a>, that uses
artificial intelligence to provide retail investors’ exposure to the stocks of
12 high-growth United States companies.</p><p>eToro’s Clients Confident
about Their Portfolios</p><p>According
to <a href=”https://www.financemagnates.com/trading-room/retail-investors-confident-about-portfolio-despite-2022-bear-market/” target=”_blank” rel=”follow”>the most recent eToro survey</a> conducted a month ago, a significant portion of
retail investors (69%) feel confident about their investment portfolios. This
newfound confidence may be attributed to a decreased concern regarding the perceived
threat of inflation among investors and occurs despite the extended bear market
that plagued financial markets in 2022.</p><blockquote class=”twitter-tweet”><p lang=”en” dir=”ltr”>📣 Our latest quarterly <a href=”https://twitter.com/hashtag/RetailInvestorBeat?src=hash&ref_src=twsrc%5Etfw”>#RetailInvestorBeat</a> is out and there IS light at the end of the tunnel. ⬆️ Confidence is up💷 People are investing more 📊 Younger investors are feeling positive about their portfoliosGet the full scoop 👇</p>— eToro (@eToro) <a href=”https://twitter.com/eToro/status/1615643825350840321?ref_src=twsrc%5Etfw”>January 18, 2023</a></blockquote><p>The report
indicates that a higher proportion of young retail investors (76%) between 18-34
display more risk tolerance, with a positive or indifferent attitude toward the
2022 downtrend. Conversely, only 60% of older investors aged 55 and above share
this sentiment.</p><p>”The
fact that two thirds of retail investors feel indifferent, or even more
positive, after the worst year for markets in a generation might seem odd. But
the majority of this cohort think in years and decades. For those with longer
time horizons, the back end of 2022 has offered a chance to buy companies at
lower valuations, improving the outlook for long term returns,” Ben
Laidler, the Global Markets Strategist at eToro, commented.</p><p>eToro Opens Up to
Brazilians and New Yorkers</p><p>In the two updates
published in February, eToro revealed the expansion of its services in the
Americas. <a href=”https://www.financemagnates.com/forex/etoro-gets-bitlicense-and-money-transmitter-licenses-from-new-york/” target=”_blank” rel=”follow”>The social trading network has been granted a virtual currency
license</a>, also known as BitLicense, by the New York State Department of
Financial Services. The license was obtained through eToro NY LLC, the trading
network’s subsidiary in the United States.</p><p>According
to a statement on its website, eToro informed that the newly acquired licenses
would allow it to provide New Yorkers with trading features for stocks, crypto,
and options. The company also expressed its intention to expand its virtual
portfolio and integrated social investing tools to residents of New York once
eToro NY LLC becomes operational.</p><p>In the meantime,
the company <a href=”https://www.financemagnates.com/forex/etoro-opens-up-all-assets-to-brazilian-users-exempts-forex-cfds/” target=”_blank” rel=”follow”>has broadened the range of assets</a> available for investment by its
users in Brazil. Previously, traders who were onboarded on or after 28th
February last year in the Latin American country were only able to trade
cryptocurrency positions based on the Brazilian real.</p><p>Thanks to
the newest update, Brazilian customers are now eligible to trade exchange-traded
funds, stocks and contracts for difference, with the exemption of <a href=”https://www.financemagnates.com/terms/f/forex/” class=”terms__main-term” id=”6faa6714-7f7b-4d23-b1c5-c0d40807d613″ target=”_blank”>forex</a>
instruments.</p>
This article was written by Damian Chmiel at www.financemagnates.com.
