Online broker eToro introduces ValueGurus, a portfolio providing access to the ‘best buys’ according to leading value investors.
As an alternative solution to the current proliferation of content on what is a ‘buy’ on social media, eToro created a portfolio based on the investment choices of real-world finance leaders and business influencers. eToro analysed their most common buys by looking at the 13F filings of some of the leading mutual and hedge funds including Baupost Group and ValueAct Capital, and captured their top holdings in ValueGurus.
“We are seeing an increasing amount of financial content on Twitter and other social channels on what is a ‘buy’. In an effort to help retail investors make more informed investment decisions, we wanted to introduce them to a credible, publicly available tool that can be taken into consideration when making investment decisions,” explained Dani Brinker, Head of Investment Portfolios at eToro.
“13F filings are a great financial tool as they provide additional transparency on the portfolio composition and the stocks chosen by the leading mutual and hedge funds. To help our users invest like them, we used 13F data to create a fully managed portfolio that provides them exposure to what the best in finance are buying.”
The 10 stocks making up the portfolio at its inception boast an average weighted market cap of over USD$415 billion and include Google, Mastercard, and Fiserv. The portfolio will be rebalanced every quarter after 13F filings are updated, it follows an automated and back tested methodology and is not discretionary in picking assets.
ValueGurus joins eToro’s existing offering of portfolios that mirror the investment strategies of influential financial personalities Warren Buffett, Edgar Wachenheim, and Carl Ichan.
eToro’s Smart Portfolios offer investors exposure to various market themes. Bundling together several assets under a defined methodology, and employing a passive investment approach, eToro’s Smart Portfolios are long-term investment solutions that offer diversified exposure with no management fees.
Initial investment starts from USD$500 and investors can access tools and charts to track the portfolio’s performance, while eToro’s social feed will keep them up-to-date on developments in the sector. For now, this portfolio is not available to US users.
