eToro has announced a new partnership with WisdomTree to launch a dynamic portfolio offering eToro users diversified exposure to commodities. The new initiative aims to provide an adaptive investment solution, adjusting to shifting market conditions.

The launch comes as eToro moves forward with its plans for an IPO in the US equity markets. Both companies highlight that 2024 has seen several commodities reach record-high prices, driven by a combination of geopolitical tensions, extreme weather, and long-term macro trends. Gold, for instance, has surged amid the Federal Reserve’s rate cuts and ongoing geopolitical conflicts, while agricultural products like cocoa and coffee have been impacted by climate change. Additionally, the growing demand for metals such as copper, silver, and platinum, fueled by the green energy transition and advancements in artificial intelligence, is shaping the commodities landscape.

eToro & WisdomTree Partnership: Smart Portfolio for Commodities

The WisdomTree-Comm Smart Portfolio will invest in 24 commodities via the WisdomTree Enhanced Commodities UCITS ETF, which will make up 80% of the portfolio. The ETF provides exposure to a diverse mix of agriculture, energy, precious metals, and industrial metals. The remaining 20% will consist of four single-commodity ETPs, rebalanced monthly. These will be from 13 commodities based on momentum, roll yield, and low volatility, ensuring a balanced and stable approach to investing.

Gil Shapira, Chief Investment Officer at eToro, emphasized the benefits of commodities in diversifying investment portfolios, particularly in times of high inflation and interest rates. Adrià Beso, Head of Digital Distribution at WisdomTree, added that the new portfolio simplifies access to commodities and helps investors navigate geopolitical risks, inflation, and more.

The portfolio is currently unavailable to eToro users in the US.

As the global market continues to evolve with geopolitical tensions, climate change, and technological advancements, the WisdomTree-Comm Smart Portfolio presents an innovative opportunity for investors to tap into the potential of commodities, balancing risk while capitalizing on market trends.

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