- eToro launches seven new Alpha Portfolios built using machine learning and exclusive insights from retail trading activity
- The Alpha Portfolios bring sophisticated quant strategies to retail investors
28 May 2025 – Trading and investing platform eToro announced today it has launched seven ‘Alpha Portfolios’, a family of innovative AI-powered investment strategies built using advanced analysis of eToro’s proprietary retail trading data.
“We’re excited to give our users access to exclusive quant-driven strategies typically used by hedge funds and institutional investors with the new Alpha Portfolios. These kinds of strategies have long been out of reach for retail investors, as they normally have high entry barriers, costly management fees, restrictive lock-up periods and less transparency in terms of asset allocation,” said Shay Heffetz, Director of Quantitative Investment Strategies at eToro. “But what sets these portfolios apart is how we’ve combined AI with one of the largest retail trading datasets in the world – an edge that few others have. We’re in a strong position to apply AI in a way that delivers real, actionable value to retail investors .”
As a global trading and investing platform with 40 million registered users, eToro is able to aggregate anonymised retail trading data across diverse geographies and stock markets – resources that are not available to traditional fund managers. The Alpha Portfolios use advanced machine learning models to identify patterns and behavioural inefficiencies in eToro’s vast data pool, in order to systematically adapt their strategies to generate ‘alpha’, meaning better returns than the market.
Eligible users can invest in seven Alpha Portfolios in total, each employing a unique strategy designed to perform well in different market environments:
Directional strategies:
- Momentum L-S is a long/short US equity strategy that dynamically selects high-momentum stocks for long positions while shorting underperformers.
- OutSmartNSDQ is a technology-focused long/short strategy that aims to outperform the Nasdaq while providing downside protection.
- NasdaqAI-Inverse is a strategy designed to protect investors from market downturns by shorting 50 stocks in the Nasdaq 100 that are likely to decline in value.
Market-neutral strategies:
- Sector Neutral is a long/short strategy that seeks low correlation to overall market trends, with the goal of delivering low volatility and consistent returns. There is also a 2x leveraged version, SectorNeutral-X2.
- Sector Gurus is a long/short strategy that targets volatile yet high-performing stocks within the S&P 500. There is also a 2x leveraged version, SectorGurus-X2.
Each portfolio is rebalanced monthly, using the latest data and updated AI signals to ensure they remain aligned with market conditions and the portfolio’s specific goals. Initial investments start from US $10,000. There are no management fees, performance fees, or lock-up periods.
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About eToro
eToro is the trading and investing platform that empowers you to invest, share and learn. We were founded in 2007 with the vision of a world where everyone can trade and invest in a simple and transparent way. Today we have 40 million registered users from 75 countries. We believe there is power in shared knowledge and that we can become more successful by investing together. So we’ve created a collaborative investment community designed to provide you with the tools you need to grow your knowledge and wealth. On eToro, you can hold a range of traditional and innovative assets and choose how you invest: trade directly, invest in a portfolio, or copy other investors. You can visit our media centre here for our latest news.
Disclaimers:
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
eToro is authorised and regulated by the Financial Conduct Authority in the UK, in Cyprus by the Cyprus Securities and Exchange Commission, by the Australian Securities and Investments Commission in Australia, licensed by the Financial Services Authority in the Seychelles and by the Abu Dhabi Global Market (“ADGM”)’s Financial Services Regulatory Authority (“FSRA”) in the UAE.
This communication is for information and education purposes only and should not be taken as investment advice, a personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments. This material has been prepared without taking into account any particular recipient’s investment objectives or financial situation, and has not been prepared in accordance with the legal and regulatory requirements to promote independent research. Any references to past or future performance of a financial instrument, index or a packaged investment product are not, and should not be taken as, a reliable indicator of future results. eToro makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication.
UK
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 61% 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.
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Rest of Europe
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Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
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France
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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 61% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
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Past performance is not an indication of future results. Other fees apply.
UAE
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Regulation and License numbers
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eToro (UK) Ltd, is authorised and regulated by the Financial Conduct Authority (“FCA”). Firm Reference Number: 583263. Registered in England under Company No. 07973792
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eToro (Europe) Ltd, is authorised and regulated by the Cyprus Securities and Exchange Commission (CySEC) under licence number 109/10. Registered in Cyprus under Company No. HE 200585.
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