eToro and WisdomTree teamed up to introduce a new portfolio that aims to simplify access to a diversified commodity basket. This ETF includes a mix of agriculture, energy, precious metals, and industrial metals, creating a well-balanced allocation.
Dubbed WisdomTree-Comm Smart Portfolio, the new offering reportedly gives eToro users access to 24 commodities through the WisdomTree Enhanced Commodities UCITS ETF, comprising 80% of the portfolio.
According to the company, the remaining 20% of the portfolio is rebalanced monthly with four single-commodity exchange-traded products (ETPs). These are reportedly selected from a pool of 13 commodities based on momentum, roll yield, and low volatility to ensure the portfolio adapts to market conditions while minimizing risk.
Commenting about the new offering, Gil Shapira, the Chief Investment Officer at eToro, said: “Commodities can provide diversification and resilience to an investment portfolio, because unlike stocks and bonds, they benefit from high inflation and interest rates.”
“In partnership with WisdomTree, Europe’s largest commodity ETP provider, our goal is to give users a simple, diversified, and less volatile way to invest in a broad range of commodities over the long term.”
Additionally, the report by the fintech giant noted that the recent trends highlights the growing importance of commodities. In 2024, gold reached record highs driven by Federal Reserve rate cuts and geopolitical tensions. Similarly, climate change has reportedly boosted prices for cocoa and coffee.
The Commodities Market
Meanwhile, metals such as copper and platinum are experiencing surging demand due to their critical role in green energy initiatives and artificial intelligence infrastructure.
With a starting investment of $500, users gain access to tools and charts for tracking portfolio performance. Additionally, eToro’s social feed provides updates on commodity market developments, ensuring investors stay informed.
“As the European leader in commodity exchange-traded funds (ETFs) and exchange-traded products (ETPs), investors have been relying on WisdomTree expertise and products to access this asset class since 2004,” Adrià Beso, the Head of Digital Distribution at WisdomTree added.
“Commodities can play a variety of roles for investors, such as serving as a portfolio diversifier, an inflation hedge, and a hedge against geopolitical risks. This dynamic model portfolio simplifies access to the commodities complex through a one-stop solution.”
