eToro, the social investing network, announced today the launch of SocialSentiment, a portfolio offering exposure to US companies with solid ESG performance and high levels of positive social chatter developed in partnership with Sentifi, an award-winning alternative data provider.
Dani Brinker, Head of Investment Portfolios at eToro said: “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.”
Ranked in the AIFinTech100 list for its pioneering Artificial Intelligence (AI) technology, Sentifi analyses over 50,000 stocks, currencies, commodities, indices, passive and active funds. To shape the portfolio, Sentifi pairs these metrics with social sentiment (sentScore) and ESG scores. Sentifi determines the sentiment towards an asset by allocating a sentScore, established by analysing over 500 millions tweets, 2 million news articles, forums and blogs.The result is a selection of US stocks with high ESG credentials and positive social chatter.
Marina Goche, CEO at Sentifi said: “When it comes to investing, information is power and the more knowledge retail investors have, the more informed decisions they can make. The events over the past several years relating to the meme-stock rallies are evidence of how the herd can change direction, and where these changes happen, which is largely in social networks and forums. Social networks, news, blogs and forums are also 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.”
Rebalanced monthly, the allocation consists of the top 10 S&P 500 stocks that meet the ESG and social sentiment criteria, ranked by their lowest risk over attention weighted sentiment score (AWSS). The list of stocks selected at inception can be found here.
eToro’s range of 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.