eToro and WisdomTree teamed up to introduce a new
portfolio that aims to simplify access to a diversified commodity basket. The offering 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.

Enhancing Access to Commodities

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 on 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 fintech giant’s report noted that recent trends highlight 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 and exchange-traded products, 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.”