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We’re already done with the first half of 2020 and even if we’re still halfway before the year ends, there’s no question it has been one of the most intense year for the global financial markets.
And one thing’s for sure:
The still on-going Covid-19 pandemic has caused an unprecedented reckoning and a huge wave of uncertainty in the national economy and in many industries.
But there’s a silver lining…
Some sectors are actually showing growth and benefiting from the coronavirus scare as their products and services have become highly in demand and even experienced unprecented growth over the past few months.
So what are these specific sectors to look out for which could open significant investment opportunities?
We’ve listed them below and the CopyPortfolios that you can invest on in relation to these promising industries.
But before we begin…
Here’s a short 101 about eToro CopyPortfolios:
CopyPortfolio is eToro‘s premium product offering thematic investments in different market sectors.
This allows you to automatically copy multiple markets based on a predetermined investment strategy.
So how can you actually use this?
With this thematic investing approach, you’ll be able to take advantage of current market opportunities while minimizing long-term risks and even diversifying your portfolio.
As the name suggests, this portfolio focuses on extreme market volatility.
This aggressive asset tends to gain when major markets are bearish and the global economy is facing unprecedented levels of uncertainty.
The allocation of the portfolio has short positions on ETFs of the world’s biggest economies, on safe haven instruments that are prone to experience trader interest when markets are in panic mode and on the $VXX instrument or what is more popularly known as the “fear index”.
Here’s how it goes:
Markets are more likely to become highly volatile during this unprecedented health crisis and most traders turn into this unique thematic portfolio.
As compared to other CopyPortfolios, PanicMode goes on short-selling and applying other hedging strategies should the markets experience extreme volatility in order to avoid losses.
But take note:
We highly recommend getting more familiarized with how this unique portfolio works and practice caution regardless if you’re going to place your investments for a short-term or a long term.
The current crisis that the world is facing right now is due to a global pandemic and with the race to find a coronavirus vaccine gathering pace, it has placed the biotechnology industry into sharp focus.
One technology that is being considered to treat the deadly virus is clustered regularly interspaced short palindromic repeats or CRISPR.
Via CRISPR, the goal is to inactivate or activate different genes in our cells to determine the anchors that the virus latch onto they can formulate drugs that have the potential to block it.
And if you want to gain exposure to companies that are involved in kind of biotechnology then you might want to explore eToro’s CRISPR-Tech CopyPortfolio.
It fairly allocates weight for every stock so you’ll have a balanced and managed portfolio.
Some industries are thriving and that includes e-commerce.
Internet access has become a basic necessity and this has spawned the era of the educated consumer.
Now, online shopping is widely accepted as a way of purchasing products and services and this has benefited online retailers which are part of already a multi-trillion dollar market.
And since governments across the globe are imposing lockdowns and strict directives for the public to stay at home, this industry has the more potential to thrive as businesses ride the wave of digital transformation.
eToro offers the ShoppingCart portfolio which a fully allocated investment strategy if you’re looking to invest on a broad range of e-commerce stocks that are of companies that are active in the online retail and marketplace space.
Speaking of staying at home…
Outdoor activities are not recommended during the pandemic and since people easily get bored during quarantine, playing video games has been a welcome distraction.
The World Health Organization even recommended this popular indoor activity as part of its attempts to curb the spread the novel coronavirus.
That being said…
Video gaming companies have the potential to gain from this situation and if you want to invest on this promising market then you might want to explore eToro’s InTheGame portfolio.
It consists of some of the worlds biggest companies in the gaming industry such as:
- Sony (SNE)
- Electronic Arts, Inc. (EA)
- Hasbro Inc (HAS)
- Nintendo Co Ltd (NTDOY)
- NVIDIA Corporation (NVDA)
Do take note that:
Anytime, there could be changes on the weights of the assets and this will be the sole discretion of the portfolio manager.
You’ve probably heard of cryptocurrencies like Bitcoin, Ethereum and Ripple and these digital assets are slowly becoming mainstream.
And it’s not surprising given that the cryptocurrency boom was just a few years ago and it’s common to see traders having this new asset class included in their investment portfolios.
Now that physical distancing is highly encouraged and everyone is switching to cashless payments, the crypto market is once again getting the attention as the world continues to adapt to this new evolving sector.
So has the ship sailed? Is it too late to invest in crypto?
And if you still want to get on board then you might want to consider eToro’s Crypto CopyPortfolio which will give you exposure to most crypto coins that are available on their online platform.
The diversified portfolio which was developed and managed by eToro’s investment committee has an allocation that is based on market cap and rebalancing is either on an annual or ad-hoc basis if a cryptocurrency is added or delisted.
So what does the future hold?
With no vaccine expected to reach the public anytime soon, the world generally remains on quarantine but businesses are slowly resuming operations and adapting to the new normal.
But as we head into the second half of this year, some markets are emerging and this opens significant trading opportunities.
And what would be a better way than to seize these investment opportunities with eToro’s thematic ready-made portfolios that takes copy trading to the next level.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% 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.
Past performance is not an indication of future results.
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.