Trading and investing platform eToro is joining forces with AI investment firm BridgeWise to launch ‘MidCapDiverse’, its first smart portfolio designed to capture long-term growth opportunities in US mid-cap stocks.
The new eToro portfolio features 30 AI-selected companies with up to $50billion in market cap, identified for strong fundamentals and sector diversity. Constructed using BridgeWise’s proprietary stock analysis model, MidCapDiverse is aimed at the UAE and regional investors.
The model analyses publicly available data, then scores and ranks companies based on a comprehensive set of fundamental metrics. Ultimately, it aims to identify top-performing mid-cap companies with strong fundamentals and diverse sector representation.
“We’re excited to leverage BridgeWise’s AI-driven fundamental analysis to introduce this new portfolio,” explained Gil Shapira, chief investment officer at eToro. “Mid-cap stocks are gaining interest at the moment as investors seek to diversify away from tech mega-caps. With interest rates coming down, mid-caps are set to benefit from lower borrowing costs, enhancing their potential for innovation and market share expansion.
“Focusing on the mid-cap segment, the selected stocks are large enough to demonstrate proven business models, yet small enough to have room to grow. The US-listed stocks within this portfolio are also less exposed to global risks as the majority of their revenue is generated domestically. As mid-caps are often under-researched by analysts, this portfolio gives investors a simple and automated way to potentially uncover some hidden gems.”
Providing data clarity to investors
eToro’s range of Smart Portfolios also offers long-term exposure to various market themes. They provide long-term investment solutions that offer diversified exposure. Initial investment starts from $500, while any investor can access tools and charts to track the portfolio’s performance. At the same time, eToro says its social feed will keep investors up-to-date on developments in the sector.
Ayush Khatri, general manager, MENAT at BridgeWise, also commented: “This collaboration with eToro reflects the accelerating demand for institutional-grade intelligence in segments often overlooked by traditional research.
“By integrating BridgeWise’s AI-driven analytics into the MidCapDiverse portfolio, we’re giving UAE and regional investors the kind of data clarity and precision they need to spot new opportunities, along with the opportunity to improve liquidity in the overall financial markets.”
