eToro, an Israel-based social trading network, has introduced a new smart portfolio that uses artificial intelligence (AI) to provide retail investors’ exposure to the stocks of 12 high-growth United States companies. The portfolio is tagged 'InvestorAI-US'.

In a statement released on Tuesday, eToro disclosed that it launched the portfolio in partnership with Bridgeweave, a UK-based startup that uses AI to create automated investment solutions for equities and cryptocurrency investors. The smart portfolio is powered by Bridgeweave’s proprietary technology.

eToro explained that the portfolio operates by offering investors access to the 12 stocks “with a robust capital structure, consistent year-over-year sales growth and exhibiting positive price momentum.” However, at the end of each month, the stocks basket is reshuffled to meet the aforementioned criteria.

“With AI taking care of the selection process, users will gain exposure to an array of less known, high growth companies that support a diversified investment strategy,” eToro noted.

Watch the recent FMLS22 session on trading in an era of social media.

Some of the companies whose stocks are included in the first portfolio include McDonald’s, Johnson & Johnson, Paycom Software, Monster Beverage Corp and Array Technologies, among others. These stocks are worth an average weighted market capitalization of US$18 billion, eToro said.

“Catering to investors who seek exposure to the US equity market, the performance of InvestorAI US Growth is measured against the S&P 500 and is designed to outperform over the medium to long term,” a description of the new portfolio reads on a page of eToro’s website.

However, eToro in the statement pointed out that the new portfolio is not yet available to its users in the United States.

Retail Investors Confident about Portfolio despite 2022 Bear Market

Meanwhile, the result of a recent survey conducted by eToro found that the majority of retail investors (69%) feel confident about their investment portfolio despite the downturns of the financial markets last year. In addition, most retail investors (67%) feel positive or are ambivalent about the year’s prolonged bear market. However, a good number of them (33%) say their eagerness to invest has been impacted to some extent.

Another recent survey by the Cyprus Securities and Exchange Commission (CySEC ) found that 31% of retail investors rely on ‘finflueners’. This is even as CySEC found that 22% of investors made their decisions based on promotions and endorsements.