In February, we introduced you to the concept of Copyfunds from social trading broker, eToro. We were pretty impressed with its simplicity and the idea of bundling a group of CFDs together to mitigate some of the risk that investors are exposed to with a single Contract for Difference.
We’ll be introducing you to some of the more popular and successful CopyFunds over the next few weeks. To kick things off, we’ve spoken to eToro about their Big Tech Copy Fund.
The Big Tech CopyFund
Managed by eToro Europe Ltd, the Big Tech CopyFund is run by Head of Portfolio Management, Jason Hadjigeorgiou. The fund includes some of the biggest and brightest names from the global technology sector including Apple, Google and Microsoft. There’s a full list below.
eToro explained their criteria for including stocks – “An investment committee headed up by Jason Hadjigeorgiou developed the Big Tech CopyFund using selective leading companies from the technology sector. Stocks required a Market Capitalisation of over $10billion in order to qualify for entry to the CopyFund.”
Now, the Big Tech CopyFund isn’t completely left alone to fend for itself. There is an element of active management within the fund to ensure that performance is a true reflection of its component stocks. Each stock has a weighting within the CopyFund that reflects its Market Cap and over time, Jason Hadjigeorgiou will put forward his recommendations to the Investment Committee for re-balancing, adding new stocks or removing existing ones.
There are no ongoing fees or management charges associated with Big Tech CopyFund. However, the underlying transactions will incur fees through eToro’s spreads – their commission for opening and closing positions for each component stock.
Performance has been excellent over the last 28 months, with growth of more than 40% over the period. Take a look at the chart below.
Commenting on the future of Technology Stocks, eToro are unsurprisingly bullish – “As a technology company ourselves, we believe that the sector is growing rapidly and will keep on growing. Allocated companies within the portfolio have shown steady growth and are always in constant search for innovative new ideas.”
Big Tech CopyFund stocks
|Apple [AAPL]||Alphabet (Google) [GOOG]||Microsoft [MSFT]||Amazon [AMZN]|
|Facebook [FB]||Alibaba [BABA]||Intel [INTC]||IBM [IBM]|
|Cisco [CSCO]||Netflix [NFLX]||eBay [EBAY]||Hewlett Packard [HPQ]|
You can register for an eToro free virtual account to test drive the platform and check out the range of CopyFunds that are available for free.