eToro Launches UAE-Economy Smart Portfolio
Online broker eToro has launched a new Smart Portfolio named UAE-Economy. The portfolio gives retail investors access to a diversified group of companies listed on the Abu Dhabi Securities Exchange (ADX) and Dubai Financial Market (DFM). The launch comes when national initiatives like UAE Vision 2031 and Abu Dhabi Vision 2030 are pacing up economic growth and expanding capital markets in the country.
Portfolio Structure and Sectors
The UAE-Economy portfolio invests in 20 leading UAE-listed companies. These companies are spread across sectors, including banking, real estate, energy, utilities, telecommunications, and logistics. The portfolio offers diversified sector exposure and has low correlation to Western markets.
Stock Selection and Rebalancing
Each stock in the portfolio is selected based on market capitalisation, liquidity, key financial ratios, and analyst consensus ratings. The portfolio is rebalanced yearly or on demand, depending on market conditions.
Dividend Yield Advantage
The portfolio delivers an average dividend yield of 3.75%. Some stocks even offer yields as high as 7%. In comparison, the dividend yield of the S&P 500 currently is 1.15%.
Investment Access and Minimum Amount
The UAE-Economy portfolio is part of eToro’s Smart Portfolios range. It focuses on long-term market themes. Investors can start with a minimum investment of USD 500. They can track performance using eToro’s tools, charts, and social feed.
About eToro
eToro is a social trading and multi-asset brokerage platform. It allows users to trade and invest in varied financial instruments, including stocks, ETFs, cryptocurrencies, and CFDs. The platform has unique social trading features like CopyTrader. It lets users replicate the trades of experienced investors. eToro crossed over 35 million users by 2023. It serves in more than 100 countries. Recently, eToro rolled out a new feature that lets users choose between regular and 24/5 trading sessions.
Summing Up
The UAE-Economy portfolio gives investors structured access to the country’s growing capital markets. It targets long-term growth with strong dividend potential and sector diversification. The low entry level also makes it accessible for retail investors.
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