What are CopyFunds?
CopyFunds is eToro's new premium product offering that takes CopyTrading to the next level.
There are two types of CopyFund to choose from:
- Top Trader CopyFunds which comprise the best performing traders on eToro, according to a predefined strategy.
- Market CopyFunds which bundle together a select combination of CFD stocks, commodities or ETFs, according to a predefined theme.
- Partner CopyFunds which have been created by our partners - Tipranks, a stock analyst software company; WeSave, a French robo-advisor; and Meitav Dash, a multi-billion Dollar investment house.
This new, thematic approach to investing is designed to help traders diversify their portfolios, minimize long-term risk, and take advantage of current market opportunities. Each CopyFund is periodically re-balanced in order to get the most out of the thematic trading strategy upon which it is based.
It is important to note that each person or market under a CopyFund is counted as a single trade and that each trade will open for you with the same proportional amount, as a percentage of your allocated funds, just like copying another trader.
What is the minimum amount required to invest in a CopyFund?
CopyFunds operate like multiple traders, all working for you at the same time. As such, there are many underlying positions that are opened on your behalf. For that reason, the minimum amount needed to invest in CopyFunds is $5,000.
Why can't I add money to my CopyFund?
This is in order to prevent a situation in which additional funds sit unused in the CopyFund balance, almost like making a deposit to your account and not being able to open any positions. If you would like to have more money invested in the CopyFund of your choice, you can simply stop your current copy and restart with the full desired amount.
How can I remove funds?
It is not possible to remove a part of the investment. You would need to close the investment completely.
Can I close individual positions within the CopyFund?
It is not possible to close individual positions within the CopyFund. You would need to close the investment completely.
How can I realize my profits?
Profit/Loss is live and will be reflected in your equity as such. You can realize your profit by closing your investment. The funds will go into your available balance.
What factors do you take into account when re-balancing a CopyFund?
Over time, the value of individual ETFs in a diversified portfolio moves up and down, drifting away from their target weights. For example, over the long term, stocks generally rise faster than ETFs, so the stock portion of your portfolio will go up relative to the ETF portion. The re-balancing mechanism closes and opens positions periodically, to keep the asset allocation ratio, and maintain the CopyFund’s strategy.
When is my CopyFund re-balanced?
As the re-balancing period changes from one CopyFund to another, you may visit your CopyFund’s prospectus to know your CopyFund’s specific re-balancing frequency.
Are fees charged to close a copyfund?
As opposed to a traditional investment house, there are no management fees associated with investing in or closing CopyFunds. However, the underlying financial transactions initiated by a CopyFund incur eToro’s spreads. Visit this page to view our pricing.
For more information about CopyFunds, click here.