eToro's AI-Revolution Portfolio: Diversified Exposure to the AI Megatrend

Key Takeaways

• eToro's AI-Revolution smart portfolio offers diversified exposure to companies developing and utilizing artificial intelligence technologies
• The portfolio includes leading AI infrastructure companies like Nvidia, Microsoft, IBM as well as companies leveraging AI to improve their businesses like Salesforce and Honeywell
• Investing in a diversified AI portfolio can be a smart way to gain exposure to the AI megatrend while managing risk

What is the AI-Revolution Smart Portfolio?

eToro's AI-Revolution is an innovative investment product that provides diversified exposure to the exciting world of artificial intelligence. This "smart portfolio" contains a curated basket of stocks of companies that are either developing core AI technologies or utilizing AI to revolutionize their businesses.

By investing in AI-Revolution, you can gain access to the upside potential of the AI boom without having to research and pick individual stocks yourself. eToro's experienced investment team has done the hard work of identifying the key players and allocating the portfolio holdings for optimal risk-adjusted returns.

Some of the key benefits and features of AI-Revolution include:

• Exposure to a mega-trend that could transform every industry
• Diversification across AI infrastructure and AI-powered application companies
• Includes blue-chip tech leaders as well as innovative AI pure-plays
• Automatically rebalanced periodically to optimize allocations

Inside the AI-Revolution Portfolio

What exactly will you be invested in if you add AI-Revolution to your eToro portfolio? Let's take a look under the hood.

The stocks in the portfolio are divided into two main categories:

1. Companies focused on developing the core infrastructure and technologies underpinning AI, such as:
   • Software
   • Cloud computing
   • Semiconductors
   • Computer hardware
2. Companies leveraging AI technologies to transform and enhance their products and services, across sectors like:
   • Healthcare
   • Education
   • Finance
   • Manufacturing
   • Transportation
   • Marketing
   • Law

This allows the portfolio to capture the growth of the AI industry from multiple angles - both the "picks and shovels" providers building the foundation, and the companies using AI tools to gain a competitive edge.

Some of the notable holdings in the AI infrastructure category include:

And here are some of the key holdings leveraging AI in their businesses:

By covering a broad range of companies and industries, AI-Revolution provides diversified exposure to the long-term growth potential of artificial intelligence.

Why Invest in AI?

Artificial intelligence has the potential to be one of the most transformative technologies of our time. The rapid advancements in areas like machine learning, computer vision, and natural language processing are enabling machines to match or even surpass human capabilities across a wide range of cognitive tasks.

As AI continues to evolve, it will likely have a profound impact on virtually every industry. Here are some of the key reasons to consider investing in AI:

• Massive addressable market - AI could add $15.7 trillion to the global economy by 2030
• Rapid growth - IDC predicts global AI spending will more than double from 2020 to 2024
• Transforming businesses - AI can drive cost savings, efficiency gains, and new revenue streams
• Improving our lives - From healthcare breakthroughs to self-driving cars, AI will change how we live and work

Given these powerful tailwinds, many experts believe AI could be the biggest investment opportunity of the next decade. By gaining exposure to this mega-trend today, investors may be positioning themselves to capture tremendous growth in the years ahead.

The Importance of Diversification

While the long-term potential of AI is extremely compelling, it's important for investors to be prudent and manage risk appropriately. Many individual AI stocks have seen their valuations soar to dizzying heights, raising concerns about a potential bubble forming.

The AI industry is also still at a relatively early stage, and not every company working on AI today will be a winner in the long run. There could be significant volatility along the way, as we saw with many tech stocks after the dot-com boom 20 years ago.

This is why diversification is so critical when investing in a megatrend like AI. By spreading bets across a basket of stocks, the impact of any single company's performance is reduced.

Investors can achieve diversification by investing in an AI-focused exchange-traded fund (ETF) or by building their own portfolio of AI stocks. However, these approaches require more time, effort and expertise to implement properly.

The AI-Revolution portfolio offers a turnkey solution for investors who want diversified exposure to AI without having to do all the research and portfolio construction themselves. With a single investment, you can access a professionally-curated, regularly-rebalanced basket of leading AI stocks.

Conclusion

The AI revolution is one of the most exciting investment opportunities in the financial markets today. As artificial intelligence transforms more and more industries, the companies leading the charge could deliver spectacular returns in the coming years.

However, given the early-stage nature of the AI industry and the hype surrounding it, a diversified approach is prudent for investors looking to gain exposure to this mega-trend. Picking individual stocks is challenging, with the risk of betting on the wrong horse.

This is where eToro's AI-Revolution portfolio really shines. With broad exposure to the AI ecosystem, automatic rebalancing, and no management fees, it's a compelling way for investors to play the AI boom for the long-term.

Whether you're a believer in the world-changing potential of artificial intelligence, or simply looking to invest in a powerful theme that could drive market returns, AI-Revolution is worth a serious look.