eToro helps retail investors access global oil markets with new portfolio
Global multi-asset investment platform eToro has launched a new long oil portfolio to give retail investors access to the oil market.
This is in response to the unprecedented impact the Covid-19 pandemic and geopolitical tensions between OPEC members has had on oil prices and economies worldwide.
Traditionally, access to the global oil market has remained difficult for retail investors and largely the preserve of institutions or professional investors. This portfolio will provide retail investors with diversified exposure to 20 global companies across the oil sector, spanning its various stages of production. It also includes oil-related instruments such as two ETFs and an oil futures contract.
Yoni Assia, CEO and Co-founder of eToro, says: “The ongoing Covid-19 crisis has dramatically shifted oil demand and this is having a knock-on effect on oil-dependent industries and companies. Is this really a new world order or just a temporary situation caused by the unprecedented crisis the world is trying to navigate?
“In response to the strong demand we’ve seen from our client base asking for exposure to this part of the market in a regulated way, we have launched this portfolio. Many are viewing the low oil prices and impact this has had on some company’s share prices as a buying opportunity.
“We believe that investing should be made as easy as possible for people and markets should be opened up for everyone to invest in a simple and transparent way. Our portfolios enable people to invest in themes and ideas, ranging from 5G technology to gaming and now the oil sector.”
Clients can invest in the OilWorldWide portfolio from as little as USD2,000 USD. Some 85 per cent of the portfolio’s allocation covers 20 of the largest oil companies in the world by market cap. A total of 15 per cent of the portfolio is allocated to oil ETFs such as the Energy Select Sector SPDR and SPDR S&P Oil and Gas Exploration and Production as well as the oil futures contract available on eToro.
eToro’s growing list of portfolios have been designed to make thematic investing easy for retail clients, enabling them to gain exposure to developments in areas such as renewable energy, big tech, drone and 5G technology.