Copyportfolios- Alternative Mutual Funds

8 minutes

Behind eToro Copyportfolios

eToro was Established in 2006 in Israel. They are a brokerage company that provides financial trading and copy trading. It has offices in Australia, Cyprus, the United Kingdom, and the United States with headquarters in Israel.

Checkout our full eToro in-depth review

What are Copyportfolios?

Copyportfolios are eToro investment funds through which you can invest in a group of assets. It bundles together a group of  thematic assets. These assets are strategically managed and supervised from time to time.

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67% of retail CFD accounts lose money

How Does Copyportfolio Works?

eToro Copyportfolios has a similar working mechanism as a normal investment portfolio. The managers manage the funds of investors and decide where to invest the money.

Types of Copyportfolios

Following are the three types of eToro Copyportfolios

1. eToro Market Copyportfolios

eToro market Copyportfolio based on the CFD stocks, commodities, ETFs, and indices. eToro’s experienced investment committee manages the algorithm that is the basis of the eToro market Copyportfolio. These complex algorithms manage the capitals and assets to invest the money of the investors strategically. It also replaces and rebalances the assets when needed.

To read about the market industries in the image below, go to this section, review of the eToro Market Copyportfolios

2. eToro Partner Copyportfolios

This is the new introduction in eToro Copyportfolios. In this Copyportfolios, the funds are not managed by eToro or its investment committee. The funds are managed by other fund managers partnered with the investors.

3. eToro Top Trader Copyportfolios

In this type of eToro Copyportfolios, the strategies from top eToro traders are copied and replicated. To ensure maximum results through this, the top traders are being supervised regularly via several algorithms. Those investors whose strategies are being copied are selected by analyzing few key factors through algorithms. Again, these algorithms are supervised by the eToro investor committee.

Copyportfolio Minimum Deposit

If you want to invest through eToro Copyportfolio, the minimum amount that you need to have in your account should be $1000.

Copyportfolios Fee

There is no management fee charged by eToro Copyportfolios.

etoro copyportfolios

What is a Mutual Fund?

Mutual funds are the type of investment in which a lot of different investors come together to combine their funds for investment in stocks, money market, bonds, and other assets. Money managers do the handling of mutual funds of the investors. It’s their job to invest the money of investors strategically and produce profits. In a mutual funds portfolio, the main goal is to meet the objectives of the investors stated at the start. This portfolio is very useful for small investors to have access to the bigger markets like bonds and money market instruments. The investment is equally or proportionally divided among the investors and each of them gets their share of profit or loss respectively.

How does Mutual Fund work?

Mutual funds can be an investment or a company in itself. It means that you can invest in mutual funds themselves. If you are investing in mutual funds, then it means investments mutual funds’ job is to make investment in other assets through which you will be generating your profit depending on the progress of mutual fund’ investment. Mutual funds are managed by the managers hired by the mutual fund company. The job of these managers is to handle the funds and make the investment that is good in terms of making a profit.

Following are the three-way through which investors can benefit from mutual funds:

  1. At the end of each year, the investors are given the cheque of their share in case of profit. Each shareholder is paid according to the investment he/she made. There is also an option of buying more shares through the profited money to earn more in the future.
  2. In the case of the increased price through securities sales, it means that funds have a capital gain. Each shareholder gets their share of this capital gain.
  3. If the manager of mutual funds doesn’t sell the holdings. You also have the option to sell your share in mutual funds to the market with profit. In this way, you will also be earning money.

Mutual Fund Fees

The mutual fund has a Shareholder fee and an annual operating fee. The annual operating fee is the fee charged by administration or management charged by the managers at the end of the year. This fee is usually 1-3% of the total funds managed. Whereas, the shareholder fee is the fee that is paid directly by the shareholder on buying or selling the funds in a mutual fund portfolio. Moreover, there are other charges and fee in case if any investor wants to sell his/her share before the scheduled time

Copyportfolios vs Mutual Funds

Following is the comparison of key features of Copyportfolio and Mutual Funds:

Copyportfolios Mutual Funds
Shares can be bought from eToro directly. Shares can be bought directly from funds.
The funds are managed and supervised time-to-time. Trades are only executed one time per day.
There are no advantages to tax. You can have liability on taxes.
Don’t have to pay any management fee. Expense Ratios fees

Compyportfolios comparison

What is an ETF?

ETF also known as Exchange Traded Fund. It is similar in many ways to stock. It deals with the stocks of several different companies at one time while tracking an underlying index. Instead of focusing on one stock of a particular company, in an ETF portfolio, you have the option to invest in several different stocks. It can be traded throughout the day like stocks.

How does an ETF Work?

In addition, ETF deals with different stocks of different companies. You can buy and sell ETF shares through online brokerage companies or directly through the exchange. It works in the same way as stocks but the difference is it deals with all types of stocks, commodities, and other assets.

ETF Fees

Moreover, ETF also charges a management fee, but this fee is lower as compared to mutual funds. But similar to mutual funds, investors don’t have to pay this fee directly. It gets deducted from investors’ funds automatically after the investments have been made.

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Copyportfolios vs ETFs

Let’s have a look at the comparison between Copyportfolios and ETFs:

Copyportfolios ETFs
You can access several different stocks of many companies. Access several different stocks of many companies.
A diversification method is used to avoid risks. Diversification method is used to avoid risks.
There are no advantages to tax. Potential tax efficiency
Don’t have to pay any management fee. Expense Ratios fees
The Copyportfolio has no associated fees. Also, keep in mind that there is a spread (cost between buying and selling) only when the copy portfolio is opened and during portfolio rebalancing. Fees are deducted from the assets in the fund before they are incorporated into the investors’ assets

What is Robo Advisor?

Robo Advisor is an online digital platform that uses algorithms to determine your financial situation and your investment goals through online surveys. It is not supervised by any human but through smart algorithms, it analyzes your data and then recommends the best investment strategies for you. In addition, it can also automatically invest your assets in suitable industries, based on the data it gathers from you through surveys. It has a low fee and it offers easy account setup, your investment goals, account management, and security features.

How does Robo Advisor work?

First of all, you need to sign up to create your account, and then through an online survey, you have to answer a few questions about your investment goals. You have to answer about your investment goals, how much risk you can afford, and your planned initial amount of investment. For example, based on your provided answers, Robo advisors provide asset allocation and suitable investment instruments with the help of algorithms. After you have invested your funds, it automatically manages your funds in a way that your funds remain closer to your investment goals. You may have to make small deposits to your account regularly so that Robo Advisor can invest more and more money to give you more efficient results.

Copyportfolios vs Robo Advisors

The following table describes the comparison of Copyportfolios and Robo Advisors:

Copyportfolios Robo Advisors
You don’t require any knowledge to start investing. You don’t require any knowledge to start investing.
It is time-effective. Time efficient
It uses simple strategies to invest your funds. Simple strategies to invest your funds.
You have several options to invest in. You don’t have many options to invest.
There is no management fee. A Robo Advisor fee is charged.


eToro Copyportfolios uses simple strategies to invest your money in suitable options making sure that the risk is managed accordingly. There are three different types of eToro Copyportfolios, each of which is quite different from others but the main goal for each of these types is to manage your assets under an expert’s supervision so you can achieve the best results. Moreover, there are other investment portfolios like Mutual Funds, Robo Advisor, and ETF. Mutual funds allow you to invest a collective amount of money gathered by several small investors. An ETF allows you to invest money in several different companies whereas Robo Advisors is a financial bot that gathers information from you and invests your assets according to your provided data. Apart from Copyportfolios, each of the other options have some management fee.

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