eToro Renewable Energy Smart Portfolio 

Portfolio Overview

Objective and Strategy

The RenewableEnergy Smart Portfolio invests in shares of global leaders in the renewable energy industry, spanning solar, wind, hydrogen, and advanced technologies for power generation and distribution. The portfolio is constructed from stocks within eToro’s asset universe that meet criteria such as market capitalization, share liquidity, financial ratios, and analysts’ consensus ratings.

• Minimum Investment: $500

• Rebalancing Frequency: Yearly (or at eToro’s discretion)

Key Details

• Type: Smart Portfolio

• Copiers: 5,121

• Assets Under Copy: $5M+

• Risk Score: 6 (on eToro’s scale)

• Annualized Return (5 Years): +6.11%

• Track Record: 6.6 years

The portfolio’s goal is to capture gains from the ongoing transition toward cleaner, more efficient energy sources and supporting infrastructure. Even prominent fossil fuel companies are diversifying into renewables, illustrating how central clean energy has become to the global economic landscape.

Performance Highlights

• November 2024: +1.52%

• Year to Date: -8.5%

• 1 Year: +0.4%

• 5 Years: +6.11% (Annualized Return: +2.01%)

While there has been some volatility, the long-term trajectory reflects the portfolio’s aim to capitalize on the increasing adoption of renewable energy technologies. Notable dips can occur as the sector responds to policy shifts, supply chain challenges, and changing market sentiment.

Worst Historical Drawdowns

The portfolio has experienced periods of drawdown consistent with broader market fluctuations and sector-specific headwinds. Below are the most significant drawdowns:

1. -49.63% starting November 2021 (ongoing for 37 months)

2. -24.72% from January 2020 to July 2020

3. -12.35% from February 2021 to October 2021

4. -9.45% from September 2018 to April 2019

5. -5.64% from May 2019 to September 2019

These drawdowns underscore the potential volatility in the renewable energy sector. However, they also present potential buying opportunities for investors who believe in the sector’s long-term growth.

Diversification and Composition

Sector Breakdown:

• Utilities (45.96%) – Companies providing electricity, often from renewable sources, directly to consumers and businesses.

• Producer Manufacturing (25.75%) – Firms involved in manufacturing key components for renewable infrastructure, such as wind turbines and solar panels.

• Electronic Technology (21.76%) – Technology and equipment providers enabling grid modernization, battery solutions, and other innovations.

• Process Industries (5.47%) – Companies engaged in industrial processes that support the clean energy value chain.

• Cash (0.71%) – Maintained possibly for liquidity or tactical allocation.

Exchange Breakdown:

• NYSE (28.88%) and Nasdaq (28.42%) dominate the portfolio, signaling a significant presence of U.S.-listed stocks.

• Other notable exchanges include Hong Kong (8.86%), Frankfurt (8.5%), and Madrid (7.56%), reflecting the global reach of renewable energy.

Country Breakdown:

• United States (45.04%)

• Germany (8.5%)

• Spain (7.56%)

• Canada (6.35%)

• China (5.28%)

• … and more, spanning Denmark, Hong Kong, the United Kingdom, Brazil, Italy, Portugal, Israel, and Finland.

This geographic and sector diversification aims to mitigate risks associated with regional policy shifts and market-specific economic cycles, while capitalizing on worldwide adoption of clean energy solutions.

Dividend Profile

• Overall Dividend Yield: 2.13%

• Dividend-Paying Instruments: 16 out of 30 holdings

• Upcoming Dividends (next 30 days): 2 scheduled payments

• Highest Dividend: Companhia Energética de Minas Gerais (CIG) at 10.36%

Investors seeking a blend of potential capital appreciation and income may find these dividends appealing, especially given that 16 companies in the portfolio distribute dividends.

Next Dividends (Selected):

• SSE.L – Ex-Dividend on Jan 2 ($0.27 per share)

• ENEL.MI – Ex-Dividend on Jan 20 ($0.23 per share)

Risk and Return Metrics

Key Metrics (All Time)

• Beta: 1.02

• Sharpe Ratio: 0.12

• Sortino Ratio: 0.17

• Jensen’s Alpha: -8.25

• Omega Ratio: 0.75

• Treynor Ratio: 0.27

• Information Ratio: -0.41

• Calmar Ratio: 0.04

These figures highlight that while the portfolio moves somewhat in tandem with the broader market (Beta ~1.0), its risk-adjusted performance (Sharpe, Sortino) has been modest so far. This suggests that returns may fluctuate more sharply in response to broader sector or economic shifts.

Rebalancing and Management

The RenewableEnergy Smart Portfolio is managed by eToro’s Investment Team and rebalanced on an annual basis or at management’s discretion, based on market conditions. Minimum and maximum asset allocations are implemented to avoid under- or overexposure to any single holding.

Final Thoughts

With governments and corporations worldwide pursuing lower carbon footprints, renewable energy stands at the forefront of the global energy transition. The eToro RenewableEnergy Smart Portfolio offers investors a curated, diversified entry into this evolving sector, focusing on firms pushing the boundaries of solar, wind, hydrogen, and advanced energy technologies.

While the sector can be prone to volatility, the portfolio’s approach—spreading investments across various geographies and sub-sectors—may help moderate risk. The minimum $500 investment threshold also makes it accessible to a broad range of investors eager to gain exposure to the shift toward cleaner, sustainable power sources.