Online broker eToro has launched XtremeWeather, a new portfolio that provides retail investors with exposure to companies best positioned to prosper from increasingly frequent and severe extreme weather events.
The XtremeWeather portfolio includes 30 stocks from key industries such as renewable electricity, industrial machinery, supplies and components, fertilizers and agricultural chemicals, retail home improvement, electrical components and equipment and natural gas, which are at the forefront of supporting the recovery and normalization after extreme weather events.
To create this portfolio, the team evaluated thousands of stocks, ranking them based on criteria such as market capitalization, ESG score, liquidity parameters, analyst ratings and 12-month sales growth.
Dani Brinker, Head of Investment Portfolios at eToro, commented:
“2023 will be remembered as the year of climate change. From the effects of El Niño in Australia to floods in Italy and wildfires in Maui, hardly any continent has been spared.
With the world climate conference, COP28, just around the corner, we wanted to offer private investors the opportunity to invest in their climate-friendly portfolios and diversify into industries that will help rebuild cities, communities and wildlife around us after these extreme climate events.
The portfolio will be rebalanced annually or on demand to maintain relevance and optimize performance. To deal with unpredictable weather and the influence of any new economic and government policies, the allocation strategy allocates equal weight to all 30 stocks (3.33%). This approach is designed to reduce concentration risk and enhance overall portfolio resilience.
Initial investment starts at $500 USD and investors can access tools and charts to monitor portfolio performance, while eToro’s social media feed will keep them updated on developments in the sector. This portfolio is currently not available to US users.