eToro Launches Smart Portfolio LuxuryBrands, Offering Long-Term Exposure to Luxury Goods Industry

eToro, the social investing network, announced recently the launch of LuxuryBrands, the latest addition to its suite of themed Smart Portfolios, offering investors long-term exposure to the luxury goods industry.

The luxury goods market has historically withstood passing fads to retain essential value and allure to customers, giving luxury firms crucial pricing power.

"Despite the cutbacks on discretionary spending prompted by the pandemic, luxury brands have strongly recovered and more than held their own value in a world of rising inflation," said Dani Brinker, Head of Investment Portfolios at eToro. "Their timeless nature made them resilient to shifts in consumer demand, and after contracting in 2020, the market grew by 13% to 15% in 2021 to EUR1.14 trillion."

The accelerated shift towards e-commerce has only boosted the power of luxury brands, with online stores driving the sector recovery. Monobrand online stores now make up nearly half (40%) of the point of sale to consumers.

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To reflect the variety of sectors in the industry, the LuxuryBrands Smart Portfolio presents a highly diversified thematic selection of 25 stocks, including brands such as Ferrari, Hermes, and Marriott International, the parent company of the Ritz Carlton and St. Regis. It also offers access to fashion parent companies including LVMH, which includes Tiffany & Co. and Louis Vuitton in its stable of brands; Kering, the holding company of Gucci, Saint Laurent and Balenciaga; and the Richemont Group, which owns high jewellery brand Cartier and watchmaker IWC.

Dani Brinker concluded: "By packaging up a selection of stocks into a ready-made portfolio, we are enabling our customers to invest in themes and gain exposure to markets while maintaining important diversification across the automotive, textile and household goods sectors. By investing in LuxuryBrands, our customers will be able to participate in one of the most timeless consumer goods segments in the world."

eToro's Smart Portfolios offer investors ready-made, fully allocated exposure to various market themes. Bundling together several assets under a defined methodology and employing a passive investment approach, eToro's Smart Portfolios are long-term investment solutions that offer diversified exposure with no management fees.

Initial investment starts from USD 500 and investors can access tools and charts to track the portfolio's performance, while eToro's social feed will keep them up-to-date on developments in the sector. For now, this portfolio is not available to US users.