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Smart Portfolios vs ETFs vs copy trading: three ways to invest compared
How a ready-made portfolio, an ETF and copying an investor differ in who decides, diversification, costs, minimums and risks, and which fits which goal.
In short
- The three differ mainly in who decides: an index or rule (ETF), a defined strategy (Smart Portfolio) or one person (copy trading).
- They also differ in minimums, costs and how easy it is to see what you hold.
- None removes market risk, and none is "best": the right one depends on your goal, horizon and how much you want to be involved.
What is the difference between a Smart Portfolio, an ETF and copy trading?
| ETF | Smart Portfolio (ready-made portfolio) | Copy trading | |
|---|---|---|---|
| What you hold | Units of one fund that tracks an index or strategy | A basket of assets or investors around a theme | A mirror of one investor's portfolio |
| Who decides | The index rules or the fund manager | A defined strategy, rebalanced periodically | One person, whenever they act |
| Diversification | Depends on the index: broad or narrow | Built in, but depends on the theme | Depends entirely on that person |
| Transparency | High: published holdings and a clear cost figure (TER) | Composition shown on the platform | Holdings visible, but they can change quickly |
| Your effort | Low | Low to medium | Medium: you must keep checking who you copy |
| Main risk | Market falls and concentration in the index | Theme concentration | Trader behaviour, leverage and sudden changes |
For the first two, see ETFs versus single stocks and Smart Portfolios explained. For copying, see copy trading versus copy investing.
Which one fits which situation?
These are general considerations, not recommendations.
| If you mostly want... | It points towards | Watch out for |
|---|---|---|
| Low effort and a clear, cheap structure | A broad ETF | You accept the whole market, including the falls |
| A ready-made basket around a theme | A Smart Portfolio | A theme can fall out of favour and be concentrated |
| To follow a specific person's style | Copy trading | You depend on their discipline, and a record can end |
| To start with a small amount | An ETF, because of the lower minimums | A fixed fee can weigh on small trades |
| To understand it before risking money | A demo first | It does not test your emotions: see what a demo teaches |
How do costs and minimums compare?
- ETF: the fund's yearly cost (TER) plus the broker's commission, spread and currency conversion if any.
- Smart Portfolio and copy trading: the platform's fees plus the spreads and costs of the underlying positions that are opened for you, and currency conversion if any.
- Minimums: they vary a lot between products and platforms, so always check the current ones before planning.
To compare properly, add up every line for your own amounts: see broker fees explained and how to choose a trader to copy.
A concrete example: the three options on eToro
Data from eToro's official help and fee pages, checked on 5 October 2026. They can change: verify on the site before deciding.
| Option | Minimum, according to eToro | What else eToro says |
|---|---|---|
| ETFs | $10 per trade | Zero commission on ETF trades, regardless of size, for non-leveraged positions. The ETF's own yearly cost still applies. |
| Smart Portfolios | $500 for Thematic Market and Partner Portfolios, $5,000 for Top Trader Portfolios | Curated collections that track a theme or strategy, periodically rebalanced. Each asset or person is counted as a single investment and opens in proportion to your funds. |
| Copy trading | $200 per Popular Investor | Your copy mirrors the investor's portfolio. Copy Stop Loss defaults to 40% of the amount. |
- Risk score: eToro shows a risk score from 1 to 10, based on historical volatility, for investors and Smart Portfolios. It does not cover all types of risk.
- Copy Stop Loss: applies to both copying and Smart Portfolios, with a minimum of 5% of your invested amount.
- What to check: the fees that apply to Smart Portfolios and copies on your account, because I could not confirm a separate figure on the pages I read.
These tools do not remove risk: you can lose part or all of what you invest. If you want to compare them on the platform, you can open eToro through my affiliate link. I earn a commission if you open an account: read the disclosure.
Capital at risk. The value of investments can go down as well as up, and you may lose some or all of the money you put in. Copy trading and Smart Portfolios do not remove this risk and are not investment advice. Past performance is not a guide to future results.
Frequently asked questions
Is a Smart Portfolio the same as an ETF?
No. Both hold a basket under one product, but an ETF is a regulated fund with a published cost and an index, while a Smart Portfolio is a platform product built around a strategy or theme. Compare their composition and costs separately.
Is copy trading riskier than buying an ETF?
It can be, because the outcome depends on one person's decisions and may involve leverage or concentration. A broad ETF depends on the market as a whole. Neither is risk free.
Which is best for a beginner?
There is no single answer. It depends on your goal, horizon and the effort you want to put in. Learning how each works, ideally with a small amount, matters more than the label.
Can I combine them?
Many platforms let you, but combining adds overlap and costs. Check that the holdings do not duplicate each other and that you understand each part.
What are the minimums on eToro?
According to eToro: $10 per trade for ETFs, $500 for Thematic Market and Partner Smart Portfolios, $5,000 for Top Trader Portfolios and $200 to copy a Popular Investor.
Does eToro charge commission on ETFs?
According to eToro's fee page, zero commission applies to ETF trades regardless of size for non-leveraged positions. The ETF's own costs and other charges such as currency conversion still apply.