{"id":37265,"date":"2025-10-25T11:41:44","date_gmt":"2025-10-25T11:41:44","guid":{"rendered":"https:\/\/financialrush.com\/?p=37265"},"modified":"2025-10-25T11:41:44","modified_gmt":"2025-10-25T11:41:44","slug":"using-etfs-to-invest-in-alternative-assets","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=37265","title":{"rendered":"Using ETFs to invest in alternative assets"},"content":{"rendered":"

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Sdi Productions | Istock | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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Amid growing consumer interest in alternative investments<\/a>, financial advisors say it’s important to find the right way to invest.<\/p>\n

Alternative investments are a broad category that covers many assets outside traditional holdings of cash, stock and bonds. Alts include private-market assets<\/a>, real estate, commodities such as gold<\/a> and oil, and cryptocurrencies, among others.<\/p>\n

Investing in these products can entail added risks and complexities, advisors said. One smart way to get exposure to them is a more traditional vehicle: exchange-traded funds.<\/p>\n<\/div>\n

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More from ETF Strategist:<\/h2>\n
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Here’s a look at other stories offering insight on ETFs for investors.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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The strategy represents an intersection of investor interest. Investors have put more than $1 trillion into U.S.-based ETFs so far this year, on pace to set a new annual record, State Street Investment Management said earlier this month<\/a>. Much of that inflow has gone to gold and crypto ETFs<\/a>, other analysts recently told CNBC.<\/p>\n

Younger people, especially, are expressing disillusionment <\/a>with conventional holdings, a phenomenon experts have dubbed “financial nihilism.”<\/p>\n

Two-thirds of Americans surveyed said investing success requires supplementing traditional assets, according to a new survey <\/a>from Charles Schwab. Nearly half of respondents, 45%, said they are interested in owning alternatives, such as private equity, real estate partnerships and hedge funds.<\/p>\n

Schwab’s survey, conducted this spring, polled 2,400 people: a sample of 2,000 adults, plus an additional 200 Gen Z respondents and 200 cryptocurrency investors.<\/p>\n

Shifting regulations may also allow more people to access a wider variety of alternative assets.<\/p>\n

President Donald Trump signed<\/a> an executive order in August designed to make it easier to get alternative products into workplace retirement plans. Meanwhile, the U.S. Securities and Exchange Commission recently made changes<\/a> that could speed the launch of spot crypto ETFs.<\/p>\n<\/div>\n

‘Boring investing still works’<\/h2>\n
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Using ETFs to get exposure to alts can help you sidestep some of the complexities<\/a> of investing in such assets directly \u2014 namely, a lack of liquidity, said Cathy Curtis, the founder and CEO of Curtis Financial Planning in Oakland, California.<\/p>\n

“These [private] investments often have multi-year lockup periods, limited redemption windows or depend on the underlying fund liquidating its holdings before investors can get paid out,” said Curtis, a member of CNBC’s Financial Advisor Council<\/a>.<\/p>\n

ETFs that hold these less-liquid assets, however, can typically still be traded freely<\/a> throughout the day and during extended hours.<\/p>\n<\/div>\n

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Curtis recommends limiting alternative investments to between 10% and 15% if you have a large portfolio, and to less than 5% if you have a smaller nest egg.<\/p>\n

Those who are investing to buy a house, send their children to college or retire one day may find traditional stocks and bonds are still a better bet for the bulk of their portfolio, said Andy Reed, head of behavioral economics research at Vanguard.<\/p>\n

“Although there is constant noise in the investment landscape, chasing fads or the latest headlines can negatively impact an investor’s portfolio in the short and long term,” Reed said.<\/p>\n

History shows that putting money into a broad basket of stocks is highly profitable over the long term<\/a>. If you invested just $1,000 in the S&P 500 on Feb. 1, 1970, you’d have more than $379,000 as of Oct. 20, according to Morningstar Direct. A $1,000 investment in the index on Jan.1, 2020 would be worth over $2,200 on Oct. 20.<\/p>\n

“Boring investing still works,” Curtis said.<\/p>\n<\/div>\n<\/div>\n\n
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