Tired of low returns and market volatility? Alternative investments—like gold, crypto, REITs, and private debt—offer new ways to grow your wealth. But are they worth it? With higher risks and fewer regulations, they’re not for everyone. Learn how they work and the best options for Canadians. Ready to explore new opportunities?
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Alternative investments are things you can invest in besides stocks, bonds, and cash. They include real estate, gold, crypto, private debt, and collectibles. These investments can offer big rewards but also come with higher risks and fewer rules. Many wealthy investors use them to grow and protect their money.
What it is: Investments in early-stage startups or private companies with high growth potential
How to invest: Direct investment, venture capital funds, angel investing
Pros: Potential for massive returns, early access to high-growth companies
Cons: High failure rate, long investment horizon, limited liquidity
Risk level: High (most startups fail, but winners can deliver huge gains).
Access for Retail Investors (i.e. you)
Traditionally, these investments were only available to accredited investors — those with high income or net worth. Now, you can access alternatives through ETFs, online platforms, fractional ownership and fintech solutions.
How to invest in alternative assets
Investing in alternative assets varies in difficulty. Some, like venture capital and private debt, are harder to access because they require high capital, long lock-up periods, or accreditation. However, new fintech platforms, fractional investing, and ETFs now make it easier for everyday investors to buy into real estate, crypto, commodities, and even private equity.
Zero-commission stock and ETF trading – No fees on Canadian trades
Easy-to-use app with sleek design – Perfect for beginners and active investors
Access to crypto, private equity, and REITs – One-stop shop for alternative assets
Wealthsimple offers a broad range of investment options beyond traditional stocks and ETFs. Investors can trade stocks and ETFs commission-free, making it a cost-effective option for self-directed investing. Wealthsimple crypto gives you access to cryptocurrency ETFs and well as over 70 crypto coins.
You can diversify your portfolio with REITs and alternative ETFs, making it easier to access real estate and other asset classes.
For those looking beyond public markets, Wealthsimple recently introduced private equity investments, partnering with global firms to give Canadians exposure to high-growth private companies — something historically reserved for institutional investors. A
Alternative investments can diversify your portfolio, hedge against inflation, and offer higher return potential. However, they often come with higher risk, less liquidity, and more complexity than traditional investments. Whether they’re right for you depends on your risk tolerance, investment goals, and time horizon.
Pros
Diversification – Alternatives reduce reliance on stocks and bonds
Inflation protection – Assets like gold and real estate hold value over time
Higher return potential – Some alternatives outperform traditional investments
Cons
Less liquidity – Harder to sell quickly compared to stocks
More complexity – Requires research and understanding of risks
How to start investing in alternative assets
Low risk: Start with REITs, gold ETFs, or alternative ETFs for easy diversification.
Moderate risk: Consider private debt, commodities, or crypto ETFs.
High risk, high reward: Look into venture capital, private equity, or direct crypto investments.
Alternative investment management refers to the strategies and processes used to oversee and optimize investments outside traditional stocks and bonds. This includes managing private equity, hedge funds, real estate, commodities, and venture capital. These assets often require specialized expertise, as they are less regulated, less liquid, and involve higher risks than conventional investments.
Yes, a hedge fund is considered an alternative investment. It pools capital from investors and uses diverse strategies — such as long/short positions, derivatives, and leverage — to generate returns. Hedge funds often target high-net-worth individuals and institutions due to high fees and minimum investment requirements. They aim to outperform traditional markets but come with higher risk and limited liquidity.
Yes, derivatives — such as options, futures, and swaps — are often classified as alternative investments. They derive value from underlying assets like stocks, commodities, or currencies. Investors use them for hedging, speculation, or leverage. While derivatives can enhance returns, they are complex, carry significant risk, and may not be suitable for all investors due to their volatility and leveraged nature.
Liquid alternative investments are funds that offer exposure to alternative assets but maintain higher liquidity, allowing easier buying and selling. Examples include hedge fund-style mutual funds, alternative ETFs, and REITs. These provide diversification and hedge against market volatility while remaining more accessible to retail investors than traditional private alternative investments.
Real estate is one of the most popular alternative investments. It offers tangible value, long-term appreciation, and income through rental properties or REITs. Gold and cryptocurrency have also gained significant popularity, particularly as inflation hedges. Private equity and hedge funds remain top choices for institutional and high-net-worth investors seeking higher returns.
Tyler Wade
Personal finance content strategist & writer
Tyler Wade
Personal finance content strategist & writer
Tyler Wade has worked in personal finance for over 5 years writing for brands like Ratehub, Forbes, KOHO, and now Money.ca.
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