Rich, young investors keep most of their wealth out of stocks — here's where their money is actually going

Elon Musk, Warren Buffett, and Jeff Bezos stand among the wealthiest Americans ever, and, like many ultra-rich investors, they hold the bulk of their wealth in stocks. Just look at Buffett’s Berkshire Hathaway, which recently reached an agreement to buy another $10 billion worth of shares in Alphabet, Google’s parent company.

But when it comes to investing in the stock market, market volatility might be prompting today’s rich, young investors to take a slightly different approach.

Individuals aged 21 to 43 with at least $3 million in assets have only 25% of their portfolio invested in stocks, compared to 55% for wealthy investors aged 43 or older, according to a 2022 Bank of America survey.

An overwhelming 93% of young millionaires said they plan to boost their exposure to alternatives in the coming years. So, which alternative investments are actually winning their attention and their money?

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A golden opportunity to hedge against inflation

The Bank of America survey revealed that among wealthy young investors, 45% own gold as a physical asset, and another 45% are interested in holding it.

Historically, gold has served as a hedge against inflation and market volatility. Many investors turn to “safe haven” assets like gold during economic and geopolitical instability to preserve their wealth.

Gold prices surged by roughly 60% over the course of 2025, hitting a string of record highs, with J.P. Morgan projecting that gold prices could push toward the US$5,000 mark by the end of 2026.

There are many gold assets to choose from, including gold bars, coins, and gold stocks.

Gold e-certificates, for instance, give you exposure to physical gold without the need to worry about storage, insurance or security. The issuing institution stores the metal and allows you to trade and redeem easily.

Gold ETFs offer another accessible route, letting you buy units of a fund that tracks the price of gold. They trade on the Toronto Stock Exchange like any stock, so you can add to or trim your position easily, often with lower fees than traditional mutual funds or physical gold products.

Self-directed platforms such as Questrade make it easy to purchase both gold e-certificates and gold ETFs directly from your trading dashboard.

You don't pay any commission fees when you buy or sell Canadian- or U.S.-listed stocks or ETFs online with Questrade.

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Real estate: rich with opportunity

Real estate has long been considered a solid portfolio hedge, as rent and property values tend to increase with inflation. It’s no surprise that high-net-worth individuals — regardless of their age — see opportunity in this asset.

In the Bank of America survey, 31% of younger people said real estate presents the greatest opportunities for growth. Federal Reserve data also shows that the top 1% of Americans hold over $6 trillion in real estate assets.

If you don’t have the funds for a hefty down payment or want to avoid the hassles of being a landlord, consider investing in Real Estate Investment Trusts (REITs) or REIT exchange-traded funds (ETFs).

REITs are publicly traded companies that own and operate income-producing properties, including apartment buildings, warehouses and medical centres.

These companies distribute most of their taxable income to shareholders, which means you can potentially access steady monthly or quarterly payouts without having to buy or manage a property yourself.

REIT ETFs take this one step further by bundling multiple REITs into a single, low-cost fund, giving you instant diversification across sectors and geographic regions.

For investors who want real estate exposure without tying up large amounts of capital, you can invest in REITs and REIT ETFs within tax-advantaged accounts like a TFSA or RRSP with platforms such as Questrade.

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Cryptocurrency: more than a craze

Investors used to be skeptical about cryptocurrency, perhaps due to its speculative and highly volatile nature. Now, with evolving regulatory frameworks, the asset class has matured significantly — helping support a global crypto market cap hovering around $2.5 trillion as institutional capital floods the space.

It’s no surprise that the wealthy millennials and Gen Z are fond of this asset class. In the Bank of America survey, 29% of younger people said cryptocurrencies offer the greatest opportunities for growth, while only 7% of the older group agreed.

Rich young Americans also allocated 15% of their portfolios to crypto, compared to 2% of the older generation.

With more capital flowing into crypto, many investors are looking for accessible platforms to buy, manage and monitor their crypto investments.

Through Wealthsimple Crypto — Canada’s first regulated crypto platform — you can trade over 140 cryptocurrencies, transfer assets in and out of the platform, and manage everything alongside your stocks and savings.

For long-term holders, staking offers another way to potentially earn passive returns — up to 9% per year on select coins.

Trusted by more than 3 million Canadians, Wealthsimple manages over $100 billion in assets and provides $10 million in eligible coverage through the CDIC for chequing accounts and CIPF for investments. Plus, as licensed fiduciaries, Wealthsimple's advisors must put your financial interests first.

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Finding the right asset mix

Whether it’s gold, real estate or cryptocurrency, determining the right mix of assets for your portfolio isn’t one-size-fits-all.

Fortunately, you don’t have to navigate these choices blindly. Having access to the right data and educational resources can help you make informed decisions and avoid expensive mistakes.

If you find yourself in need of some guidance along the way as you ensure your investments are working for you, consider using a tool like Moby. As a stock market research platform, Moby can simplify the process with curated stock picks and investing advice.

Plus, Moby provides personalized financial insights based on your unique goals, real-time market updates and investment research formatted in easy-to-understand reports so you can make informed decisions about your portfolio without being an investing wiz.

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