CIBC Investor's Edge
Build your own investment portfolio and enjoy low commissions
Diversify like the 1%
While stock portfolios make up the bulk of asset holdings among high net worth households, real estate and alternative assets have grown in importance and popularity.
Turns out ultra-high net-worth individuals and households generally have some form of alternative investment in their portfolio.
According to Knight Frank’s global survey of over 600 wealth managers that manage nearly US$3 trillion in assets, primary and secondary homes account for around 26% of the overall net worth of ultra-high net worth individuals in North America.
It’s clear that investors who own real estate tend to accumulate significantly larger portfolio earnings, over time, and this leads to larger and more substantive net worth gains.
While buying a home is one strategy, not everyone is comfortable with becoming a homeowner, a landlord or tying up significant sums of money in one or two properties.
That doesn’t mean you can’t invest in real estate. While accredited investors can find private equity crowdfunding platforms that specialize in real estate, retail investors can gain market exposure to real estate earnings using Real Estate Investment Trusts (REITs).
REITs own and operate a range of real estate properties, including office buildings, apartments, hospitals and malls. Investors earn returns through dividends and potential price appreciation of the portfolio of properties — but you aren’t forced to deposit large sums as a down payment.
Instead, you buy and sell the shares of REITs — making it an attractive option for those who want exposure to the lucrative real estate market, without the hassle of property ownership.
You can buy and sell REITs on the stock market through a self-directed online trading platform like CIBC Investor’s Edge, where you’ll pay low commissions on trades and have no or minimal account maintenance charges, depending on the size of your portfolio.
Get 100 free online equity trades when you open a CIBC Investor’s Edge account using promo code EDGE100†. Offer ends September 30, 2025.
CIBC Investor's Edge
Build your own investment portfolio and enjoy low commissions
How to find the right asset mix
It can be tricky to figure out the right mix of investment types at your individual income level, as variances in net worth and financial goals make generalized advice difficult to follow.
If you’re looking for peace of mind, hiring a financial advisor can help you to feel good about your money moves.
You can also use an all-in-one money management tool like Monarch Money to help you determine your asset allocation.
The app seamlessly connects all your accounts in one place, giving you a clear view of your investments, net worth, loans and expenses. You can see your investment allocation and adjust your risk profile as needed. Plus, you can create personalized dashboard to track your savings goals, investment performance or to get insights into your cash flow and spending — whatever is most important to you.
Get 50% OFF your first year with the code MONARCHVIP today.
Sources
1. Statistics Canada: High income tax filers in Canada
2. Statistics Canada: Distributions of household economic accounts for income, consumption, saving and wealth of Canadian households, fourth quarter 2024
3. Knight Frank: The Wealth Report
4. Fortune Magazine: Millennials are discovering this recession-resistant asset of the super-rich—and some indexes show it’s outperforming the S&P 500
