Survey Finds Nearly Half of U.S. Investors Want Alternative Assets, While Advisors Highlight ETFs as a Practical Gateway

Interest in assets that sit outside the traditional lineup of stocks, bonds and cash is accelerating across the United States. A new nationwide survey conducted this spring by Charles Schwab shows that 45% of respondents are eager to own alternative investments, and financial advisors say exchange-traded funds (ETFs) may offer the simplest path to that exposure.

Alternative investments, often shortened to “alts,” encompass a wide range of holdings, including private equity, real estate, commodities such as gold and oil, and cryptocurrencies. Because many of these assets are not traded on public markets, they can carry unique risks, higher fees and intricate structures that are unfamiliar to most retail investors.

Schwab’s poll captured the views of 2,400 individuals, combining 2,000 adults with an additional 200 members of Generation Z and 200 cryptocurrency investors. Two-thirds of those surveyed agreed that long-term investment success now requires supplementing a core portfolio of stocks and bonds with other asset classes. The findings echo a broader trend of skepticism toward conventional holdings, particularly among younger adults—a sentiment market observers have labeled “financial nihilism.”

The heightened curiosity about alternatives is emerging just as ETFs are attracting record amounts of cash. State Street Global Advisors reported earlier this month that investors have poured more than $1 trillion into U.S.-listed ETFs so far this year, a pace that would eclipse any previous annual total. Analysts told CNBC that a significant share of those inflows has moved into products backed by gold or cryptocurrencies, underscoring a convergence between enthusiasm for alts and the popularity of ETF vehicles.

Advisors say that intersection is useful because ETFs can help sidestep some hallmark complications of private investments. Cathy Curtis, founder and chief executive of Curtis Financial Planning in Oakland, California, noted that private funds often impose multiyear lockups, limited redemption periods or require liquidation of underlying holdings before investors receive their proceeds. Shares of an ETF holding similar assets, by contrast, can generally be bought and sold throughout regular and extended trading hours.

Given the risks, Curtis recommends capping allocations to alternatives at 10% to 15% of a large portfolio and below 5% for investors with more modest balances. She also stresses that objectives such as buying a home, funding college tuition or building retirement savings may be better served by the traditional mix of equity and fixed-income securities.

The regulatory environment is gradually opening additional doors. An executive order signed in August by then-President Donald Trump seeks to make it easier for workplace retirement plans to include alternative products. Meanwhile, recent adjustments by the U.S. Securities and Exchange Commission could accelerate the introduction of spot bitcoin ETFs—a development that market participants have long anticipated. For readers seeking details on the regulatory framework governing ETFs, background information is available directly from the Securities and Exchange Commission.

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Despite the momentum behind alts, some industry experts urge investors not to overlook the historical resilience of broad stock index exposure. Andy Reed, who heads behavioral economics research at Vanguard, warns that chasing the newest trend or headline often damages long-term outcomes. He calls attention to data showing that “boring investing still works,” a reference to the steady returns generated by diversified equity portfolios.

Market history supports that view. Morningstar calculates that a $1,000 investment in the S&P 500 on Feb. 1, 1970 would have grown to more than $379,000 by Oct. 20 of this year. Even a relatively recent $1,000 purchase of the same index on Jan. 1, 2020 would be worth over $2,200 today—despite the market turmoil that accompanied the COVID-19 pandemic.

Financial professionals generally agree that alternatives can play a constructive, though limited, role in a diversified strategy. ETFs allow investors to participate in segments such as private credit, infrastructure or digital assets without assuming the illiquidity or high minimums common to direct funds. At the same time, advisors caution that core objectives—retirement income, housing goals or education funding—remain heavily reliant on the disciplined accumulation of traditional securities.

Whether investors ultimately embrace a 5% or 15% slice of alternatives, planners emphasize the importance of understanding each product’s structure, fees and risks before committing capital. The surge in ETF offerings makes it easier to reach those markets, but the basic principles of asset allocation and long-term discipline continue to anchor most professional guidance.

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