Many investors are looking for opportunities outside of traditional stocks and bonds.
If that’s you, you should consider Yieldstreet and Fundrise, two companies at the forefront of alternative investments.
This article will compare Yieldstreet vs Fundrise and help you weigh the pros and cons.
What is Yieldstreet?
Yieldstreet provides a variety of alternative investment options, such as real estate, venture capital, crypto, art, private equity, and more.
They boast that they have access to more alternatives than any other platform.
One of the core features of Yieldstreet is that they allow you to compare many different investments and build your own portfolio. They offer a wealth of information on their site to help you analyze these opportunities and choose the ones that suit your needs.
While Yieldstreet has only been around since 2014, they have quickly gained credibility from sources like the Wall Street Journal.
Yieldstreet is for those looking for riskier assets with potential for high returns. Their platform is designed to help you make informed decisions, which is important when you’re dealing with alternatives that might be riskier than traditional investments.
Not only do they offer custom portfolios where you can choose the specific investments that you want, but they also have pre-built portfolios that do the legwork for you and have lower minimums.
What is Fundrise?
Fundrise gives investors access to commercial real estate through crowdfunding.
Real estate has, for many years, been hard for the average person to invest in because of the high upfront costs, but Fundrise makes real estate investing easier by pooling many investors’ money together.
There are five account types with fundrise based on the size of your initial investment. Fundrise has lower minimums compared to top alternatives, and you can get started with as little as $10. With an initial investment of $100,000, however, you can gain access to additional features, such as specialized funds and priority support.
They follow a “value investing” strategy, and they vet the investments for you as they build their portfolios.
Yieldstreet vs Fundrise Key Differences
Let’s compare Yieldstreet vs Fundrise on some of the most important factors.
Investment Options
Fundrise exclusively offers real estate investing, while Yieldstreet has a wide variety of alternative investment options.
Fundrise focuses on portfolios that are made for you–called eREITs–so you don’t have to select the individual investments, only the overall portfolio strategy. Yieldstreet, on the other hand, focuses on individual investments; though they do have some pre-built fund options.
Fees
Fundrise charges a flat 1% on their portfolios, while Yieldstreet’s fees can vary by investment in the range of 0% to 2.5%.
Minimum Investment
With Fundrise, the minimum investment is only $10, though you do unlock more features as the portfolio grows.
The minimum investment on Yieldstreet varies by investment type. The lowest option is the Prism Fund with a minimum of $2,500, while their individual offerings typically have minimums of $10,000.
Who Can Invest?
While many alternative investment companies are only available to accredited investors, such as First National Realty Partners, you do not have to be accredited to invest through fundrise.
To invest in the individual offerings of Yieldstreet–which is their primary business–you do have to be accredited. However, you do not have to be accredited to access their prism fund.
Length of Investment
Yieldstreet investments are generally short-term, between one to three years.
Fundrise investments are long-term, and they can be difficult to get out of quickly.
Yieldstreet vs Fundrise Bottom-Line
Both Yieldstreet and Fundrise offer easy access to alternative investments, but they differ in some pretty significant ways.
Each company can be a great option to add diversification to your portfolio, but the one that’s right for you will depend on your situation.
Here are some reasons you might choose Yieldstreet:
- If you want a broad range of alternatives, not just real estate
- If you are an accredited investor and you want to analyze, compare, and choose your own investments
- If you have at least $2,500 to invest
- If you’re willing to accept the risk associated with more speculative investment options
- If you’re willing to pay higher fees for the chance of higher returns
Here are some reasons you might choose Fundrise:
- If you’re looking for commercial real estate portfolios
- If you don’t want to pick out individual investments and would rather have portfolios put together for you
- If you don’t have much to invest starting out; though they do have options for larger investments
- If you don’t want to pay fees higher than 1%
- If you’re looking for a long-term investment, and you’re not concerned about accessing the funds quickly
Conclusion
Alternative investments can be a great addition to a portfolio. They don’t tend to move exactly like the stock market and they have the potential for high returns. But they can also have additional risks.
You should check these two companies out for yourself and see if they’re the right fit.
Check out Yieldstreet here and Fundrise here.
