Alternative investments are assets beyond traditional stocks, bonds, and cash. For decades, they were the exclusive domain of large institutional investors and the ultra-wealthy. Today, many categories of alternative investments are increasingly accessible to ordinary Canadians, offering diversification, inflation protection, and return potential beyond what public markets offer. This guide introduces the main categories and how Canadians can access them.
Alternative investments broadly include anything that is not a publicly traded stock, bond, or government-issued cash. Major categories include:
Private equity involves investing in companies that are not publicly traded. Historically restricted to institutional investors and accredited investors, access for retail Canadians is growing through platforms, listed PE funds, and regulatory changes. Private equity can offer higher long-term returns than public markets but requires long lock-up periods (7–10 years) and carries higher risk and illiquidity.
Beyond owning a home or rental property, Canadians can access real estate through:
Infrastructure — airports, toll roads, utilities, pipelines, cell towers — provides stable, inflation-linked cash flows. Canadians can access infrastructure through TSX-listed companies (Brookfield Infrastructure Partners, Canadian Utilities) or through infrastructure-focused ETFs.
Gold and silver are among the most accessible alternative assets for Canadians. Physical bullion, ETFs, and mining stocks offer multiple entry points at low minimums. Gold in particular has a centuries-long track record as an inflation hedge and store of value.
Bitcoin and other cryptocurrencies have emerged as a new category of alternative asset. Canada's crypto ecosystem is well-developed with multiple regulated exchanges, Bitcoin ETFs available on the TSX, and growing institutional adoption. Crypto is highly volatile and speculative but has demonstrated low long-term correlation with traditional assets in certain periods.
Fine art, rare wine, vintage cars, sports memorabilia, and watches have historically generated returns comparable to or exceeding public equities for top-tier assets. They are illiquid, require expertise to select quality pieces, and have high transaction costs. Fractional art investment platforms are making this more accessible.
Agricultural land in Canada has delivered strong long-term returns driven by rising food demand and finite supply of arable land. Direct farmland ownership requires significant capital and management. Farmland REITs and investment platforms offer more accessible entry points.
P2P lending platforms allow investors to lend directly to individuals or businesses, earning interest rates higher than GICs or savings accounts. In Canada, the P2P lending market is smaller than in the U.S. and U.K., but platforms do exist. Principal risk is significant — borrower defaults can erode returns.
Many private alternative investments in Canada are only available to "accredited investors" under National Instrument 45-106. An individual qualifies as an accredited investor if they:
Non-accredited Canadians can still access alternatives through TSX-listed vehicles (REITs, infrastructure companies, crypto ETFs), certain exempt market products, and equity crowdfunding platforms.
Most financial advisors recommend that alternatives represent no more than 10–20% of a retail investor's portfolio. The appropriate allocation depends on your investment horizon, risk tolerance, and liquidity needs. For illiquid alternatives, only invest money you will not need for 5–10+ years.
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