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Hey Sylvia, Quick Question: What’s an Alternative? (Video)

By Sylvia Kwan

Sylvia Kwan has nearly 35 years in the investing industry, as well as a PhD in engineering economic systems from Stanford, and she helped build Ellevest from the ground up as our Chief Investment Officer. So you could say she knows a thing or two about investing. We decided to bottle up some of that golden knowledge for you in our new video series, “Hey Sylvia, Quick Question.”

Hot off the press: What’s an alternative?


Sylvia’s answer:

An alternative investment is any investment that’s not a stock or a bond. So, for example, take real estate; commodities such as corn or soybeans; precious metals like gold, silver, platinum; or even an art collection or a rare wine collection.

At Ellevest, we seek alternative investments that move differently from bonds and stocks. So, for example, if stocks take a downturn, whatever caused that downturn would be unlikely to impact an alternative investment in the same way.

Adding these types of investments to your portfolio helps diversify it, helps lower overall portfolio risk, and has the potential to enhance returns.


Disclosures

© 2019 Ellevest, Inc. All Rights Reserved.

Diversification does not ensure a profit or protect against a loss in a declining market. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives, provide you with a given level of income or reduce portfolio risk.

The information provided should not be relied upon as investment advice or recommendations, does not constitute a solicitation to buy or sell securities, and should not be considered specific legal, investment, or tax advice.

The information provided does not take into account the specific objectives, financial situation, or particular needs of any specific person.

Investing entails risk, including the possible loss of principal, and there is no assurance that the investment will provide positive performance over any period of time.

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Sylvia Kwan

Sylvia is the Chief Investment Officer of Ellevest. She researches and oversees Ellevest portfolios and develops the algorithms behind Ellevest’s investment recommendations.