Introducing Alternative Asset Investing on Public.com
Our mission is to make the public markets work for all people. As part of that mission, we’re now expanding the very definition of what constitutes “the public markets.”
Today, we’re excited to announce the launch of alternative assets on Public.com. Members can now expand their investment portfolio to a host of new alternative assets, including contemporary art, high-end trading cards, luxury items, vintage comics, and more. They can then manage these investments right alongside their portfolio of stocks, crypto, and ETFs — all from their Public.com account.
Why these assets? Why now?
The wealthiest individuals have been investing in art and collectibles for generations. According to a 2020 survey, ultra-high net worth individuals already allocate around 5% of their net worth to collectibles, including art. Their reasons aren’t a secret:
- Many of these asset categories have track records of strong returns. For instance, according to Artprice, blue-chip art has strongly outperformed the S&P 500 since 2000.
- Similarly, many of these asset categories also have shown low correlation to equities markets, making them a strong tool for portfolio diversification.
So, while investing in these “alt” assets is nothing new, what is a recent phenomenon is these investments being made accessible to the everyday investor. Right off the bat when you’re talking about a $500,000 trading card or a million-dollar Banksy painting, those price points are going to immediately exclude the vast majority of investors. Add to that the legwork required to acquire, insure, store, and (one day) sell these assets and it becomes abundantly clear why these types of investments are reserved for the very few.
How we make alts accessible
At Public.com, we’re taking steps towards changing all this by allowing anyone to invest in shares of these assets — in the same place they manage their stocks, ETFs, and crypto.
It starts with our team working with our extensive network of collectors, galleries, and auction houses to vet hundreds of potential assets each month. They then work to bring those few they believe to have the strongest investment potential to the Public.com platform.
From there, we file an offering with the SEC to qualify the securities in the holding company that holds the asset — a process that allows us to offer fractional interests (or shares) to Public.com members. Once the asset is on the Public.com platform, investing is as simple as buying a share of stock. And by having all of these varied investments available in one app, we remove the friction and headache associated with managing a portfolio across a half dozen or more different platforms.
Looking ahead
The team is super excited about the 25+ alternative assets now available for investment on Public.com, but we’re not stopping here. Our long-term goal is to not only bring more great investment opportunities across art and collectibles to Public.com, but to continue to knock down barriers for retail investors by making more and more asset categories widely accessible to all.
So, while we’re still finalizing the details, the team is hard at work at evaluating new categories as varied as private equity, vacation rentals, music royalties, and more.
Stay tuned!
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Brokerage services for US-listed, registered securities available on Public.com are offered by Open to the Public Investing, Inc., member of FINRA & SIPC, and a wholly-owned subsidiary of Public Holdings, Inc. Investing in securities is risky and you may lose your entire principal investment. Brokerage services for alternative investments available on Public.com are offered by Dalmore Group, LLC, member of FINRA & SIPC. Alternative investments are over-the-counter equity securities that have been issued pursuant to Regulation A of the Securities Act of 1933. Dalmore Group, LLC and Open to the Public Investing, Inc. are not affiliated entities.
