--- title: "Alternative Generations: Millennials, Gen Z, and Ever-Changing Markets" description: Younger investors show affinity for a wide array of alternatives assets. How should advisors adapt to this generational shift? image: https://content.investmentsandwealth.org/hubfs/alternative-gen-tr.jpg --- [Skip to content](https://content.investmentsandwealth.org/blog/alternative-generations-millennials-gen-z-and-ever-changing-markets#main-content) [![Investments & Wealth Institute ](https://content.investmentsandwealth.org/hubfs/content-hub/iwi_logo_w294_h46.svg "Investments & Wealth Institute ")](https://investmentsandwealth.org/) Explore - [All Content](https://4812204.hs-sites.com/content-hub) - [Video](https://4812204.hs-sites.com/content-hub?type=Video) - [eBook](https://4812204.hs-sites.com/content-hub?type=eBook) - [Case Study](https://4812204.hs-sites.com/content-hub?type=Case+Study) - [Blog](https://4812204.hs-sites.com/content-hub?type=Blog) - [Podcasts](https://4812204.hs-sites.com/content-hub?type=podcast) - [Webinars](https://4812204.hs-sites.com/content-hub?type=webinar) - [Find An Advisor](https://www.investmenthelp.org/) - [Contact](https://investmentsandwealth.org/contact-us) - [My Dashboard](https://portal.investmentsandwealth.org/s/login/?startURL=%2Fs%2Fhome-page) - Certifications - [CIMA](https://investmentsandwealth.org/certifications/cima-certification) - [CPWA](https://investmentsandwealth.org/certifications/cpwa-certification) - [RMA](https://investmentsandwealth.org/certifications/rma-certification) - [Help Me Choose](https://investmentsandwealth.org/certifications/compare-iwi-certifications) - [Online Education](https://investmentsandwealth.org/online-learning-financial-advisor-ce) - [Conferences & Events](https://investmentsandwealth.org/financial-advisor-conferences-events) - [Experience 2026](https://experience.investmentsandwealth.org) - [Membership](https://investmentsandwealth.org/membership) - [Publications & Resources](https://content.investmentsandwealth.org/) - [Partner Solutions](https://investmentsandwealth.org/partner-and-sponsor) - [About](https://investmentsandwealth.org/about/mission-purpose-value) # Alternative Generations: Millennials, Gen Z, and Ever-Changing Markets Investments Communications Staff October 31, 2024 Contents In this article The financial landscape of American is in constant flux — and so too are the portfolio strategies and preferences of the generations that shape the markets with their characteristics, ideas, and decisions. Today, Millennials and Gen Z are establishing themselves as influential forces in the investment world, showing habits and interests that are distinct from their Baby Boomer and Gen X predecessors. While the latter groups grew up in an environment where stocks, bonds, and real estate were unquestioned mainstays, younger generations are more interested in alternative assets such as cryptocurrencies, private equity, non-fungible tokens, art, and collectibles. These differences in investor affinities may be partly rooted in the fact that Millennials and Gen Z are [far more likely to turn](https://www.fool.com/research/gen-z-millennial-investors-tools/) to social media platforms like YouTube, Instagram, and TikTok for investment advice. According to [one recent survey](https://rpc.cfainstitute.org/-/media/documents/article/industry-research/Gen_Z_and_Investing.pdf), 60% of Gen Z investors use YouTube as a primary source of investment information, while nearly 34% rely on TikTok for insights on market trends. Perhaps as a result, these generations tend to be skeptical of the ROI potential of traditional investments. In fact, survey data indicates that over [70% of investors aged 21-43](https://ustrustaem.fs.ml.com/content/dam/ust/articles/pdf/2024BoA-PB_Study_of_Wealthy_Americans.pdf) believe it is no longer possible to achieve above-average returns solely through stocks and bonds.   ![alternative-gen-tr](https://content.investmentsandwealth.org/hs-fs/hubfs/alternative-gen-tr.jpg?width=1440&height=900&name=alternative-gen-tr.jpg) Having grown up immersed in the internet, younger investors have an unprecedented “digital fluency” that enables them to respond swiftly to market changes, leveraging investment apps and robo-advisors that provide quick and easy access to a wide range of asset classes. Millennials, in particular, are known to use [multiple platforms](https://www.fool.com/research/gen-z-millennial-investors-tools/) for their investing activities, with a significant portion holding accounts with both traditional brokers like Fidelity and newer entities like Robinhood and Cash App. This allows them to balance traditional investments with more avant-garde opportunities, such as fractional shares, digital assets secured by blockchain (e.g. [tokenized real estate](https://chain.link/education-hub/tokenized-real-estate) or art), and peer-to-peer (P2P) loans. These options, easily available via a few clicks, provide a level of diversification that their predecessors simply did not have access to. Interestingly, Millennials and Gen Z seem to embrace alternatives as more than just a ROI strategy or sophisticated hedge against market volatility. Rather, alternatives are perceived as an opportunity for visceral engagement and a larger purpose in life. This distinction is critical for advisors to understand. Younger investors aren’t simply allocating capital — they’re connecting with assets in ways that are personalized, digital-first, and driven by a desire for both financial returns and meaningful, positive impact on the world they live in. ### For Millennials and Gen Z, Options Abound [According to a 2024 Bank of America study,](https://www.fastcompany.com/91141379/gen-z-millennial-investors-crypto-real-estate-private-equity-stocks-boa-private-bank) alternative investments and crypto comprise 31% of younger investors’ portfolios, compared to only 6% for older investors (who tend to view these assets as peripheral, higher-risk allocations). This difference not only suggests different risk appetites, but also highlights a deeper generational distinction, where younger investors see alternatives as central components of personal wealth-building, while older generations approach them with caution. Digital assets like Bitcoin and Ethereum have captured the imagination of younger generations partly because they offer a degree of transparency and decentralization not always found in traditional finance. These younger investors, seemingly comfortable with the volatility and excitement of purely digital markets, also view exposure to crypto as an opportunity to be part of a [global financial reckoning](https://www.cfr.org/backgrounder/crypto-question-bitcoin-digital-dollars-and-future-money), where the power of central banks and global financial epicenters like Wall Street are challenged. Beyond digital assets, Millennials and Gen Z are exploring private equity, with nearly [26% of Millennials](https://www.opalesque.com/industry-updates/7409/millennials-and-gen-z-allocate-three-times-more.html) surveyed in 2024 expressing interest in increasing their exposure, and 22% showing interest in direct investments, alongside real estate ventures. With the rise of [crowdfunding platforms](https://corporatefinanceinstitute.com/resources/wealth-management/private-equity-crowdfunding/) and fractional ownership models, these generations are participating in private market opportunities that were once possible only for institutional investors and ultra-high-net-worth individuals. Younger investors are also strongly drawn to tangible assets and collectibles as a way to diversify their portfolios. According [to the Bank of America study](https://ustrustaem.fs.ml.com/content/dam/ust/articles/pdf/2024BoA-PB_Study_of_Wealthy_Americans.pdf)[,](https://ustrustaem.fs.ml.com/content/dam/ust/articles/pdf/2024BoA-PB_Study_of_Wealthy_Americans.pdf) 94% of Gen Z and Millennials say they are interested in this asset class, which can include investments in a wide variety of items, including art, vintage cars, and luxury watches. ### Alternatives in Motion: Meeting the Needs of Millennial and Gen Z Investors While it may seem challenging to stay abreast of the multiplying forms of alternative investments, the good news is that there is still a strong demand for financial advice from younger investors, who perceive advisors as [accountability partners](https://clearingcustody.fidelity.com/app/literature/item/9907600.html) that can assist them with goal-setting and ongoing guidance. Younger clients want advisors who help them navigate life events like student debt, career changes, and attaining financial independence. Advisors who offer [behavioral coaching](https://education.investmentsandwealth.org/learn/course/external/view/elearning/631/applied-behavioral-finance-cfp-ce-approved) and are willing to connect clients with mental health or wellness resources may be especially effective in serving younger clients. As advisors prepare for sustained engagement with Millennial and Gen Z clients, it’s clear that strong familiarity with the alternative investment landscape will be critical. Advisors should work to distinguish themselves by continuing to develop a portfolio of expertise on the opportunities and risks associated with alternatives, including cryptocurrencies, [NFTs](https://en.wikipedia.org/wiki/Non-fungible_token), private equity, and real estate funds. To help advisors in this regard, the award-winning Investments & Wealth Academy, an online learning platform offering Ivy League-quality educational programs, features courses and programs such as the following: - [Bringing Clarity to Crypto: New Insights for the Modern Advisor](https://education.investmentsandwealth.org/learn/course/external/view/elearning/734/bringing-clarity-to-crypto-new-insights-for-the-modern-advisor) - [How Alternatives Can Help You Stand out from Your Competitors and Ways to Incorporate them into your Practice](https://education.investmentsandwealth.org/learn/course/external/view/elearning/706/how-alternatives-can-help-you-stand-out-from-your-competitors-and-ways-to-incorporate-them-into-your-practice) - [Private Markets for Advisors](https://education.investmentsandwealth.org/learn/course/external/view/elearning/623/private-markets-for-advisors-cfp-ce-approved) It is also critical to remember that Millennials and Gen Z highly value advisors who can integrate [online communication tools and maintain active online and social media presences](https://smartasset.com/advisor-resources/client-communication-tools-for-financial-advisors). Advisors who position themselves as highly responsive, tech-savvy, and sympathetic to the values and financial goals of younger generations will likely stand out from the crowd when it comes to earning client trust and loyalty. 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