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While most any investor can access stocks, bonds, and exchange traded funds (ETFs), alternative investments—such as art, real estate, and venture capital (VC)—have typically been for high-net-worth investors. Yieldstreet brings these private-market alternatives to everyday investors, allowing them to gain access to a growing list of asset classes outside of the traditional stock and bond markets. While it does have drawbacks—including higher-than-average minimum investments and fees—depending on your financial situation, Yieldstreet may be a way to further diversify your portfolio.
For serious investors ready to step into the world of alternatives—but who haven’t quite met the requirements to become accredited—Yieldstreet offers a great lily pad. (And it’s also a solid platform for accredited investors looking to buy alternatives à la carte.)
However, with its high account minimums and fees, months-long money lockups, and higher-than-average risk potential, Yieldstreet isn’t among the best online brokers we’d recommend for beginners.
Yieldstreet works best for investors who:
Like any investment platform—and any financial product, for that matter—Yieldstreet has both benefits and drawbacks to consider.
Here’s what Yieldstreet’s got going for it:
Yieldstreet’s main appeal is its ability to grant access to alternative asset classes to everyday investors. With Yieldstreet’s one-stop-shop platform, investors can purchase interest in commercial real estate, artwork, venture capital investments, consumer loans, and more.
Yieldstreet allows investors to choose their assets by class, minimum, term, or strategy, with offerings listed by their potential to generate distribution income, appreciate during the selected term, or a balance of the two. Some assets are also eligible to be invested as part of an IRA portfolio, expanding investors’ retirement options.
The Securities and Exchange Commission (SEC) has rules that define which investors are accredited—and therefore eligible to trade in certain asset classes such as venture capital or private equity . In general, accredited investors must meet steep income and net worth thresholds and be sophisticated in that they understand what they are investing in and the risks involved.
Yieldstreet’s Prism Fund makes it possible even for non-accredited investors to access securities usually reserved for accredited investors. (However, investors must be accredited to invest in single asset class offerings, even on Yieldstreet.)
Yieldstreet’s online portal offers a user-friendly experience with enough guidance to help you find your way without getting in the way. Portfolio-management tools include a sample portfolio and simulator, private investment screener, and educational resources.
One of the main reasons investors are attracted to alternatives is their higher-than-average growth potential—and their resiliency during market turndowns. Yieldstreet’s platform allows investors to buy into these high-return-potential asset classes without the capital that would typically be required.
Here’s what potential Yieldstreet investors need to consider carefully.
While Yieldstreet provides non-accredited investors access to securities that might otherwise be out of reach, investment minimums begin at $10,000. This still may be too high for investors just getting their feet wet.
Along with high investment minimums, Yieldstreet has higher-than-average account management fees, which isn’t entirely unusual for more sophisticated investments than your typical ETF or mutual fund. Although the specifics depend on which offerings you choose, fees range from 1% to 4% annually. Additionally, there may also be annual flat fees related to specific investments.
Unlike traditional stock market investments, which can usually be sold and liquidated in a matter of hours, alternative investments may require investors to lock up their money for a time. Yieldstreet’s lockup terms start at three months.
Any type of investment is always subject to risk. But per Yieldstreet’s own fine print, “Investments in private placements are speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest.”
While this isn’t necessarily something that Yieldstreet itself could stand to improve, it’s a fact investors interested in alternatives should consider carefully before putting their money on the line with this platform—or any other.
While Yieldstreet has higher fees and minimums than many of other online brokers, it also offers asset classes most investors can’t access on other platforms. Its account type offerings are limited in scope, however. Additionally, Yieldstreet’s Better Business Bureau (BBB) ratings of 2.5 of 5 stars and Trustpilot customer ratings of 2.6 of 5 stars leave something to be desired. On the other hand, its four competitors don’t rank well, either, for the most part.
| Feature | Yieldstreet | Fundrise | SoFi Invest | Robinhood | Ally Invest |
|---|---|---|---|---|---|
Minimum investment | $10,000 | $10 | $5 | $1 | $0 |
Accounts offered | Alternatives brokerage, IRA | Individual, joint, entity, and trust alternatives brokerage accounts; IRAs | Individual and joint brokerage; traditional, Roth, and SEP IRAs | Cash and margin brokerage, cryptocurrency, traditional and Roth IRA | Individual and joint brokerage; custodial; traditional, Roth, and rollover IRA; Coverdell |
Available investments | Real estate, venture capital, private equity, private credit, short term notices, structured notes, diversified funds, transportation, art, legal finance | Real estate, private credit, venture capital | ETFs, stocks, cryptocurrency, IPOs, SPAC IPOs, margin trading | Stocks, ETFs, options, cryptocurrency, margin trading | Stocks, bonds, ETFs, mutual funds, options, low-priced securities |
Account and trading fees | Management fee of 1% to 4% annually; flat, per-investment expenses | Advisory fee of 0.15%; annual flat 0.85% management fee for real estate funds; annual flat 1.85% management fee for Innovation Fund; optional Fundrise Pro option at $10 per month or $99 per year | No investment-related fees aside from third-party regulatory and trading fees | No fees aside from third-party regulatory and trading fees | Advisory fee of 0.85% or less; $1 per bond, $4.95 per low-priced security, $0.50 per contract fee for options, |
Customer service ratings/Trustpilot/BBB | 2.5/5 stars (T); 2.6 /5 stars (BBB) | 1.8/5 stars (T); 3.5/5 stars (BBB) | 4.7/5 stars (T); 1.68/5 stars (BBB) | 1.3/5 stars (T); 1.08/5 stars (BBB) | 1.2/5 stars (T); 1/5 stars (BBB) |
Let’s take a closer look at Yieldstreet’s offers and features.
Yieldstreet’s interface has enough integrated tools and educational options to make the planning and trading process transparent and enjoyable. The onboarding process is also quick and easy, and the platform is available online, as well as on both Android and Apple devices.
Yieldstreet shines for its alternative investment options, which are seldom available to non-accredited, everyday investors. While Yieldstreet’s platform does not allow you to trade in stocks, bonds, ETFs, and mutual funds, investors can choose from a range of alternatives including art, real estate, venture capital, private equity and debt, and more—all without needing the hefty capital generally required by these sorts of investments.
Yieldstreet’s technology is clean and easy to use and its platform is available for mobile devices as well as web interfaces. Its integrated tools, like the sample portfolio and simulator and private investment screener, empower investors with the information they need to make informed choices.
As mentioned, Yieldstreet’s services come at a higher cost than many other online brokers’, though this makes sense given the types of assets Yieldstreet investors are able to access. Still, management fees of up to 4% could cut considerably into investment returns, especially given the risk level of alternative asset classes.
Since Yieldstreet offers alternative investment options that may be more obscure to lay investors—after all, they’re not usually available to them—educational resources are even more critical for the platform. Fortunately, it offers a range of educational insights to help investors find their way, with an online blog platform populated by hundreds of articles.
Even among the best online brokers, customer service tends to be a sticking point. But Yieldstreet does offer a variety of ways to get in touch, including phone, text, and email customer support. It has received somewhat lackluster reviews on both Trustpilot and the Better Business Bureau.
While Yieldstreet doesn’t have any ready-made features to integrate with social media as far as TIME can tell, it does support well-reviewed applications on both Android and Apple devices.
Yieldstreet enacts a number of measures to ensure customer security and the reliability of their platform, including mandatory two-factor authentication, data encryption technology, and redundant infrastructure. The company is digiCert certified as a secure site for sending and receiving sensitive information.
Yieldstreet was founded in 2015. In September 2023, Yieldstreet agreed to pay $1.9 million to settle SEC charges for “failing to disclose critical information to investors in a $14.5 million asset-backed securities offering.” In agreeing to settle, Yieldstreet did not admit or deny the SEC's findings.
Yieldstreet makes money by charging listing fees to the parties originating investment offerings for investors, as well as through its account management fees on the investor side.
Yieldstreet is primarily an investment platform focused on alternative investments. It does not provide banking or other financial services.
While it comes with its own array of risks and drawbacks, Yieldstreet makes alternative investment classes—which might otherwise be out of reach for the everyday investor—accessible. However, its high account minimums and associated fees may still knock some new investors out of the running, and those who want to invest in single-asset class offerings will still need to be accredited investors.
Every type of investment involves risk, and Yieldstreet’s offering of alternatives is no exception. According to Yieldstreet, alternatives have been shown to outperform traditional investments in terms of growth and to withstand market volatility (as in the Great Recession of 2008 and during the height of the Covid-19 pandemic). However, alternatives are also known to be riskier than traditional asset classes such as stocks and bonds, and have the added detriment of less liquidity. Per Yieldstreet’s own fine print, “those investors who cannot afford to lose their entire investment should not invest.”
According to Yieldstreet, its net annualized return is 9.6%, with specific returns varying depending on the type of investment. (Its legal finance asset class, for example, has a net annualized return of more than 13%.)
Both Fundrise and Yieldstreet allow everyday investors to buy into alternative investments like real estate, venture capital, and private credit. But the platforms have substantial differences. While Yieldstreet offers more diverse asset classes, it also comes with substantially higher minimum investments than Fundrise. Fundrise members can get started with as little as $10 for a taxable brokerage account, whereas Yieldstreet investors will need at least $10,000.
No one can accurately predict an investor’s specific returns, especially in the more highly volatile world of alternatives. However, according to Yieldstreet, its investor members have seen some $2.3 billion in returns, with more than $4 billion invested collectively. Its most popular asset classes include real estate and short term notes, though its legal class boasts the highest net annualized return.
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