Sure, the stock market has surged to new highs in 2025. But at times this year, the CBOE Volatility Index (VIX) has also more than tripled.
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If you fear a frothy or volatile stock market looming on the horizon, consider these five alternative investments to build wealth.
Private Equity Real Estate
- Typical targeted returns: 14% to 20%
For living memory, private equity real estate has been an exclusive playground for the rich. The SEC makes it difficult for operators to allow non-accredited investors, and the accounting headaches force operators to require a high minimum investment ($50,000 to $100,000).
Today however, co-investing clubs let members go in on these together with as little as $5,000. Investors get all the upsides of owning real estate — cash flow, appreciation, tax benefits — with none of the headaches of becoming a landlord.
These passive investments could include apartment complexes, mobile home parks, industrial properties, retail or office buildings. Real estate investor Jacob Naig of WeBuyHousesInDesMoines sees these projects overperform all the time.
“A colleague of mine converted a sparsely occupied office building into micro apartments, and while fellow office owners flailed, he leased his units in months,” Naig said.
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Rental Properties
- Typical targeted returns: 8% to 12%
Investors who don’t mind taking on a side hustle can buy properties directly instead.
“I owned duplexes that maintained steady cash flow both during the 2008 crisis and in the pandemic,” adds Naig. “The trick is to buy properties that cash flow well even after budgeting for irregular expenses like vacancies, repairs and maintenance.”
Private Debt
- Typical targeted returns: 6% to 10%
As an indirect real estate investment, you can also fund notes (loans) secured by real estate. Amanda Orson helps clients invest flexibly in real estate through her company Galleon.
“Notes deliver monthly payments, often yielding mid- to high-single-digit returns. And unlike stocks, where value can evaporate overnight, notes are grounded in tangible collateral,” Orson said.
For a reputable secured note fund, check out 7e Investments. The fund pays steady 8% to 10% returns based on how much you invest, and has done so since inception.
Oil and Gas Production
- Typical targeted returns: 10% to 20%
Rather than investing in an energy company’s stock, you could buy fractional ownership in actual oil wells.
These wells pay out for their lifespan, typically with a high flow at first before tapering off. Reputable oil and gas investment groups include King Operating and Pecos Valley Partners.
Precious Metals
- Typical targeted returns: N/A
Many investors view gold and silver as defensive hedges against stock market volatility, geopolitical strife and currency debasement.
Still, metals can deliver enormous returns during those periods. Over the last year, the price of gold has skyrocketed 39.5% according to GoldPrice.org. Investors who worry about volatility might set aside 5% to 10% of their portfolio for metals to help hedge against risk.
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This article originally appeared on GOBankingRates.com: 5 Investments That Aren’t Stocks To Build Wealth in a Volatile Market
