In the modern age of investing, investors are constantly on the lookout for diverse opportunities outside of the stock market. Two platforms, Masterworks and Yieldstreet, have emerged as significant players in the world of alternative investments.
But which one should you choose for your hard-earned money? This detailed comparison between the two aims to help you make an informed decision.
| Masterworks is Better for: | Yieldstreet is Better for: |
| Ideal for art investors seeking fractional ownership of famous paintings. | Best for diversifying into multiple alternative asset classes. |
| Perfect for individuals wanting to diversify with blue-chip art. | Tailored for those interested in real estate and venture capital funds. |
| Suitable for both accredited and non-accredited investors. | Apt for investors looking for quarterly payments. |
| Provides direct access to the world of art investment. | Offers non-liquid assets for long-term investment prospects. |
Introducing the Platforms
Masterworks
Masterworks emerges as a pioneer in enabling individual investors to invest in world-class art. This platform lets art enthusiasts and investors alike acquire shares of ownership in iconic pieces of art. Through fractional ownership, Masterworks breaks the barrier between ordinary investors and the often exclusive world of art investment.
For a closer look at Masterworks, check out our full review of the platform.
Yieldstreet
Yieldstreet offers a real estate investment platform that provides retail investors access to various alternative asset classes. From real estate properties to venture capital funds, it caters to a wide range of investment desires. By opening doors to such non-traditional assets, Yieldstreet empowers its users to diversify their portfolios beyond public markets.
If you are seeking additional info about Yieldstreet, we have a dedicated review of the platform.
| Masterworks | Yieldstreet | |
| Type of Service | Art Investment Platform | Alternative Investment Platform |
| Best Use | Art Fractional Ownership | Real Estate and Venture Capital Investments |
| Customer Support | Responsive Email & Chat | Email, Chat, Phone |
| Current Promotion | MORE INFO | MORE INFO |
| Investor Type | Beginners to Professionals | More Experienced Investors |
| ModestMoney Overall Rating | 4.5/5 | 4.25/5 |
Factor 1: Investment Diversity
Yieldstreet provides various alternative asset class investments
- Masterworks specializes in art investment opportunities.
- Yieldstreet takes the lead in terms of diversified investment options.
With Masterworks, investors can venture into the world of art, a unique alternative asset class. By allowing fractional ownership of famous paintings, Masterworks makes high-end art accessible to average investors, breaking down traditional barriers.
Yieldstreet shines when it comes to a wide range of alternative investments. From real estate assets to venture capital, it caters to varied investor preferences. For those seeking a diversified portfolio beyond just art, Yieldstreet becomes a solid choice.
Factor 2: Accessibility for Different Types of Investors
Masterworks caters to both accredited and non-accredited investors
- Yieldstreet primarily targets accredited investors with higher income brackets.
- Masterworks is preferred due to its wider accessibility.
One of Masterworks’ most commendable features is its inclusivity. The platform doesn’t just cater to the elite or those with vast financial resources; it’s tailored for all types of investors, be it accredited or non-accredited. This democratization of art investment ensures that even individuals with moderate annual income can have a piece of the lucrative art pie.
While Yieldstreet offers intriguing investment opportunities, there’s a caveat: it leans more towards accredited investors. These are individuals who either have a net worth of over $1 million, excluding the value of their primary residence, or have had an annual income of at least $200,000 for the last two years. This exclusivity might leave out many potential investors.
Factor 3: Rate of Return and Potential Profits
Art indexes and historical return data showcase Masterworks’ substantial profit potential
- Yieldstreet also boasts impressive annual returns with some of its assets.
- Masterworks takes the edge due to art’s unique appreciation value over time.
Investing in art isn’t just about passion; it’s also about profits. Historical return data on blue-chip art has consistently outperformed stock market indexes. With Masterworks, investors can tap into this potential, as they focus on acquiring artworks that have a proven track record of appreciation, making it a potential goldmine for long-term investors.
Yieldstreet’s alternative assets, especially real estate properties, and venture capital funds, have shown promise with commendable annual returns. The platform’s diverse offerings mean investors can select assets that align with their financial goals. However, the appreciation rate might not be as consistent as art investments.
Factor 4: Minimum Investment and Fees
Masterworks allows for lower initial investments in art pieces
- Yieldstreet’s investment minimums can be higher, depending on the asset.
- Masterworks is the more accessible platform when considering the entry barrier.
Breaking down the barriers of the art world doesn’t just stop at democratizing access; it extends to the cost as well. Masterworks offers lower initial investments, allowing more investors to enter the art market. Furthermore, their transparent fee structure ensures that investors are well-informed about any associated costs.
On the other hand, Yieldstreet’s minimum investment varies with the asset class, and in some cases, it can be considerably high. While this might be justifiable given the potential returns, it does pose a higher entry barrier for many investors. The platform also has associated management fees that investors should be wary of.
Factor 5: User Experience and Platform Usability
Masterworks boasts an intuitive online platform designed for ease of use
- Yieldstreet also offers a user-friendly experience but falls slightly short in comparison.
- Masterworks takes the lead with its specialized, art-focused platform.
Masterworks has meticulously crafted its platform to cater to both art enthusiasts and novice investors. With an intuitive interface, users can easily browse available artworks, access detailed art indexes, and make informed investment decisions. Their platform not only educates but also immerses the user in the world of art.
Yieldstreet’s platform is user-friendly, offering direct access to various alternative investments. However, being a multi-asset platform, it doesn’t provide the specialized experience that Masterworks offers for art. While it does a commendable job in its domain, when juxtaposed with Masterworks’ specialized focus, it’s a tad less immersive.
The Verdict
The battle between Masterworks and Yieldstreet boils down to specific investment goals and objectives. Yieldstreet provides a broader spectrum of alternative assets, but when it comes to art investment, Masterworks stands unrivaled.
Masterworks has democratized the art investment sector, allowing both accredited and non-accredited investors to tap into the lucrative world of blue-chip art. Their platform is beginner-friendly, offering a unique investing experience that’s hard to find elsewhere. Plus, with their focus on iconic pieces, the potential returns and long-term appreciation are substantial.
Yieldstreet, while commendable for its diverse offerings, doesn’t possess the same niche focus and expertise that Masterworks does in the art sector. Hence, for those looking to step into the world of art investment, Masterworks emerges as the clear winner.
Ready to embark on your art investment journey? Click here to dive into Masterworks and explore the world of blue-chip art like never before. It’s not just an investment; it’s an experience.