Investors with access to an investment advisor can take inspiration from the asset allocation strategies used by college endowment funds to build more resilient, diversified portfolios. While individual investors may not have direct access to hedge funds or private equity, they can still diversify effectively across traditional and alternative investments. A sample approach might include 20–30% in public equities (via stock ETFs), 10–20% in fixed income (like bond ETFs), and the remaining 50–60% in alternative assets such as real estate investment trusts (REITs), commodities ETFs, and publicly traded private equity or infrastructure funds. This kind of diversified allocation can help reduce portfolio volatility, smooth out returns during market swings, and position investors for long-term growth—just like the endowments do.
