EDWARD JONES BETS BIG ON ALTERNATIVE INVESTMENTS — WHAT CANADIAN INVESTORS SHOULD WATCH

In an increasingly volatile investment landscape, traditional stock and bond portfolios are losing their appeal among high-net-worth investors.

Edward Jones, a North American financial services firm with more than 20,000 advisors and over US$2.2 trillion in assets under care, has joined a growing wave of institutions expanding access to alternative investments — and Canadian investors should take note.

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Why this matters to Canadians

While Edward Jones is based in the U.S., it operates extensively in Canada. For Canadian investors with Edward Jones accounts — or those curious about alternative assets — this move reflects a broader shift in wealth management. Rather than focus on traditional assets, like equities and fixed income, even the larger investment firms are now pivoting toward private market opportunities as a way to manage risk, reduce correlation with public markets, and potentially boost returns.

If you’re invested through Canadian ETFs, mutual funds, or managed accounts with exposure to private equity, real estate, or credit, you may already be benefiting from this shift — or you may be missing out.

What’s new at Edward Jones

As of May 5, 2025, Edward Jones launched Edward Jones Generations, its first private client service targeting households with US$10 million or more in investable assets. This elite-tier offering includes:

• Access to alternative investments in private equity, credit, and real estate.
• A platform powered by CAIS, a fintech leader in advisor-accessible alts.
• Integration with the firm’s Advisory Solutions Unified Managed Account (UMA) platform.
• Advanced financial planning services, including tax, estate, trust, and philanthropic strategies.

For now, these offerings are limited to ultra-high-net-worth clients in the U.S., but Edward Jones has stated plans to broaden the product lineup and eligibility over time — which could include Canadian clients.

Read more: Here are 5 expenses that Canadians (almost) always overpay for — and very quickly regret. How many are hurting you?

The rise of alternatives — and the risks

Demand for alternative investments has surged in recent years as institutions like Blackstone and Apollo democratized access for retail and mass-affluent investors. These investments — typically in non-public assets — include:

• Private equity funds
• Non-traded REITs
• Business development companies (BDCs)
• Private credit/debt vehicles

For many investors, the question is: Why now?

Kevin Gannon, CEO of Robert A. Stanger & Co. answered this question in an inverview with Investment News: “There’s a big pull to alternative investments right now because of the volatility of the stock market."

But this move into alternative investments comes with trade-offs. Most assets in the alternative investments bucket are illiquid, less transparent, and suited only for investors who can handle higher risk or longer holding periods.

Canadian investor takeaway

Even if you don’t have $10 million, Edward Jones’ move signals a mainstreaming of private market access. Here's what you can do:

✅ Review your portfolio for existing alternative exposure in mutual funds or ETFs (e.g. via real estate or infrastructure funds). ✅ Ask your advisor whether private market or non-correlated strategies make sense for your goals. ✅ Understand liquidity constraints — most alternatives are not suitable for emergency funds or short-term needs. ✅ Watch for Canadian access: As platforms like CAIS expand, similar offerings may soon be available to accredited Canadian investors and, eventually, mainstreet investors.

Bottom line

Edward Jones’ new strategy is part of a larger trend that’s reshaping modern portfolio construction. For Canadian investors — especially those with complex financial needs or significant wealth — the rise of alternatives may offer valuable diversification, but only if aligned with your risk tolerance and financial plan.

Sources

1. Investment News: Edward Jones joins the crowd to sell more alternative investments (April 29, 2025)

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

2025-07-03T15:08:25Z