Fractional investing’s popularity surged post-March 2024 as fractional positions allowed cautious entry into volatile crypto-linked equities. Platforms report volume spikes in Coinbase and MicroStrategy fractional purchases, with volatility metrics advising tight stop-loss strategies. There are two main types of REITs: equity and mortgage. An equity REIT owns buildings, while mortgage REITs provide financing for real estate and invest in mortgage-backed securities. When you buy shares of a publicly traded REIT , you’re investing in a portfolio of income-generating assets like shopping centers, apartments or offices. These are just a few examples of investor types who might benefit from investing in fractional shares. Again, if there’s any reason why you might need less than a full share for one or several financial instruments, it’s better to have that flexibility than not. Fractional investing enables portfolio diversification with minimal capital, a strategy gaining favor among Gen Z investors. The S&P 500 climbed 2.4% in early June 2024, and fractional trades in energy ETFs increased 21%, suggesting broader sector rotation trends.
