How to Invest in Wine

Wine investing may appeal to investors seeking exposure to alternative asset classes. Owning wine as an investment may add diversification to a portfolio, since it has historically had a lower correlation with traditional market assets. As such, it may act as an inflationary hedge and a buffer against market volatility.

Investing in a tangible asset like wine can come with high risks, but wine has the potential to offer returns over time. Online platforms have made it easier to invest in wine, though some investors may prefer to build a physical collection of their own. There are pros and cons to both approaches to investing in wine.

The Rise of Wine as an Alternative Investment

Wine holds some attraction for investors, and it’s gained popularity as an alternative investment in recent years. According to annual reports, the Liv-Ex Fine Wine 100 and Liv-Ex Italy 100 indexes grew about 34% and 61%, respectively, during the 10 years ending in the fourth quarter of 2025. Over the same period, the Liv-Ex Burgundy 150 grew 106%.

Past performance is no guarantee of future results, and there was also considerable volatility within that time span. Some fine wines demonstrated losses in the past decade. However, fine wines are attracting some investors looking to diversify.

Technology has also reshaped the wine investing landscape. Investors are no longer limited to setting up their own wine cellar, as online platforms offer access to diversified portfolios of fine wines and premium whiskeys. The barrier to entry can be lower in some cases, making wine a more accessible investment overall.

In addition, investing in wine is an opportunity to explore your passions. If you consider yourself a wine connoisseur, holding wine as an investment could be a natural fit. As with any type of investment, it helps to be engaged in the assets you own.

Is Wine a Good Investment Option?

Wine offers some unique possible advantages for investors who are interested in adding something different to their portfolio. Historically, broad market benchmarks of investment-grade wine have returned an average compound annual growth rate of 7%-8%. As a point of comparison, since its inception, the S&P 500 has delivered historical returns of about 10% annually (not taking inflation into account), though illiquid assets like wine can come with different risk factors and tax treatment than stocks. For example, wines can’t necessarily be sold to a buyer for their market value.

To better track the wine market, investors may want to become familiar with benchmarks such as the London International Vintners Exchange (aka, the Liv-ex). Similar to how the S&P 500 index is the benchmark for U.S. equities, the Liv-ex tracks the international wine market.

While it’s possible to debate whether wine should be considered a commodity vs. a security, there’s no question that many investors turn to wine as an investment. Some of the reasons investors find it to be an attractive option include:

•   Investing in wine may offer portfolio diversification due to its historically lower correlation to stocks, bonds, and other traditional asset classes.

•   Like real estate and other alternatives, wine may be less susceptible to disruptions in the market that may result in increased short-term volatility, though it can still be impacted by broader economic or consumer trends.

•   Wine investments may remain relatively steady during periods of rising inflation or market downturns, including recessionary periods.

•   Some investors may hold wines alongside more traditional assets with the goal of managing overall risk in a portfolio.

Risks and Considerations of Wine Investing

Before exploring wine investments, it’s helpful to consider the potential risks. For example:

•   Wine may require a sizable initial investment if you’re purchasing individual bottles or buying into a private placement wine fund.

•   Similar to the risks of investing in art, transporting and insuring physical wine collections can be expensive, and you face the risk of bottles being damaged or spoiled.

•   Wine generally requires a longer holding period than other investments, which may not be ideal if you don’t want to be locked in for a certain time frame.

•   Wine investment requires thorough due diligence to ensure that you’re working with a reputable platform, auction house, exchange, or private seller.

•   Supply and demand, weather and climate conditions, and geopolitical events can all influence the value of fine wines.

Lastly, remember that nothing is guaranteed with wine or any other alternative asset class, such as gold or real estate. While it’s certainly possible to generate substantial returns through wine investments, it can be just as easy to lose money.

Building a Portfolio

There are several ways to build a portfolio that includes wine investments. Your options for investing in wine include:

•   Purchasing physical bottles of wine

•   Investing in wine funds

•   Buying wine stocks

•   Investing in wine futures

The first step in building a wine portfolio is deciding which investment option makes the most sense.

Buying Fine Wine

Owning physical wine assets can be time-consuming and expensive, as you’ll need to research the wines you want to buy, arrange for their purchase and delivery, and ensure they’re stored appropriately to prevent spoilage. You may need to insure the wine you buy.

If you’re interested in collecting wines, you may use online or in-person auctions or wine exchanges to seek out your preferred vintages.

Wine Funds and Wine Stocks

Investing in wine funds may be more appealing if you don’t want the burden of maintaining a physical collection or if you want exposure to a diversified mix of wines. Investors can trade mutual funds or exchange-traded funds (ETFs) that include alcohol-producing companies, as well as companies in the wine sector.

It’s also possible to buy individual shares of stock in wineries and wine companies. Getting to know the wine industry, various technologies, and the relevance of different companies and products is key, as it would be when investing in any type of stock.

Wine Investing Platforms

Private placements are another option. Wine investing platforms allow access to actively managed portfolios of fine wines and premium spirits through private placement. One thing to note is that you may need to be an accredited investor to pursue private wine investments. The Securities and Exchange Commission (SEC) defines accredited investors as individuals who have one of the following:

•   Net worth exceeding $1 million (not including their primary residence), OR

•   Income over $200,000 individually ($300,000 for married couples) in each of the two prior years, with a reasonable expectation of the same income in future years, OR

•   A valid Series 7, Series 65, or Series 82 securities license

Wine Futures

If you’re comfortable with speculative investments, you might consider investing in wine futures. Similar to investing in commodities futures, this strategy involves investing in wines before they’re bottled. You can purchase specific vintages via futures contracts before they’re released, which may allow a competitive edge in the market if those vintages are highly sought after upon release.

As with commodities futures, there can be substantial risks to this strategy. Futures are derivative investments, meaning their value is determined by the price of the underlying asset, i.e., the wine you’re agreeing to trade. And outcomes rely largely on investors making correct assumptions about which commodity prices will move. It’s possible to lose money on futures contracts if you’re expecting prices to increase but they decline instead.

Managing a Wine Investment Portfolio

How you manage wine investments can depend largely on how you own them. If you’re collecting physical bottles, for instance, then your primary considerations include:

•   Storage

•   Transport, if you need to move your collection or are ready to sell at auction

•   Timing and when it makes sense to sell, once a wine matures

•   Wine insurance to protect your investment against losses stemming from theft, damage, and other covered perils

With wine funds and stocks, you’ll need to consider diversification and what you’re gaining exposure to as well as the overall cost of owning those investments. It’s also important to look at the minimum investment required, as well as the holding period where wine funds are concerned. Wine typically requires longer holding periods than stocks or bonds, and you need to be comfortable with how long you may have to wait to sell your investment.

How much of your portfolio should you dedicate to wine investments? The answer can depend on how much money you have to invest, the degree of risk you’re comfortable with, and your goals for investing in wine. There’s no fixed rule of thumb for deciding how much of a portfolio to invest in alternatives. For some investors, 5% is more than enough, while others may be comfortable with 10% or more.

Reviewing the entirety of your portfolio, your time horizon for investing, and your goals can give you a better idea of how much to invest in wine.

Recommended: Gold IRAs Explained

The Takeaway

Investing in wine can be one way to add diversification to your portfolio, especially since it often performs differently than traditional stocks and bonds. However, it requires careful research, a long-term mindset, and a clear understanding of the risks, such as market volatility and shifting demand, illiquidity, the possibility of counterfeiting, and ongoing storage costs that could eat into potential profits. Whether you decide to build a physical collection or use an online platform, wine is generally just one piece of a larger, well-planned strategy that aligns with your personal financial goals and risk tolerance.

Ready to expand your portfolio's growth potential? Alternative investments, traditionally available to high-net-worth individuals, are accessible to everyday investors on SoFi's easy-to-use platform. Investments in commodities, real estate, venture capital, and more are now within reach. Alternative investments can be high risk, so it's important to consider your portfolio goals and risk tolerance to determine if they're right for you.

Invest in alts to take your portfolio beyond stocks and bonds.

FAQ

What factors make wine a viable alternative investment?

Wine is considered an alternative investment thanks to its historically low correlation with traditional asset classes, such as stocks and bonds. Wine investments have the potential to act as an inflationary hedge and provide some protection against market volatility, though there are no guarantees. It’s also an opportunity to invest in something you’re passionate about if collecting or enjoying wine is one of your hobbies.

What are the potential risks of investing in fine wines?

The main risks associated with wine investing center on changing valuations, buyer trends, and the potential for damage or spoilage of physical wine collections. Changing supply and demand or poor weather can influence wine prices, while maintaining a wine inventory has its risks. If you plan to own wines, it’s wise to purchase wine insurance to protect your investment.

How can investors build and manage a diversified wine portfolio?

Building a diversified wine portfolio begins with deciding how you’d prefer to own wines. Physical ownership has its pros and cons, and some investors may choose to invest in alt funds, wine stocks, or wine futures instead. Managing your wine investments requires regular review of performance and asset allocation to ensure that you’re maintaining a diversified mix that aligns with your risk tolerance.

---

Photo credit: iStock/arismart

This content is for educational and informational purposes only. The products, services, or features discussed may not currently be available via the SoFi platform. Any references to third-party products, services, or companies do not constitute an endorsement, recommendation, or solicitation by SoFi. Readers should independently evaluate their options and consider their individual financial needs and circumstances before making any decisions. ©2026 SoFi Technologies, Inc. All rights reserved.
Mutual Funds (MFs): Investors should read and carefully consider the information contained in the prospectus, which contains the Mutual Fund’s investment objectives, risks, charges, expenses, and other relevant information. You may obtain a prospectus from the Fund company’s website or SoFi's customer service at: 1.855.456.7634. Mutual Funds must be bought and sold at NAV (Net Asset Value); unless otherwise noted in the prospectus, trades are only done once per day after the markets close. Investment returns are subject to risks. Shares may be worth more or less their original value when redeemed. The diversification of a mutual fund will not protect against loss. A mutual fund may not achieve its stated investment objective. Rebalancing and other activities within the fund may have tax implications.
Exchange Traded Funds (ETFs): Before investing in Exchange Traded Funds (ETF), always read the fund's prospectus. It contains important information about the fund’s objectives, risks, and fees. You can get a prospectus from the fund company’s website or by emailing our customer service at [email protected].
S&P 500 Index: The S&P 500 Index is a market-capitalization-weighted index of 500 leading publicly traded companies in the U.S. It is not an investment product, but a measure of U.S. equity performance. Historical performance of the S&P 500 Index does not guarantee similar results in the future. The historical return of the S&P 500 Index shown does not include the reinvestment of dividends or account for investment fees, expenses, or taxes, which would reduce actual returns. Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

SOIN-Q126-121