Vint Review – Breaking Down the Barriers of Fine Wine Investing
Most people think about stocks, bonds, and real estate when they think about investing. However, there are plenty more asset classes to dive into, many of which may catch you by surprise.
One such alternative investment is fine wine, a type of collectible that can offer attractive returns and improve portfolio diversification.
The term “better with age” is derived from the fact that the quality of certain wines improves with age. Wine investors tap into this improving quality and potential profitability by purchasing and properly storing expensive bottles of this liquid gold. However, the cost is often a barrier to entry, considering that investable collections can cost tens or even hundreds of thousands of dollars.
That’s where Vint comes in.
Key Features of Vint
Vint is a startup aimed at breaking down barriers for everyday wine investors by offering securitized and regulated shares of high-end collections.
The Vint wine investing platform isn’t crowded with features you don’t need, and everything you might need seems to be right where it should. These are the platform’s most important features:
SEC-Regulated Shares of High-Quality Wines
Regulation is an important aspect of investing. A lack of regulation has contributed to numerous market bubbles, scams, and losses over the years. Events like the stock market crash that preceded the Great Depression might not have occurred in a better-regulated market.
While no legal authority regulates wine investments, Vint has found a way to bring regulation into the fray.
The company securitizes its wine collections by registering them as investment assets and selling shares of each collection. The United States Securities and Exchange Commission (SEC) is charged with the regulation of securities in the United States, so Vint’s securitized wine collections are effectively regulated by the SEC.
In registering its wine securities with the SEC, Vint must provide you with all the information you need to make an educated investment.
At first glance, the Vint platform seems pretty basic. But as you start to use it, you’ll likely develop an appreciation for its straightforward structure. Vint doesn’t have any unnecessary bells and whistles that take up space — just what you need strategically positioned where you need it.
This simplistic approach creates a user-friendly experience and a platform with a minimal learning curve, if any.
Easy Access to High-End Wine Investments
Historically, wine investing has been possible only for wealthy people with the time and resources to travel to wineries in Napa Valley, Tuscany, or Bordeaux in search of deals on high-quality wine collections. The advent of the Internet removed the travel requirement from the equation, but two major barriers to entry remained before Vint:
Vint offers solutions to both of these problems:
Collections Constructed by the Professionals
Investment-grade wine isn’t just a recreational alcoholic beverage that you sip with colleagues, friends, and loved ones from time to time. High-end wines are akin to fine art. Even the most subtle flavor notes can mean the difference between a high-quality, $10,000 bottle of the beverage and a $7.99 boxed wine special.
Even if you’re a sommelier or you have an affinity for fine wine, it will take daunting research to determine the best investments in the space.
Vint takes that work out of your hands.
The company employs a team of professionals in the wine industry to curate and construct collections of significant value. When you purchase shares of one of the company’s collections, you can rest assured that the collections you’re purchasing are of the highest quality.
Vint does charge a sourcing fee ranging from 6% to 8% for its curation services. However, it’s also so confident in its investment choices that it buys shares of each collection for its own holdings — up to 10% of the total collection’s value.
There are currently two collections available, including:
Alternative investments aren’t as liquid at traditional investments like stocks and ETFs. When it comes to Vint, your investments will be mid to long-term.
The company’s aim is to sell all shares of a collection and sell the collection when the market’s right, generally within two to seven years. Once the collection sells, shareholders receive their portion of the proceeds. However, there is no secondary market on which you’ll be able to sell your shares if you need access to your funds quickly.
If you’re like most people, your knowledge of investing in fine wine is limited. However, as with any other investment, your knowledge of the industry will play a significant role in your success as an investor.
Vint understands the importance of educated investments, so it takes an extra step to ensure that its investors know what they’re doing when making investments.
Vint offers a free educational guide to investing in wine that even some professionals may be able to learn a thing or two from. You don’t even have to be a member of the site to access the guide either — it’s available right on the company’s home page. Just type in your email and you’ll receive your copy.
Advantages of Vint
There are several major advantages to investing in wine with Vint. Some of the biggest include:
Disadvantages of Vint
While there are plenty of reasons to consider investing with Vint, there are also some drawbacks that should be considered before diving in. The most important disadvantages to note include:
How Vint Stacks Up
Vint’s biggest competitor is VinoVest. Here’s how the two compare to one another:
|Annual Fee||None||2.85% on balances below $10,0002.7% on balances between $10,000 and $49,999.99 2.5% on balances between $50,000 and $249,999.99 2.25% on $250,000+ balances|
|Portfolios||Investors choose from professionally curated collections||A personal wine investment professional builds your portfolio|
|Minimum Investment||$25 minimum investment||$1,000 minimum investment|
Vint is a compelling option for investors who are interested in diversifying their holdings with alternative investments. Wine has a strong track record for generating solid gains over time, and prices in the market tend to be more stable than stocks.
However, while wine investment returns may outpace market returns from time to time, liquidity issues could impact your ability to tap into your earnings at will. The bottom line is that wine is a great diversification tool, but it’s not a substitute for a well-balanced investment portfolio that also includes stocks, bonds, and investment-grade funds.Editorial Note: The editorial content on this page is not provided by any bank, credit card issuer, airline, or hotel chain, and has not been reviewed, approved, or otherwise endorsed by any of these entities. Opinions expressed here are the author's alone, not those of the bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved, or otherwise endorsed by any of these entities.