The lottery is still a single asset (even if it is backed by a diversified portfolio). When we are talking about hundreds of millions of dollars, I would be wil

The lottery is still a single asset (even if it is backed by a diversified portfolio). When we are talking about hundreds of millions of dollars, I would be willing to pay a premium to hold that money in a more diverse way. This is the same reason I prefer 401ks to pensions (and our government has not demonstrated an ability to start with a fixed fund and not raid it for unrelated purposes) For your threat model question, I would be much more concerned about the state raiding the lotto fund to pay for, say, their pension obligationd than I am about them retroactivly banning lotto winnings on moral grounds. It is much harder for the state to steal from investments it doesnt control.