Robo Advisors are online, automated portfolio management services.
These companies use computer algorithms — a set of rules to choose appropriate investments based on your risk tolerance and time horizon — so that they can offer their services for a fraction of the cost of a human financial advisor.
That lower-cost management, combined with features like automatic portfolio rebalancing and tax-loss harvesting, can translate into higher net returns for investors.
A Robo Advisor is a good fit for you if you prefer to be largely hands-off with your investments — letting someone else do the work of building and optimizing your portfolio — and you don’t have the kind of complex financial situation that requires a direct relationship with a human financial advisor.
|Bonus: SavingExpert readers will get an extra $50 just for signing up and depositing $100 or more!|
What is Wealthsimple?
They use low-cost index fees and smart technology to keep your investment costs low.
Instead of trying to beat the market they invest in the market as a whole.
This diversification allows you to avoid putting all your eggs into one stock and can smooth out your returns and minimize your losses.
A lot of people try to time the market and end up losing a lot of money.
Wealthsimple makes investing easy.
Wealthsimple Asset Classes
A well-balanced portfolio is crucial for building wealth and limiting risk. Each of Wealthsimple’s portfolios includes between 8 and 10 ETFs and each ETF represents a unique asset class:
|US Stocks||VTI||Vanguard Total US Market ETF||All|
|US Mid-Cap Value||VOE||Vanguard Mid-Cap Value ETF||All|
|US Small-Cap Value||VBR||Vanguard Small-Cap Value ETF||All|
|Foreign Stocks||VGK||Vanguard FTSE Europe ETF||All|
|Foreign Stocks (exporter & dividend tilt)||DXJ||WisdomTree Japan Hedged Equity Fund||All|
|Emerging Market Stocks||VWO||Vanguard FTSE Emerging Markets ETF||All|
|Municipal Bonds||MUB||iShares National Muni Bond ETF*||All|
|US Inflation Protected Bonds||TIP||iShares TIPS Bond||Conservative, Balanced|
|USD Govt and Corporate IG Bonds (includes EM)||BND||Vanguard Total Bond Market ETF||All|
|High Yield Bonds||ANGL||VanEck Vectors Fallen Angel High Yield Bond ETF||Conservative, Balanced|
Is Wealthsimple Safe?
Wealthsimple keeps your money safe:
- 100,000 clients trust us to manage more than $2 billion.
- State-of-the-art security, up to $500,000 SIPC protected.
- Webby Award winner for world’s best financial website.
Wealthsimple has no account minimum, which should undoubtedly attract new investors who might not have enough cash to reach higher minimums charged by some other financial advisors.
As for fees, the Robo Advisor charges 0.5% on all accounts with $100,000 or less (however, the first $5,000 is always free).
After that threshold, the account type changes to Wealthsimple Black, which has a 0.4% fee and unlocks additional features.
The Good and Bad
What we liked about Wealthsimple
What we didn’t like about Wealthsimple
WealthSimple Promo Code
Get a special $50 bonus when you open and fund a new Wealthsimple account with a minimum of $100.
Sign up now to take advantage of this offer.
Wealthsimple can build you an intelligent, personalized portfolio using a Nobel Prize-winning investment strategy.
We would recommend Wealthsimple for people who are investing for the long term.
It’s best for people who are contributing regularly to their investments (remember you should be doing some investing for your future every month) commonly known as dollar cost averaging.
This is when you are putting in money on a regular on-going basis.
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Wealthsimple Review0.50% – 0.40%
Commissions & Fees7.4/10
Ease of Use8.6/10
- Simple to Use — Easy and fast sign up in under 5 minutes. You can do it all online and you don’t have to go in anywhere and sign papers. It’s simple.
- No Minimum Balance — You aren’t required to maintain a minimum balance which may be beneficial if you don’t have a lot of capital for investing.
- Socially Responsible Portfolio — Ability to grow your account over time with your money invested in socially responsible investments constructed by experts.
- Monthly Fees — Monthly fees are higher than other Robo Advisors.