Wealthsimple review; is it really good in 2024?

Wealthsimple was founded in 2014 by Michael Katchen, Brett Huneycutt, and Rudy Adler, and I must say, I preferred the company in its earlier years compared to its current direction.

For the first five years, Wealthsimple focused solely on its flagship product, now called Wealthsimple Managed Investing. Some referred to it as a “robo advisor,” while others called it an “automated wealth manager.” Whatever the name, the core concept was straightforward:

• It took your money and invested it efficiently in a diversified portfolio of passively-managed index ETFs.
• It charged far lower fees compared to Canada’s mutual fund industry.
• It offered a super simple, hands-off way for people to start investing, with the option for automatic monthly contributions.

Though these points might seem simple, they were revolutionary for the average investor! You can read more about the ins and outs of robo advisors in our guide to Canada’s Best Robo Advisors.

However, things began to change as Wealthsimple sold more shares to large Canadian financial institutions. Unsurprisingly, these companies wanted to boost their profits, and the low-fee world of robo advisors wasn’t cutting it for them. So, Wealthsimple shifted its focus, sidelining robo advising (now rebranded as “Wealthsimple Managed Investing”) and diving into flashier offerings like crypto trading, private credit, private equity, and even precious metals.

As they lost focus on their original core product, they began making questionable investment decisions and frequently adjusted their portfolios, as noted by Ben Felix in the Globe and Mail. This push for higher profit margins has caused them to stray significantly from their initial mission of low-cost, passive investing.

On top of all that, Wealthsimple also tried ambitious, expensive expansions into the UK and USA markets—only to end up pulling back and shutting down those operations.

While the company has evolved, it’s fair to say it has drifted away from its original robo advisor roots, which helped so many Canadians get started with investing.

Wealthsimple review of Investing Performance

Robo advisor services are designed to handle all the investing for you using expert strategies, allowing for a completely passive investment approach. Often referred to as “couch potato” investing, this method requires little to no time managing your portfolio.

In contrast, active investing involves taking a hands-on approach to buying, selling, rebalancing, and managing your investments. For instance, stock picking is a classic example of active investing, where you’re in full control of your portfolio.

While Wealthsimple promotes a passive investment strategy, their approach has been far from purely passive. Over the years, they’ve frequently made changes to their portfolios, which have unfortunately led to poor performance compared to other Canadian robo advisors. In fact, Wealthsimple’s investment returns have lagged behind the competition due to several key mistakes, as reported by The Globe and Mail. These include:

• Overexposure to long-duration bonds, which performed poorly over the past few years.
• Using complex ETFs that focus on specialized strategies like low-volatility and factor investing, rather than sticking to straightforward index ETFs.
• Investing in gold ETFs, which historically haven’t performed well as long-term investments.

These missteps were largely avoidable, as evidenced by the fact that other robo advisors, like Justwealth, took a simpler and more effective approach to asset allocation. Here’s a comparison of Wealthsimple’s returns versus Justwealth’s over a 5-year period to highlight the differences in performance.

Portfolio Type	Justwealth	Wealthsimple
Moderate	5.18%	1.20%
Balanced	6.95%	3.60%
Aggressive	7.66%	5.70%

Is Wealthsimple as Safe?

Wealthsimple: A Safe and Secure Platform for Your Investments

When it comes to online financial services, safety and security are top priorities. Wealthsimple is no exception, ensuring that its users are well-protected from fraud and cyber threats. Its security measures are on par with any bank, robo-advisor, or brokerage in Canada.

Wealthsimple review and security features:

• Wealthsimple uses advanced Transport Layer Security (TLS) encryption, which is considered the gold standard for securing data transmitted over the internet. This encryption establishes a secure, encrypted connection between your device and Wealthsimple’s servers, ensuring that sensitive information like personal details, login credentials, and financial transactions are protected during transit. Even if intercepted, the encrypted data would be nearly impossible for unauthorized parties to access or decipher.
• To add another layer of protection, Wealthsimple offers two-factor authentication (2FA). This is like having a double-locked door where the second key changes each time you log in, making it significantly harder for anyone to gain unauthorized access to your account. Wealthsimple also continuously monitors transactions to detect and prevent fraud.
• In addition to these cybersecurity measures, Wealthsimple Invest accounts are protected by the Canadian Investor Protection Fund, covering up to $1 million.
• Concerned about the company’s stability? Rest assured, Wealthsimple is owned by Power Corporation of Canada, one of the largest companies in the country. Moreover, your assets are kept separate from Wealthsimple’s balance sheet, meaning they can’t be used for any purposes by the company itself.
• Lastly, Wealthsimple is regulated by the Investment Industry Regulatory Organization of Canada (IIROC), ensuring they adhere to strict financial regulations. So, while there’s always room for improvement in industry standards, Wealthsimple plays by the rules, providing a secure platform for your investments.

Wealthsimple Financial Advisors, do they really provide the services they claim?

Wealthsimple’s Fiduciary Duty and Customer Service: What You Need to Know

As a portfolio manager, Wealthsimple has a legal fiduciary duty to provide financial advice that is in your best interest, even if it conflicts with their own commercial interests. This is an important distinction that sets them apart from many bank and credit union advisors who don’t have the same obligation.

Wealthsimple’s website claims you can email questions anytime for financial advice, but reviews on the quality of this service are mixed. Some users report being satisfied with the answers they receive, while others feel the service falls short. In fact, Wealthsimple’s 1.5/5 star rating on TrustPilot suggests that their customer service could use significant improvement.

Once your assets reach $100,000, you can upgrade to Wealthsimple Premium, which offers financial check-ins with an advisor. At the $500,000 mark, you qualify for Wealthsimple Generation, where you’re assigned a dedicated financial advisor.

It’s worth noting, however, that other robo advisors like CI Direct and Justwealth provide dedicated financial advisors right from day one, regardless of your account size. This is something to consider if personalized financial guidance is important to you.

Wealthsimple review of Invest Accounts

Wealthsimple Invest: A Simple Way for Canadians to Grow Their Money

Wealthsimple Invest makes it easy for Canadians to invest in a variety of account types, including:

• RRSP
• TFSA
• RESP
• RRIF
• LIRA
• Personal
• Joint
• Corporate
• Cash Savings
• Joint Savings

Regardless of your account size, Wealthsimple offers several great features to enhance your investing experience. You’ll get a free portfolio review for any non-Wealthsimple brokerage accounts, and you can benefit from automatic tax-loss harvesting, which helps minimize your tax burden.

Other perks include access to fractional share investing, the option to make Socially Responsible Investments (SRIs), and coverage of up to $150 in transfer fees when you move over $5,000 from another investment account to Wealthsimple. Plus, the platform provides free money-saving tools to help you manage your finances more effectively.

With these features, Wealthsimple Invest is a solid option for Canadians looking for a simple and efficient way to grow their investments.

Wealthsimple Core vs Premium vs Generation

Wealthsimple Invest offers three account tiers—Core, Premium, and Generation—which are based on the amount of money you invest.

Each tier comes with its own set of benefits designed to suit different levels of investment. As your portfolio grows, you unlock more features and services tailored to your needs, offering a more personalized investing experience.

Here’s a quick breakdown of what to expect from each tier:

• Core: Ideal for beginners or those with smaller investments, offering essential investing tools and services.
• Premium: Available once you reach $100,000 in assets, giving you access to financial check-ins with an advisor.
• Generation: For those with $500,000 or more, this tier includes a dedicated financial advisor and more advanced services.

No matter which tier you fall into, Wealthsimple provides a streamlined and efficient way to manage your investments as they grow.

Feature/Service	Core	Premium	Generation
Assets Required	$1+	$100,000+	$500,000+
Management Fees	0.5%	0.4%	0.4%
Cash Account Interest	4%	4.5%	5%
Options Trading Fee	$2 USD/contract	$0.75 USD/contract	$0.75 USD/contract
Crypto Trading Fee	2%	1%	0.5%
Financial Advice	–	Financial check-ins	Dedicated financial advisor
USD Accounts	–	Included	Included

Wealthsimple Core explained

Wealthsimple Core: A Beginner-Friendly Way to Start Investing

With Wealthsimple Core, you can start investing with as little as $1, making it a great option for beginners. When you sign up, you’ll complete a quick assessment, and based on your answers, Wealthsimple will create a personalized portfolio tailored to your financial goals.

Once your portfolio is set up, you can literally “set it and forget it.” Wealthsimple handles everything for you, including auto-investing, rebalancing, tax-loss harvesting, and dividend reinvestment.

If you ever have questions or need more advice, you’ll have access to expert financial support whenever you need it. And the best part? You get all these features for a low management fee of just 0.5%.

Wealthsimple Core makes it easy to start investing and stay on track, even if you’re new to the world of finance.

Wealthsimple Premium explained

Wealthsimple Premium: Enhanced Features for Bigger Portfolios

Once your account reaches $100,000, you’ll automatically be upgraded to Wealthsimple Premium, which offers even more benefits than the Core tier, all at a lower management fee of 0.4%.

With Wealthsimple Premium, you’ll enjoy everything from the Core plan, plus additional perks. You’ll have access to tax-efficient funds along with tax-loss harvesting, helping you optimize your portfolio’s tax efficiency. You’ll also receive a free session with an experienced financial planner to help tailor an investment strategy that fits your goals.

Other benefits include a 15% discount on estate planning with Willful, so you can ensure your financial future is in order. And if you’re in Ontario, you’ll get 6 months of free health and wellness services with Medcan, adding even more value to your Premium account.

Wealthsimple Premium is designed to help you grow and protect your wealth as your portfolio expands.

Wealthsimple Generation explained

Wealthsimple Generation: Exclusive Perks for High-Net-Worth Investors

Wealthsimple Generation is the top-tier account designed for investors with $500,000 or more. At this level, you get access to premium features while still benefiting from a low 0.4% management fee. For those with over $10 million in assets, the fee drops even further to just 0.2%.

Generation account holders enjoy a dedicated team of financial advisors who are always available by email, giving you personalized advice whenever you need it. You’ll also receive a comprehensive financial report, outlining your investment strategy and the potential returns, tailored to your financial goals.

Your portfolio will be customized with bespoke asset allocations designed to maximize tax savings. Plus, you’ll get a 15% discount on estate planning with Willful, ensuring your assets are managed exactly how you want them. If you’re based in Ontario, you’ll also receive 50% off Medcan’s Comprehensive Care Plan for enhanced health and wellness services.

Wealthsimple Generation offers top-notch features and services, giving high-net-worth investors the tools they need to grow and protect their wealth.

Additional Wealthsimple Features that you might like!

Wealthsimple: A One-Stop Financial Hub

Wealthsimple offers much more than just low-cost robo advisor services—it’s a comprehensive financial platform. For DIY investors, there’s Wealthsimple Trade, which allows for commission-free trading, making it easy to buy and sell stocks with no hidden fees. For those interested in cryptocurrency, Wealthsimple Crypto lets you dive into the world of digital currencies with ease.

If you’re looking for more traditional money management tools, Wealthsimple also provides a Wealthsimple Cashaccount—a high-interest savings account offering a competitive 4% interest rate (even higher for Premium and Generation clients) along with 1% cashback on purchases made with their prepaid card.

Wealthsimple truly delivers a wide range of services to help you manage and grow your money, all in one convenient place.

Wealthsimple Fees

Wealthsimple’s account fees vary based on your investment tier and portfolio type. Here’s a breakdown of the fees you can expect:

• Core (up to $99,999): 0.5% management fee
• Premium (over $100,000): 0.4% management fee
• Generation (above $500,000): 0.4% management fee (reduced to 0.2% for investors with over $10 million in assets)

In addition to these management fees, if you choose to invest with Wealthsimple’s robo advisor service, there are Management Expense Ratios (MERs) for the ETFs in your portfolio. These are additional fees charged by the ETF providers, but they are very low and straightforward:

• Regular ETF MERs: Around 0.12% to 0.15% annually
• Socially Responsible Investing (SRI) ETF MERs: 0.21% to 0.23% annually

These low fees make Wealthsimple an affordable and smart choice for growing your investments while keeping costs minimal.

Wealthsimple Portfolio Options

Wealthsimple Invest offers three main portfolio options to suit different risk levels: Conservative, Balanced, and Growth. Each portfolio is diversified across several ETFs to help optimize your returns while managing risk. Let’s take a look at how these portfolios are structured and how they’ve performed since launching.

Conservative Portfolio

The Conservative Portfolio is designed for investors with low risk tolerance. It consists of:

• 35% equities
• 62.5% bonds
• 2.5% gold

This mix offers more stability, shielding you from market volatility, but with slower growth potential. Since its inception on January 1, 2016, this portfolio has seen an average annualized return of 1.20%.

Balanced Portfolio

The Balanced Portfolio strikes a middle ground between risk and growth potential, making it ideal for those with a moderate risk tolerance. It is made up of:

• 60% equities
• 37% bonds
• 3% gold

This portfolio aims to provide more growth while still offering some protection from market fluctuations. Since January 1, 2016, it has achieved an average annualized return of 3.60%.

Growth Portfolio

The Growth Portfolio is designed for investors with a higher risk tolerance and a longer investment horizon. It leans heavily towards equities, with the following asset allocation:

• 80% equities
• 17.5% bonds
• 3% gold

Though more volatile, this portfolio offers the potential for higher returns. Since its inception on January 1, 2016, it has delivered an average annualized return of 5.70%.

In addition to these three options, Wealthsimple also offers Halal and Socially Responsible Investing (SRI) portfolios, which cater to specific ethical and religious preferences.

Wealthsimple Socially Responsible and Halal Investing

Wealthsimple offers investors the chance to align their portfolios with their personal values through Socially Responsible Investing (SRI), a growing trend, particularly among millennials.

What is Socially Responsible Investing (SRI)?

SRI allows you to invest in companies that reflect your environmental and social values. Wealthsimple’s SRI portfolios focus on sustainability and positive social impact, using its own specially designed ETFs, including:

• WSRI: U.S. and Canadian stocks
• WSRD: European, Asian, and Australian stocks
• WSGB: Green and social bonds, which provide fixed income while funding projects that support environmental and social causes

These are complemented by BMO’s Long Federal Bond Index ETF (ZFL) and the SPDR Gold Minishares Trust ETF (GLDM), offering a well-rounded portfolio that balances ethical considerations with strong investment performance.

Halal Investing

In addition to SRI, Wealthsimple offers Halal Investing, which is tailored for investors looking to align with Islamic law. This portfolio excludes companies that profit from industries such as gambling, weapons, tobacco, and other restricted sectors.

Moreover, Halal investing avoids businesses that earn a significant portion of their revenue from interest on loans. All investments are rigorously screened by Shariah scholars to ensure they meet the highest Islamic standards, allowing you to invest confidently and ethically.

Both the SRI and Halal portfolios enable investors to grow their wealth while staying true to their personal or religious values.

Wealthsimple RRSP Accounts and TFSA Accounts

For most Canadians, the goal is simple—finding the easiest way to invest within a registered account. Wealthsimple makes it incredibly easy to open an RRSP, TFSA, or RESP. The process is quick, entirely online, and almost instant. Once you link your chequing or savings account, you can set up automatic contributions, putting your investments on autopilot.

This means no more scrambling during RRSP season or making last-minute investment decisions. Wealthsimple offers a safe, simple, and proven investment strategy that you can set and forget until you’re ready to make a significant change. While Wealthsimple provides a wide range of account options, these three registered accounts are the cornerstone of investing for many Canadians, and they are a key focus for Wealthsimple.

If you ever have questions about your Wealthsimple RRSP or TFSA, their online chat or phone support can help answer any concerns, from contribution limits to platform features. The only areas their initial support team might struggle with are more complex, niche topics like investment trusts—but for most investors, this won’t be a concern.

Wealthsimple makes investing in registered accounts easy, so you can focus on growing your savings without the hassle.

Wealthsimple User Experience

To begin your investing journey with Wealthsimple, you can have a discussion with an advisor via phone, email, or online chat. During this conversation, they’ll help you determine the best investment options based on your goals and risk tolerance.

Don’t hesitate to ask questions! Wealthsimple’s advisors are there to guide you, and while they may not have immediate answers to more complex questions, they’ll always provide advice with your best interests in mind.

Once you’ve had your initial discussion, you can easily manage everything through Wealthsimple’s website or their mobile app, making the process convenient and straightforward.

Wealthsimple Mobile App

The Wealthsimple App is an impressive tool designed to make investing easier than ever. Launched in December 2014, it was the first of its kind—created with the specific goal of streamlining the investment process.

In 2019, Wealthsimple introduced a separate Trade app for self-directed trading, but in 2022, they combined the Investand Trade apps into one, giving users a more unified experience.

Wealthsimple describes its app as a “financial advisor in your pocket,” and it lives up to the claim. With just a tap, you can connect with your wealth concierge, easily add funds, track your asset allocation, and monitor your portfolio’s performance—all in one convenient app.

Whether you’re just starting or looking to stay on top of your investments, the Wealthsimple app makes managing your finances simple and accessible.

Wealthsimple not only designed their app to be user-friendly and streamlined, but they also prioritize privacy and security. Instead of just relying on a standard password, users can opt for biometric logins like FaceID or TouchID, or set a unique 4-digit passcode (for iPhone) or a lock pattern (for Android), providing an extra layer of protection for your account.

Currently, the Wealthsimple app is highly rated, with a 4.5-star rating on the Google Play Store and a 4.6-star rating on the Apple App Store. Wealthsimple regularly updates the app to improve functionality, though occasional bugs can pop up, as is the case with most apps.

Overall, Wealthsimple is committed to offering both a seamless and secure experience for its users, making it easier to manage your investments with peace of mind.

How To Sign Up With Wealthsimple?

As the name suggests, signing up for a Wealthsimple account is incredibly simple. In just a few minutes, you’ll be set up and ready to start building your investment portfolio.

Before you get started, make sure you meet the qualifications for a Wealthsimple Invest account. You need to be a Canadian citizen, Canadian resident, or have a Canadian visa, and you must meet the age requirements of your province.

If you qualify, simply head over to the sign-up page, fill out the required information, and you’ll be ready to start investing in no time.

After logging in, you’ll provide a few additional personal details and complete a quick questionnaire. This helps Wealthsimple’s robo advisors determine the best portfolio allocation for your goals and risk tolerance.

Once your investment strategy is set, you’ll choose the type of account you want—registered, non-registered, or a transfer from another account.

Finally, you can decide whether to set up automatic contributions to keep your investments growing effortlessly.

And that’s it! You’re ready to make your first investment and start watching your wealth grow.

Is Wealthsimple the Best Robo Advisor? Our Expert Comparison

With so many options available for online brokerages and robo-advisor services, it’s important to understand what sets each one apart. Here’s a look at some of Wealthsimple’s key selling points that are worth considering when choosing the right platform for your financial needs.

• Easy sign-up and portfolio creation: Wealthsimple’s process is quick yet thorough. You’ll set your risk toleranceright from the start to ensure your portfolio’s asset mix is tailored to your preferences.
• No trading fees: You won’t pay trading fees, just low management fees, which makes investing cost-effective.
• No account minimum: Whether you’re just starting out or a seasoned investor, there’s no minimum balance required to open an account.
• Socially responsible and Halal portfolios: Wealthsimple offers unique portfolios for those looking to align their investments with ethical or religious values.
• Reputation and expertise: Wealthsimple combines advanced technology with financial experts, making it one of the most reputable robo-advisor services in Canada.
• Set it and forget it: Wealthsimple makes investing easy and stress-free. Once your portfolio is set up, you can let it grow automatically.
• Automatic rebalancing: Wealthsimple’s automatic rebalancing ensures your portfolio remains balanced without the hassle of buying or selling assets yourself.

Now that you’re familiar with Wealthsimple’s many benefits, let’s take a closer look at how it stacks up against the top robo-advisor in Canada—Justwealth—with a comparison chart.

Feature	Justwealth	Wealthsimple
Number of Portfolios Available	Over 80 portfolios designed for growth, income generation, or wealth preservation	3 standard portfolios, plus SRI and Halal options
Personalized Financial Advisor	Yes	Available at Premium and Generation levels
5-Year Returns (Balanced Portfolio)	8.48%	4.70%
Fees	0.40% – 0.50%	0.40% – 0.50%
Target-Date RESP Funds	Yes	No
Account Minimum	$5,000 (exceptions for RESP and FHSA accounts)	None
SRI Options Available	Yes	Yes
Promo Offer	$100 – $500 Instant Cash Back	$50 Sign-up Bonus

Wealthsimple Review: Summary

Wealthsimple has undergone significant changes since its early days. It started as a simple, straightforward robo advisor under the name Wealthsimple, with a clear focus on index investing. Then came Wealthsimple Invest, and now it’s branded as Wealthsimple Managed Investing—and it seems like this part of the business is becoming less of a priority.

Gone are the days when Wealthsimple was known for offering a simple, value-driven proposition centered around low-cost, passive investing. The company has shifted its focus to cross-selling crypto, discount brokerage services (through payment-for-order flow), and even mortgages.

It’s clear that the drive for profits has changed Wealthsimple’s approach, and they’re at risk of becoming a jack-of-all-trades, but a master of none.

If you’re looking for a better robo advisor, we recommend checking out our Justwealth Review. And if you’re interested in a top-tier DIY online brokerage, take a look at our Qtrade Review.

To be fair, Wealthsimple still excels at building beautiful websites, running great marketing campaigns, and providing an easy-to-use app. Their Wealthsimple Tax service is also a solid addition to the platform. However, the recent focus on unusual assets like gold, private credit, private equity, and especially cryptocurrency has strayed from the company’s original mission.

The asset allocation issues in their managed portfolios are becoming too significant to overlook, and as a result, Wealthsimple has slid down our list of top Canadian robo advisors.

Wealthsimple – FAQs