RBC InvestEase vs Wealthsimple

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Two of the most well-known roboadvisors in Canada are RBC InvestEase and Wealthsimple.

Both Wealthsimple and RBC InvestEase provide a low-cost, simple, automated investing experience. Investors only pay a 0.50 percent management fee for their portfolio, and their funds are fully safeguarded.

Both roboadvisors will distribute your money among several exchange-traded funds (ETFs) that represent the stock and bond markets, rebalance your portfolio as necessary, reinvest any dividends you receive, and handle tax-loss harvesting. However, the ETFs they pick are genuinely different!

RBC InvestEase
Accounts AvailableTFSA, RRSP, unregisteredTFSA, RRSP, RESP, LIRA, unregistered
Minimum to Open an Account$0$0
Management Fee accounts <$100,0000.50%0.50%
Management Fee accounts $100,000+0.50%0.40%
Average Portfolio MER0.13%0.10% to 0.16%

The RBC InvestEase Portfolios

RBC InvestEase is a recent entrant in the Canadian roboadvisor market, but they made a big impression. In order to build their portfolios, RBC collaborated with iShares by Blackrock, resulting in the largest and most complete ETF offering in Canada. The RBC iShares partnership is enormous and offers everything an investor could want, with over 150 ETFs and $60 billion in assets under management.

Depending on your risk tolerance, RBC InvestEase offers 5 different investment portfolios. The 5 various RBC InvestEase Portfolios are as follows:

  • The Very Conservative RBC InvestEase Portfolio
  • The Conservative RBC InvestEase Portfolio
  • The Balanced RBC InvestEase Portfolio
  • The Growth RBC InvestEase Portfolio
  • The Aggressive Growth RBC InvestEase Portfolio

The Wealthsimple Portfolios

For those who have substantial portfolios, Wealthsimple has a marginally better offering. They reduce their portfolio management fee from 0.50 percent to 0.40 percent if you invest more than $100,000. As part of this “Wealthsimple Black” status, they also offer extra benefits and services, such as financial coaching.

Additionally, Wealthsimple surpasses RBC InvestEase in terms of a wider range of account options. With Wealthsimple, you can open a TFSA, RRSP, RESP, LIRA, or unregistered account. Only TFSA, RRSP, and unregistered accounts are available through RBC InvestEase.

Wealthsimple offers 3 primary portfolios with slightly different risk levels within them. They are:

  • Wealthsimple Conservative Portfolio
  • Wealthsimple Balanced Portfolio
  • Wealthsimple Growth Portfolio

Wealthsimple vs RBC InvestEase Portfolio Comparison

Wealthsimple vs RBC InvestEase Conservative Portfolio

Wealthsimple vs RBC InvestEase Conservative Portfolio
Wealthsimple vs RBC InvestEase Conservative Portfolio

Wealthsimple vs RBC InvestEase Balanced Portfolio

Wealthsimple vs RBC InvestEase Balanced Portfolio
Wealthsimple vs RBC InvestEase Balanced Portfolio

Wealthsimple vs RBC InvestEase Growth Portfolio

Wealthsimple vs RBC InvestEase Growth Portfolio
Wealthsimple vs RBC InvestEase Growth Portfolio

Similarities between RBC InvestEase and Wealthsimple

Aside from both being roboadvisors that offer investors a completely automated investing experience, Wealthsimple, and RBC InvestEase are very different.

Both RBC InvestEase and Wealthsimple allocate their portfolios by risk the same way

There is slight difference, but whether you’re choosing Wealthsimple or RBC InvestEase, your portfolio breakdown by risk is approximately the same for both and looks like this:

  • Conservative: 35% equities, 65% fixed income
  • Balanced: 50% equities, 50% fixed income
  • Growth: 70% to 80% equities, 30% to 20% fixed income

Both Robo-advisors use approximately the same number of ETFs

Wealthsimple uses nine different ETFs, compared to RBC InvestEase’s use of seven. The allocations for fixed income and equity are roughly the same. They even allocate money using the exact same ETF!

Conclusion: Should I Invest in RBC or Wealthsimple?

I wish I could give you a simple answer, but it is entirely up to you whether to invest with Wealthsimple or RBC. Due to the differences in their portfolios, each Robo-advisor has advantages and disadvantages and will perform better at various times.

As a Robo-advisor in the past, Wealthsimple has excelled due to its extensive exposure to the US stock market. The Canadian stock market is doing well this year while the US stock market is flat. RBC InvestEase will probably perform better than Wealthsimple in 2021 as a result. However, it’s likely that the opposite will be true in the future!

Select a robo-advisor, invest your funds there, and leave them alone—that is the best thing you can do for your money. Don’t try to chase shifting returns by switching platforms. By consistently selling securities and transferring money, you’ll end up losing money. The whole point of using an automated service like a robo-advisor is to avoid active investing, after all!

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