Wealthsimple Invest / Socially Responsible Investments

  • Wealthsimple Invest helps you align your values with socially responsible investments through diversified and low-cost ETFs.
  • No minimum balance, robo-advice, and access to financial advisors. Basic features include auto-deposits, auto-rebalance, and dividend reinvesting.
  • Get a free portfolio analysis of your existing non-Wealthsimple portfolios.
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Wealthsimple makes socially responsible investing simple with diverse portfolio choices and access to financial advisors.

If you’re looking to invest aligned with your values, then continue reading to understand how you can grow wealth without compromise.

Wealthsimple Overview

Wealthsimple Invest offers long-term investment management accounts with no minimums. Your money is invested in a diversified portfolio of low-cost exchange-traded funds that focus on companies working to reduce carbon emissions, promote gender diversity, and invests in clean-tech in developing countries.

Ready to start investing with a purpose? Get started right now with Wealthsimple.

Socially Responsible Investments (SRI)

Socially responsible investing is often referred to as values-based investments or sustainable and ethical investing. It’s a practice of investing money in companies and funds that have a positive social impact. SRI is still about growing profits but the metrics for investing aren’t solely based on financial returns.

SRI favors companies in environmental sustainability, social justice, equality, and clean or renewable energy. It also avoids investments in companies that produce alcohol, gambling, or tobacco.

You may find some SRI matching your values more than others.

Do Socially Responsible Investments (SRI) perform?

Several studies have shown that SRI mutual funds can match traditional mutual funds in performance and at times perform better. SRI may not only make you feel good, it may be good for your pockets.

What is Wealthsimple?

Wealthsimple is a robo-advisor and the largest in Canada and available in the United States. They provide long-term investment management with no account minimums and a portfolio that is invested in thousands of different companies across major sectors around the globe.

How Wealthsimple Works

Wealthsimple offers a free portfolio review service to help you understand how your non-Wealthsimple investments perform. You’ll get an evaluation of fees, tax efficiency, and asset allocation.

The investment approach used is based on Modern Portfolio Theory (MPT) developed by Nobel Prize-winning economist Harry Markowitz. He demonstrated that you can minimize risk and maximize returns through diversified investments.

After signing up, you complete a risk assessment to effectively recommend a portfolio mix. The recommendations are based on your risk tolerance, financial goals, time horizon, and investment experience.

With Wealthsimple, you’re not alone. You get access to financial advisors through email or phone call to discuss your portfolio and make changes.

Investment Options

Wealthsimple diversifies your investments to minimize risk and maximize returns by investing your money across the entire stock market using ETFS. The robo-advisor will help you choose a risk level you’re comfortable with to build your custom portfolio based on your financial goals.

  • Socially Responsible – invest in do-good companies.
  • Hala Portfolio – an option for Muslim investors that adheres to Islamic Halal rules (e.g. no investments in companies associated with alcohol, gambling, etc.)

Wealthsimple Products

Choose the right product for you:

  • Personal Accounts – an account to build your wealth alongside your 401(k) or IRAs. These accounts are taxable but can be withdrawn at any time.
  • Retirement Accounts – save for retirement using Traditional or Roth IRAs. SEP IRA is available for self-employed.
  • Joint Accounts – a taxable account with your spouse or business partners.
  • Trust Accounts – hold assets for a beneficiary for better estate and tax planning.

Features & Benefits

  • Auto-deposits – make your contributions automatic
  • Automatic rebalance – rebalance your portfolio as market changes
  • Dividend reinvesting – instantly put your stock dividences back to work.
  • Easy access – manage your accounts from anywhere.
  • Tax-loss harvesting – selling of securities at a loss to offset a capital gains tax liability.
  • Access to financial advisors – discuss your goals with fiduciary experts.

Wealthsimple has your assets held by APEX Clearing Corporation, an independent clearing services firm. APEX is a member of SIPC. SIPC insurance covers up to $500,000 in securities for each type of account you hold with Wealthsimple and up to $250,000 in cash.

Fees & Pricing

Wealthsimple offers 3 pricing tiers:

Basic Black Generation
Account Minimum $0 – $100K $100K $500k
Fees 0.50% 0.40% 0.40%

 

Basic – for investors starting out with a minimum deposit between $0-$100,000. Get a personalized portfolio and expert financial advice.

Black – for investors with higher account balances. With $100,000 or more you’ll get reduced annual management fees, financial planning sessions, and VIP access to airport lounges, and additional tax-efficiency features.

Generation – for high net worth individuals looking to grow and preserve wealth. Requires $500,000 or more to get all the Black Program features plus more customized support and tailor-made portfolios.

Wealthsimple also offers a Save account, an alternative low-risk investment for savings goals. With Wealthsimple Save your money is invested in a low-risk investment portfolio of ETFs designed for the short-term. Withdraw at any time, no hidden fees, and start with as little as $1.

Wealthsimple Review

Wealthsimple makes investing, well, simple. It also helps you focus on what matters most to you by offering socially responsible investments. If your a values-based investor or looking to diversify your portfolio, then Wealthsimple may help you achieve your investment goals. The basic model offered is unlike that offered by other robo-advisors in the market. It’s made the phroogal Smile List for best robo-advisors.

With no minimum account balance and live customer support, it’s a great option for those seeking more than algorithmic recommendations. The fees may be a bit more compared to competitors Betterment and others, but you also get more features and access. As your balance increases, the fees decrease as well making it more in line with other robo-advisors.

Who is it best for?

It’s best for investors who want socially responsible investments. However, if you have more than $100k to invest, then Wealthsimple becomes an even better option.
How to start using Wealthsimple

Time needed: 5 minutes.

Step-by-Step to opening an account with Wealthsimple

  1. Getting started
    Use this link to get started with Wealthsimple.
  2. Complete an assessment
    Provide answers about your financial goals.
  3. Get your portfolio recommendation
    Review suggestions
  4. Connect your bank account
    Make your deposit.

Additional information

Investing Type

Automated Investing

Key Features

Automatic Deposits, Automatic Rebalancing, Financial Advisor Access, Portfolio Analysis, Tax Loss Harvesting, Tax Strategy

Minimum Deposit

$0

Investments Available

Bond ETFs, Stock ETFs

Investment Portfolio

Modern Portfolio Theory (MPT), Socially Responsible Portfolio

Fees

0.4% – Balances $100,000+, 0.5% – Balances $0.01 – $99,999, No Minimum Fees

Average Rating

5.00

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1 Review For This Product

  1. 01

    by Jason Vitug

    Wealthsimple: Is it right for you?

    Wealthsimple is a legitimate service offering one of the best in class robo-advisor service for millennials. If you’re looking to align your investing with your values, Wealthsimple makes it simple to do so. Although the fees may be higher compared to Betterment or Wealthfront, you do get more compared to those robo-advisors. For one, you get access to financial experts to discuss your portfolio and goals. That’s usually reserved for the highest net worth folks.

    Pros and Cons

    Pros
    ✓ Socially responsible investment options
    ✓ Access to human financial advisors
    ✓ Free portfolio analysis

    Cons
    ☓ Higher account management fees

    I highly recommend using the free portfolio analysis of your non-Wealthsimple portfolios. You’ll get a good analysis to help you understand the fees and allocation. Then, you can choose to transfer your existing portfolio if it makes sense.

    Are you looking for socially responsible investments or halal choices with actual financial advice? Check out Wealthsimple.

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