RBC InvestEase and Wealthsimple are among the best robo-advisors in Canada. They offer managed investment services to hands-off investors looking to build wealth in the long term without the hassles of DIY investing or the high fees charged by mutual funds.
Launched in 2018, RBC InvestEase is owned by the Royal Bank of Canada (RBC) and is reputed for its comprehensive index ETF list of up to 150 ETFs. Read my detailed RBC InvestEase review.
Wealthsimple has been around since 2014 and has grown to become the most reputed digital wealth management firm in Canada, with more than $15 billion in assets under management.
Read my detailed Wealthsimple review or open an account and deposit $500 or more to get a $25 cash bonus.
While both RBC InvestEase and Wealthsimple charge comparable fees, Wealthsimple is cheaper and offers additional perks when investing $100,000 and above.
In this post, I compare RBC InvestEase vs Wealthsimple Invest in terms of fees, accounts, portfolios, ETF list, and more so that you can make an informed choice.
RBC InvestEase vs Wealthsimple
| Feature | RBC InvestEase | Wealthsimple |
| Annual management fee | 0.5% flat fee | 0.4%-0.5% |
| ETF Management Expense Ratios (MERs) | Standard: 0.11%-0.13%; SRI: 0.18%-0.23% | Classic: 0.12%-0.15%; SRI: 0.21%-0.23%; Halal:0.25%-0.5% |
| Portfolio Types | 5 | 3 |
| Portfolio performance | 6.3% (aggressive growth portfolio) since inception —2018 | 50.33% (growth portfolio) since inception — 2014 |
| SRI Portfolios | Yes | Yes |
| Accounts | TFSA, RRSP, non-registered account | TFSA, RRSP, RESP, LIRA, Spousal RRSP, non-registered accounts |
| Minimum Investment | $100 | As little as $1 |
| Free deposits/withdrawals | Yes | Yes |
| Transfer out fee | $135 | Free |
| Automatic rebalancing and DRIPs | Yes | Yes |
| VIP Perks | No | Yes |
RBC InvestEase vs Wealthsimple: Portfolio Types
RBC InvestEase offers more portfolio types, up to five, than Wealthsimple, which offers only three (3) portfolio types.
RBC InvestEase Portfolios
- Very Conservative: Invests in 80% fixed-income ETFs & cash and 20% equity ETFs.
- Conservative: Your account is invested in 65% fixed-income ETFs & cash and 35% equity ETFs.
- Balanced: Invests in 45% fixed-income ETFs & cash and 55% equity ETFs.
- Growth: Your money is invested in 30% fixed-income ETFs & cash and 70% equity.
- Aggressive Growth: Invests in 2% fixed-income ETFs & cash and 98% equity.
Wealthsimple Portfolios
- Conservative: Invests in 70% bonds and 30% stocks.
- Balanced: Your account is invested in 50% bonds and 50% stocks.
- Growth: Invested in 10-25% bonds and 75-95% stocks.
Wealthsimple vs RBC: Management fees
RBC InvestEase charges a flat annual management fee of 0.5%. In addition, you’ll also pay an ETF management expense ratio of 0.11%-0.13% for the standard portfolios and 0.18%-2.3% for SRI portfolios.
Wealthsimple uses a tiered fee structure of 0.5% for accounts balances below $100,000 and 0.4% when investing more than $100,000. ETF management ratio fee stands at.12%-0.15 % for classic portfolios, 0.21%-0.23% for SRI, and 0.25%-0.5 % for Halal.
RBC InvestEase vs Wealthsimple: Investment Accounts
RBC InvestEase offers three (3) account types to hold your investment portfolio, including TFSA, RRSP, and non-registered accounts.
Wealthsimple offers up to 6 account types, namely TFSA, RESP, RRSP, Spousal RRSP, LIRA, and non-registered accounts.
Wealthsimple vs RBC InvestEase: ETFs used
RBC InvestEase offers the most comprehensive ETFs in Canada, and your portfolio is diversified with up to 150 index ETFs. The top ones include
- iShares Core Canadian Short-Term Bond Index ETF (XSB)
- iShares Core S&P 500 Index ETF (XUS)
- iShares Global Government Bond Index ETF (CAD – Hedged) (XGGB)
- iShares Core Canadian Universe Bond Index ETF (XBB)
- iShares Core MSCI EAFE IMI Index ETF (XEF)
- iShares Core S&P/TSX Capped Composite Index ETF (XIC)
- iShares Core MSCI Emerging Markets IMI Index ETF (XEC)
Your Wealthsimple portfolio is built with 8-10 index ETFs, including
- XIC – iShares Core S&P/TSX Capped Composite Index
- IEFA – iShares Core MSCI EAFE
- VUS – Vanguard US Total Market ETF (CAD-Hedged)
- ZFM – BMO Mid Federal Bond Index
- VTI – Vanguard Total Stock Market
- IEMG – iShares Core MSCI Emerging Markets
- XSH – iShares Canadian Short Term Corporate + Maple Bond Index ETF
- ZHY – BMO High Yield US Corporate Bond Hedged to CAD Index
RBC vs Wealthsimple: SRI Investing
Both RBC InvestEase and Wealthsimple offer Socially Responsible Investing (SRI) for the different portfolio types to allow value investing in companies that incorporate ESG factors to make an impact for a better world and future.
In addition, Wealthsimple offers Halal portfolios that are aligned with Islamic law.
RBC vs Wealthsimple: Security
Both RBC and Wealthsimple are secure robo-advisor platforms, and your investment account is just as secure as money in your bank account.
Both are members of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF), which protects your investment account up to $1M if the broker becomes insolvent or bankrupt.
In addition, RBC offers a 100% security guarantee against online fraud. You also enjoy the confidence of investing with a Robo-advisor provided by the Royal Bank of Canada, the largest Canadian bank by market cap.
Wealthsimple employs bank-grade security features to keep your funds safe, including 2-factor authentication and state-of-the-art data encryption. Wealthsimple is also backed by large financial institutions in Canada up to $380M.
RBC InvestEase vs Wealthsimple Investing: Other Perks
Portfolio Rebalancing and DRIPs
Both RBC and Wealthsimple offer automatic account rebalancing and dividend reinvesting plans (DRIPs). Your portfolio allocations are adjusted, and dividends are reinvested with no action on your part.
Tax-loss harvesting and other VIP perks
Wealthsimple offers Tax-loss harvesting to help its VIP clients save money through tax-loss selling. Other VIP perks include a goal-based planning session with an account manager, airline lounge access, lower fees, and a medcan comprehensive plan health discount of more than $2,000 per year.
RBC InvestEase doesn’t specify whether there are VIP perks.
Transfer fee
RBC InvestEase charges an account transfer fee of $135 when transferring your account to another financial institution. Wealthsimple doesn’t charge an account transfer fee.
Minimum investing
Wealthsimple doesn’t have a minimum investment requirement. RBC InvestEase has a minimum investment of $100.
Wealthsimple vs RBC InvestEase: Key Takeaways
Wealthsimple
- No minimum investment
- Tiered fees —enjoy fee discounts and VIP perks for larger investment accounts
- Classic portfolios and SRI & Halal portfolios for value investing
- Six (6) investment accounts, but only three (3) portfolio types
- Tax-loss harvesting and goal-based financial planning session
RBC InvestEase
- Enjoy the security of investing with a robo-advisor owned by a large bank
- A low minimum investment amount of $100
- Has the most comprehensive ETF offering (up to 150) in Canada
- Flat fees —no fee discount regardless of the investment amount
- Five (5) portfolio types, but only three (3) investment accounts.
- Standard and SRI portfolios
FAQs
Yes, Wealthsimple Invest is somewhat cheaper than RBC InvestEase because you get fee discounts for larger investment amounts.
While RBC InvestEase levies a flat management fee of 0.5%, this rate applies to Wealthsimple when investing less than $100k. You get a cheaper rate of 0.4% and even enjoy additional perks when you invest $100k+.
RBC InvestEase is a robo-advisor that offers managed investing services at a fee and is great for hands-off investors looking to build wealth on auto-pilot using diversified, low-cost ETF portfolios.
RBC Direct Investing is an online trading platform that’s great for self-directed, active investors who have the knowledge and skills to pick stocks, invest, and manage their portfolios on their own.
Wealthsimple Invest is robo-advisor that allows you to put your money on autopilot by investing with a well-diversified portfolio of low-cost ETFs managed by experts. Wealthsimple Trade is a simple online trading platform for self-directed investors who want to pick stocks/ETFs and invest on their own.
Basically, there’s no minimum balance requirement for RBC InvestEase, as you can get started with any amount. However, your account will only be invested when your balance reaches $100.
Yes, you can transfer an investment account from RBC InvestEase to Wealthsimple, but you’ll pay a transfer fee of $135 plus applicable sales taxes. The good thing is that Wealthsimple waves this fee up to $150 for transfer amounts over $5,000.
Wealthsimple is better than a bank if you want to invest your savings and build wealth in the long term, while a bank is great for keeping cash for use in the short to near term. That said, Wealthsimple also offers savings/chequing accounts and Wealthsimple Cash which you can take advantage of for everyday use.
