A new, low-cost, automated financial advisory service, Wealthsimple, officially launched in Ontario and B.C. Monday.
The service charges between 35 and 50 basis points per year to construct investment portfolios comprised of low-cost index funds across 10 asset classes. The minimum account size is just $5,000, and it offers both registered and non-registered accounts. The firm doesn’t charge trading fees, or impose administration fees on RRSP and TFSA accounts. Automatic rebalancing and tax loss harvesting are also provided.
Wealthsimple Financial Inc. is registered as a portfolio manager in Ontario and B.C., but the service indicates that it plans to roll out the service in the rest of Canada soon. Virtual Brokers provides its custody and brokerage services.
Industry veteran Joe Canavan serves as executive chairman to the firm. “Since launching in the U.S., online investment platforms have exploded, attracting more than $3 billion in assets under management. Now, with the launch of Wealthsimple, Canadians can enjoy the next evolution of investing in Canada,” Canavan said.
“Our mandate is to take the guesswork out of investing,” said Michael Katchen, founder and CEO of the company. “We built our investment platform from the ground up by working with some of Canada’s foremost finance experts and technologists to deliver a product that offers sophisticated investment strategies and personalized service that’s affordable.”
The company’s roster of investors and advisors also includes: renowned academics, finance professor, Eric Kirzner, and Roger Martin, former dean of the Rotman School of Management. “The key to responsible investing is discipline,” said Kirzner, head of value investing at the Rotman School of Management. “Pick your asset allocation, consider your risk tolerance, and do it in a way that is educated and emotionless. The platform and process developed by Wealthsimple brings these principles to life and I am excited to be part of the team to deliver it to Canadians.”