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Discussion Starter · #1 ·
Hello,

If I have more than 100k in Wealth Simple Invest in save, a combination of rrsp, tfsa, and HISA, or cash, I am charged 0.4% to manage the account vs 0.5% if I have less. Now on top of that I also have to pay the ETF fees.

So, for the regular robo, risk level 9 these are the holdings.

Equities
VTI: MER 0.03
XEF MER 0.16
XIC MER 0.06
ACWV MER 0.32 (not sure if this number is correct, could someone check?)
VUS MER 0.16

Fixed Income
ZFL MER 0.22
GLDM MER 0.18

So am I correct that my yearly fees would be 0.4 + 0.03 + 0.16 + 0.32 + 0.16 + 0.22 + 0.18 = 1.13%?

Total yearly fees: 1.13%

Is this correct? And if so, is it considered decent?

Also is Gross Expense Fee the same as Management Expense Ratio the same as Expense Ratio?

ACWV at 0.32 seems expensive?

Please let me know if I have made any mistakes.

Thank you.

Total yearly fees:
 

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The ETF MERs have to be weighted and averaged for their relative proportion in the portfolio, i.e. they are not cumulative. For instance if VTI is 20% of the portfolio, then its contribution is 20% of 0.03% and so on, add all those components together and then tack on 0.4% for robo fee. I suspect the total is <0.65%.
 

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Discussion Starter · #3 ·
The ETF MERs have to be weighted and averaged for their relative proportion in the portfolio, i.e. they are not cumulative. For instance if VTI is 20% of the portfolio, then its contribution is 20% of 0.03% and so on, add all those components together and then tack on 0.4% for robo fee. I suspect the total is <0.65%.
Ah I see. 0.67 hand off on my end isn't too ad I guess.
 

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If I have more than 100k in Wealth Simple Invest in save, a combination of rrsp, tfsa, and HISA, or cash, I am charged 0.4% to manage the account vs 0.5% if I have less. Now on top of that I also have to pay the ETF fees.
Honestly this is why I don't like wealthsimple.
$100k at 0.5% is $500/yr.

I don't trade weekly.

I put my funds into BMO, buy stocks for $10 a few times a years, and throw the rest into their no fee ETF list, and it's pretty good IMO.
 

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Discussion Starter · #7 ·

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You are clearly a more experienced investor than I am.
Naw, just watching total costs/fees.
I only trade a handful of times a year.

If you have $10 trades, at 0.5% your break even is $2k. My portfolio turnover is really low.
Excluding company plan (mutual fund regular contributions), I basically don't make many investment transactions.

Most years I'm well below $50 in trade commissions, honestly I think I'm a borderline client for most brokerage accounts.
I don't see how it's worth dealing with an account of $25-100k, and 10 trade commissions over the last decade. But I assume that's atypical behaviour.
 

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Not everyone is ready to fly solo as in DIY discount brokerage. I think robo-advisors are a good place to start investing and as knowledge/confidence increases, move on to DIY. Those of us who DIY using Couch Potato ETFs, or simplly ONE holding of an Asset Allocation ETF, know it is 'brain dead' easy but so does an experienced pilot taking off down the runway.

I'd rather see a newbie be interested in investing, and using the services of a robo-advisor, than doing nothing at all... or falling into the clutches of a full service financial advisor.

Like MrMatt has articulated, I make less than 5 trades per year most years, 2 of which are necessary (1 in my TFSA, 1 in my RRIF) and the rest are opportunistic or doing a Norbert's Gambit to exchange currency. There is no reason for frequent trades to be a successful investor.
 
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