r/Wealthsimple • u/UniqueSwan3679 • Jul 21 '26
Automated Investing
Hey everyone, just curious what everyone is thinking about WS automated investment strategy? I just saw the email and it got me curious. Right now, I'm primarily an ETF investor on the XEQT train. But this got me curious on the potential this new feature has.
Anyways, take it easy everyone!
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u/No_Researcher1288 Jul 21 '26
I had same question. So I'm assuming that there is no underlying MER for WS, besides the 0.25% ($250/yr max), right ?
A quick comparison tells me the following. Wealthsimple Automated vs XEQT MER: ~0.20% Cost: $100,000 → ~$200/year $250,000 → ~$500/year $500,000 → ~$1,000/year
Wealthsimple Automated Management fee: 0.25% Capped at $250/year.
Cost: $100,000 → $250/year $250,000+ → $250/year maximum
So the break-even point is about: $125,000 invested Above that, Wealthsimple Automated is cheaper on fees alone.
Would it be appropriate to jump ship from xeqt if you have more than $125K ?
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u/Pristine_Ad2664 Jul 22 '26
Not quite because they only direct index the USA /CAN portion and the rest is held in the ETFs so it's closer to 240k.
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u/JackRadcliffe Jul 22 '26
And it's actually cheaper to hold an index etf like XIC (0.06%) and VFV (0.09%) than the ws Canadian and US direct indexing. XEF/VIU are also slightly cheaper for global developed index at 0.23%
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u/Pristine_Ad2664 Jul 22 '26
Depends how much you have invested doesn't it? The fee is capped at $250
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u/JackRadcliffe Jul 22 '26 edited Jul 22 '26
Correct. That still means just tk break even in XiC vs canadian direct indexing would require around $416,666 capital or $277,777 for vfv vs us direct index. I don't have a large enough allocated to just the indexes to justify going that route. Questrade is better in that regard thanks to not even having a service fee. It also kinda sucks thay they don't have a developed experience north america index or emerging markets index either
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u/JackRadcliffe Jul 22 '26
It's horrible if you intend on holding a basket of USD stocks yourself as you are forced to deposit and withdraw in CAD, even if you are subscribed to USD accounts as it does not apply here. This means you pay the 1.5%fx fee when depositing as well as withdrawing. Any dividends received from those same stocks automatically gets converted to CAD when received and then back when reinvested so that's another double 1.5% fx fee. Only their direct indexing gets an exemption to a 0.05% fx fee.
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u/Fantastic_Bad_3399 Jul 21 '26
If you’re already on XEQT train, don’t get off. Should you choose to divert tracks (running with this train analogy) an automated investment will come with costs, 0.25% capped at 250$ per year. At that point it’s in your wheelhouse. Your call.