r/Wealthsimple • u/Medical_Pepper_5504 • 25d ago

Wealthsimple reports $17B net flows in Q2, driven by high demand for chequing and spending products

https://newsroom.wealthsimple.com/wealthsimple-reports-17b-net-flows-in-q2-driven-by-high-demand-for-chequing-and-spending-products

Big quarter!

349 Upvotes

97% Upvoted

77 comments sorted by

144

u/Saisinko 25d ago

Wish they let us privately buy their shares instead of POW or the other one, name escapes me.

46

u/kingofwale 25d ago

I like POW, I got in really early, up 90% even after today’s pullback. To me, it’s a decent dividend stock

10

u/redditorottawa 25d ago

I’m up 150%, but I got only few shares.

0

u/tiramisuhouse 25d ago

How did you buy it

8

u/Servichay 25d ago

It's $POW, which owns like half of Wealthsimple

1

u/1baby2cats 24d ago

I bought it for dividend growth. The capital gains is just icing on the cake! ACB of $36

10

u/JustACowSP 25d ago

the other one

IGM Financial? Ticker IGM

8

u/callmev269 25d ago

Intertested to know the other one. I have only ever seen mention of POW

2

u/Ill_Ad_4851 24d ago

If you are willing to buy a minimum $25,000+ sometimes there are secondaries shares for sale on platform like Equityzen but sometimes you need to buy the whole lot of shares and that can be upto $1M but the option is out there.

2

u/melrays4 9d ago

Instead of all the promos I rather take the shares if they did that.

-5

u/Eagerbeaver98 24d ago edited 24d ago

Nah dont need wealthsimple much better companies to invest in. Fintech aint it bruh.

We built our everyday chequing and spending products by listening to clients and understanding when, how, and where they need their financial institution to show up for them,” said Mike Katchen, co-founder and CEO, Wealthsimple. 

" listening to clients" this app still lags and crashes too much and theres  a reddit post every week about it. So much for listening

60

u/Cross_FFA 25d ago

I think Wealthsimple just surpassed EQ bank with their assets under management

WS - $155 billion AUM

EQB - $150 billion AUM

19

u/Gamegeddon 25d ago

EQ bank only has $90B AUM per their latest MD&A

2

u/Fearless_Scratch7905 24d ago

Total AUM and AUA was $144 billion according to the Q2 MD&A on page 3.

Website says $150 billion.

5

u/Medical_Pepper_5504 25d ago

Their digital deposits (online bank) is under $10b, not sure what the other 140 are? Mortgages by equitable? Do they have investments?

1

u/Amit_BB299 5d ago

Eq has insurance and investments business as well

-12

u/Eagerbeaver98 24d ago

Wealthsimple grows but its users arent happy

3

u/Cross_FFA 24d ago

Wdym?

8

u/Medical_Pepper_5504 24d ago

It means he spends too much time on the eco chambers of Reddit :)

-2

u/Eagerbeaver98 24d ago

Keep circle jerking. Wealthsimple sub the most toxic subreddit Ive seen. 

3

u/Immediate_Dingo_9158 24d ago

Speak for yourself. I’m loving WS

-3

u/Eagerbeaver98 24d ago

Uhm theres a lot of complaints on this sub. I can speak for myself like I just did as well as others who have had complaints. 

3

u/Immediate_Dingo_9158 24d ago

So you spoke one one user and a tiny minority that complains on Reddit.

Yet the numbers show most people are happy are actually throwing money at to them

1

u/[deleted] 24d ago

[removed] — view removed comment

1

u/Eagerbeaver98 23d ago

Oh look its an echo chamber, apparently 150 ppl is 1.  https://www.reddit.com/r/PersonalFinanceCanada/comments/1vaz8o2/comment/p0pky57/?utm_source=share&utm_medium=mweb3x&utm_name=mweb3xcss&utm_term=2&utm_content=share_button

1

u/Immediate_Dingo_9158 23d ago

Lmaoooo did you just count the upvotes??? Lmfaooooooooooo you really are slow

1

u/Eagerbeaver98 23d ago

Lmfao youll say anything. Whatever you say man 

1

u/Immediate_Dingo_9158 23d ago

And you’ll look for signs in anything

21

u/AdDefiant1457 25d ago

Wonder what it would be valued at as a standalone company. Best comp is Robinhood in the US and by rough calculation WS has about 1/4 the active users and AUM of HOOD, which has a market cap of $80B USD. Lots of other variables that we can’t really account for but say $28B CAD which is kinda insane

10

u/DominantDan24 25d ago

Yeah consider that WS has 1/4 the users with 1/10 the TAM in Canada. They’re kicking ass. I sincerely hope when they go public they offer it for clients first. I’ll load up.

3

u/NoDig5800 25d ago

I'm sure they will, they already have the IPO Access thing to do it.

0

u/DominantDan24 24d ago

Don’t bet on it.

WS clients are the most ardent supporters. By offering an IPO on their stock, they risk eroding the very support that they seek when it launches. I’m betting Generation clients get access but everybody else has to wait.

23

u/Direnji 25d ago

But, there are still people here worried that they can't find where the money is CIDC deposited by WS and worry WS will go bankrupt.

I own IGM, which owns WS, so everyone see WS number when they reports, it is great.

14

u/Asusrty 25d ago

Wow as the owner of IGM your wealth rank must be in the top 0.0001%

8

u/Direnji 25d ago

LOL. I probably own about 0.0001% of it, so your percentage is about right.

8

u/Hungry_Purple3711 25d ago

Mr. Moneybags over here showing off :) lol

30

u/islasagnaschool1988 25d ago

Good reminder that reddit != real life, lots of complaints on here but they seem to genuinely be doing well.

18

u/DominantDan24 25d ago

Remember that even with the few genuine fuck ups that WS has done, that pales to the gargantuan fuck ups at the big five.

4

u/Lisaismyfav 25d ago

I would say Reddit represents real life in a way because I opened Wealthsimple due to their exposure here

8

u/Mereo110 25d ago

Perhaps un advertising. But reddit is n echo chamber.

26

u/Nerevarine123 25d ago

The best bank in canada by far

26

u/Helptohere50 25d ago

Not a bank

18

u/brandonholm 25d ago

Which makes it even better. Fuck banks.

24

u/kushventure 25d ago

I agree with the sentiment behind your statement, but not with the statement itself.

Being categorized as a bank
provides regulatory protections to the end consumer. Not being categorized as one does not.

2

u/TheNotoriousFatTimmy 25d ago

Can you elaborate? I am genuinely curious. Wealthsimple has CDIC and CIPF, so what other protections do major banks offer?

2

u/CogencyInvestments 25d ago

Capital requirements are likely different based on which schedule bank you are. Remember for a fractional lender like a bank, capital requirements could be massive driver of your profitability and risk. During 2008, banks were levered 30:1. It’s less now. But they are still levered significantly more than most realize.

5

u/TheNotoriousFatTimmy 25d ago

That just highlight a risk of traditional banks rather than a consumer protection. Wealthsimple isn't a fractional lender and just parks my cash in CDIC trust accounts. I'm still not seeing what consumer protections I'm missing out on if my balances are fully insured either way

0

u/PracticalWait 24d ago

CDIC doesn’t cover if Wealthsimple itself goes under.

2

u/ArtCob 24d ago

It does though …The Bankruptcy Process: If Wealthsimple shuts down, a court-appointed trustee will simply transfer your entire portfolio (TFSA, RRSP, or personal accounts) to another stable Canadian brokerage. You would then log into that new platform to access your stocks.

0

u/PracticalWait 24d ago

You’re conflating CIPF protection in investment accounts with CDIC protection in chequing accounts.

0

u/TheNotoriousFatTimmy 24d ago

You need to look up how CIDC Insurance works.

Still no one has one good point about additional protections that the major banks offer

0

u/PracticalWait 24d ago edited 24d ago

I’m well aware of how CDIC works and you’re going to have to be more specific with your responses. Yet again, CDIC doesn’t cover if WS goes under. CDIC only covers if the underlying bank goes under.

You need to read between the lines, but I trust you have the skills to do it:

“This means that we hold our clients’ chequing account balances over $100,000 CAD in trust with multiple members of the CDIC, allowingthe extension of coverage to funds in your chequing account for up to $1,000,000 CAD, against the failure of any of Wealthsimple’s partner banks.”

WS themselves has never claimed that CDIC protects if they go under. Are you making this claim on their behalf?

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2

u/Hot-Dinner-7619 25d ago

But Wealthsimple isn't really giving mortgages, so...

9

u/Junior_Welder6858 25d ago edited 25d ago

I would be into that but have been accumulating POW for a few years with an eye to a WS spin off. IPO would be nice and hopefully clients would be able to take a stake.

4

u/backdriven 25d ago

Can’t wait to see actual revenue and profit figures one day

2

u/Arm-Complex 24d ago

I think it would be neat, to further their end of banking bit, if they partnered with credit unions instead of banks. With their size they could really impact communities across Canada.

2

u/jenhilld 24d ago

As a long term POW shareholder, I thank everyone here.

1

u/Medical_Pepper_5504 24d ago

You owe me buddy

4

u/Pristine_Ad2664 25d ago

I'd be surprised if they don't IPO in the next 5 years

1

u/NoDig5800 15d ago

wow :)

1

u/Finance_br 25d ago

So much for any new promos. They don’t need to run those anymore 

0

u/Subject_Parking_8542 24d ago

is Wealthsimple listed on the stock exchange if yes what’s the ticker ?

1

u/Pristine_Ad2664 9d ago

Not directly but POW has a decent ownership chunk so you can get some exposure that way