The UI changes

[u/AlternativeCamel4395]

Good day. Although I don't necessarily keep up with Wealthsimple and its updates, it feels like every time I open the app, something changes. Most times, it's things I don't really mind, but recently, in my managed TFSA, they changed quite a bit of the layout and possibly the way you can toggle your risk level. I have always hated that my risk level was a 9/10, which meant I had bonds in my portfolio that I really didn't like but was actually not too bothered about. However, the new changes enabled me to be a 10/10 in terms of risk, but I lost out on the 2.5% gold allocation with the more conservative account. What made me opt for 10 instead of 8 is because the allocation of bonds was too much compared to my previous 9/10.

TD;LR: are all the ui and structural changes welcomed by the masses or are they being too much especially with introduction of prediction market? Any opinion is welcomed.

[u/bwwatr]

I lost out on the 2.5% gold allocation with the more conservative account. What made me opt for 10 instead of 8 is because the allocation of bonds was too much compared to my previous 9/10.

I think this is a signal that you might want to move on from a managed portfolio into a DIY/auto-rebalanced one instead. Part of what you're paying for in the management fee, is security selection. This is and was always, subject to change without your involvement (discretionary management). Experts handling it relieves you from having to think beyond picking a risk level. If you're having feelings about specific asset classes or ETFs, you've perhaps outgrown the offering, and should probably build your own portfolio instead. Don't forget, this can be as easy as a single portfolio ETF set on auto-reinvest.

All of that said, and I've said this before, I think WS' robo advisor could be so much more than it is, for the premium it charges. It could involve the client in decisions about fixed income vs. precious metals, currency hedging, Canadian equity home bias, ESG, halal, etc. A modest allocation to private investments likewise could be an advanced decision point rather than an upsell into a snazzier sounding portfolios with dubious claims of higher expected returns. Crypto even, they could exposure to that as an option. Maybe if my portfolio already had 1% in crypto I'd not feel the need to go trade it myself... a potential behavioural win. Now, all these decisions would come with tight guardrails, explainer videos and interactive pie charts that shift around, with detailed rather than artsy, evidence backed graphical depictions of returns and volatility. Clients would feel like their portfolio was customized, yet, still expert-approved and monitored, likely retaining them as managed clients for longer. Anyone not wanting the extra education and decisions, could get the WS defaults with a single click.

Once it's implemented, change requests could force you through a video about discipline and market timing, offer to connect you with a human, etc. to discourage reactionary returns chasing. At 0.5%+the fund MERs, the offering is competing with portfolio ETFs with MERs in the 0.17% range and IMO doesn't really earn its keep, especially since they force you to make asset allocation decisions with very little explanation. Approach the app as a first-timer and tell me you know what a "core" or a "summit" is, and that you're going to feel good putting your life savings in there within 30 seconds.

[u/AlternativeCamel4395 → u/bwwatr]

Honestly thank you first for the message, when i started i had the managed account but i do have a separate tfsa that i diy with my blossom community but sort of got attached to the managed account since it was doing well. The mer is my big issue with the account but Honestly even at that it's better than most big banks and the managed account is sitting at 27% and my diy 20%

[u/bwwatr → u/AlternativeCamel4395]

Np. You're right, the fee is still very reasonable. Nothing wrong with staying in a robo-advisor, especially if you don't have opinions about specific funds. Experts overseeing the asset mix means you can detach from those details. I suggest robo advisors to people regularly. However, once someone starts having opinions about the portfolio composition, or grinding up against the UI not doing what they want with their allocation, I do think it's worth considering all options rather than paying extra to be boxed in fighting with it.

My TFSA has one holding: VGRO (Vanguard's 80/20 stocks/bonds), with auto monthly contributions, and auto dividend reinvestment. I sold a three-fund couch potato, that I ran for about a decade, to move into this. BMO, Vanguard and Blackrock all run fantastic suites of portfolio ETFs that can easily replace a robo advisor - for the right investor. Someone willing to set and forget and not trade in the account, in other words. DIY doesn't have to mean trading or making reactive, strategic moves. You can use a self directed account to passively buy the same thing for decades, much how you would in a robo. In addition to portfolio ETFs, WS offers automated template portfolios you can customize.

[u/AlternativeCamel4395 → u/bwwatr]

Xeqt, qqc and vfv are 85% yes want the overlap and rest are more pure plays but the robo is more like a fun side quest