Wealthsimple vs. Justwealth 2024 Comparability

Justwealth and Wealthsimple are the #1 and #2 choices on our newly-updated finest robo advisors in Canada for 2024 checklist.

As a result of Wealthsimple is extra of a tech-first firm, and Justwealth is extra of an investing-first firm, the Wealthsimple vs Justwealth battle comes all the way down to what you most extremely prioritize in your robo advisor.

Additionally, I ought to level out proper off the bat that each Wealthsimple and Justwealth aren’t huge followers of the time period “robo advisor.” They like one thing like, “automated wealth administration” or a title that extra precisely describes what it’s they do in comparison with one among Canada’s on-line brokerages.

It’s additionally price noting you can attempt each robo advisors out with a reasonably small amount of cash, (snagging the present wonderful promotion from Justwealth under) after which resolve from there which platform you want finest. Learn on for a detailed comparability of charges, efficiency, monetary recommendation, safety, account choices, and consumer expertise.

JustWealth vs. Wealthsimple: Fast Comparability

For those who’re merely on the lookout for a fast visible side-by-side comparability for Justwealth and Wealthsimple, we’ve received you. The chart under incorporates all the fundamental info from our complete evaluation.

If you would like an in-depth standalone evaluation of every robo-advisor with extra context and all the main points, try our Justwealth Overview and our Wealthsimple Overview.

Wealthsimple vs. Justwealth: Safety and Security

Each Wealthsimple and Justwealth take their obligations critically. Their custodial organizations (the businesses that maintain your funds) are regulated by the Funding Trade Regulatory Group of Canada (IIROC) and their accounts are protected by the Canadian Investor Safety Fund. They each use high-level encryption to guard your info.

Mainly, your cash and your knowledge are equally protected with both robo-advisor. These firms have been round for years and are each regulated and reliable.

Wealthsimple vs Justwealth: Charges and MER

Robo advisors all have two layer of charges:

1) The amount of cash they cost you for his or her companies.

2) The amount of cash that the underlying ETFs will cost you with a view to spend money on them. This quantity is sort of all the time known as a Administration Expense Ratio (MER).

Generally you’ll see these two layers of charges added collectively and known as the MER. Different instances each Justwealth and Wealthsimple will report solely that prime layer of charges – which isn’t actually dishonest, in that they solely get to maintain that cash.

Each Wealthsimple and Justwealth have similar charge ranges of 0.40%-0.50% on the subject of that prime layer of charges. Whereas the worth of the second layer of charges will change barely relying on the precise portfolio you select. 

Winner: Draw

Justwealth vs Wealthsimple: Efficiency

ting probably the most apples-to-apples comparability between the 2 once you examine efficiency. Under reveals the corresponding head-to-head comparability for every of Wealthsimple’s most important portfolio choices vs the Justwealth choice over the past 5 years.

As you may see, Justwealth is fairly dominant on this class.

5-Yr Comparability of Annualized Funding Returns Ending June thirtieth, 2024

	Justwealth	Wealthsimple
Conservative Portfolio 5-Yr Common Annual Return	5.85%	1.68%
Balanced Portfolio 5-Yr Common Annual Return	7.79%	4.29%
Progress Portfolio 5-Yr Common Annual Return	8.60%	6.53%

That 2-4% distinction in efficiency is totally huge. I’d argue that even a .50% distinction can be fairly huge when you concentrate on how briskly that may compound over time. Wealthsimple has made some very questionable funding choices on the subject of their fastened revenue merchandise, and this has led to vital underperformance – no approach round that actuality.

Huge Winner: Justwealth

Justwealth vs Wealthsimple: Monetary Recommendation

Whereas each of those robo advisors provide some type of monetary recommendation through on-line chat, telephone calls, or chat classes utilizing Zoom (or different video platforms), the massive distinction right here is that each single Justwealth buyer is assigned a customized monetary advisor once they enroll. That time particular person provides a single level of contact all through your funding journey, and is one other huge benefit for Justwealth.

It’s additionally vital to say that each of those main robo advisors are legally categorized as portfolio managers. Which means they’ve fiduciary responsibility to behave in your finest curiosity. That’s an important distinction from the “monetary advisors” at your native financial institution, credit score union, or strip mall funding firm.

It signifies that each Wealthsimple and Justwealth could be held legally accountable for providing you with recommendation that advantages their firm at your expense. That very same commonplace is just not met by firms who shouldn’t have a fiduciary duty. Ensure that to ask about this if you happen to’re nonetheless not sure, because it’s presumably crucial element when discussing the very best monetary advisors in Canada and the very best wealth administration firms in Canada.

Winner: Justwealth

 Account and Portfolio Choices

Each Justwealth and Wealthsimple provide the complete vary of Canadian funding accounts together with:

• RRSP
• Spousal RRSP
• TFSA
• Non-Registered account
• RRIF
• FHSA
• RESP
• LIRA
• LIF

*You may also open a US greenback account for a few of these choices. 

One space the place Justwealth has a little bit of a bonus is of their Schooling Goal Date RESP Portfolios. They’re the one Canadian robo advisor to supply this distinctive product. They’re designed to develop together with your youngster and robotically rebalance because the goal date approaches. Which means by the point your youngster graduates, the cash will likely be prepared for them. One other perk of the Justwealth RESP is that there isn’t any minimal requirement to open this sort of account.

Now, Wealthsimple has a bonus on the subject of accounts outdoors the scope of a robo advisor. For instance if you wish to commerce crypto, Wealthsimple can try this – however Justwealth can’t. Wealthsimple Tax additionally provides an attention-grabbing add-on service that Justwealth doesn’t have the equal of.

To date, I’d say that on the subject of account and investing choices it appears to be like fairly shut, with a slight edge to Wealthsimple. However then we have now to consider precise investable portfolios that we are able to put our cash into inside these accounts.

Wealthsimple has three commonplace portfolios, plus SRI and Halal portfolios.

Justwealth however has over 80 portfolios to select from – by far probably the most on the subject of Canadian robo advisors.

Not solely that, however all the different huge robos (together with Wealthsimple) have some type of a deal or curiosity with particular ETF firms. That signifies that even when the ETF isn’t actually the proper match for what they need publicity to in a portfolio – they’re going to make it match. In the meantime, an unencumbered Justwealth is free to pick whichever ETF provides probably the most benefits a given time.

Plus, if I’m being trustworthy, I’ve a private bias towards investing in gold and investing in cryptocurrency. Wealthsimple actually pushes these merchandise and I feel it utterly goes towards the founding ideas of the corporate.

Winner: Justwealth

Wealthsimple vs Justwealth: Consumer Expertise

Each Wealthsimple and Justwealth have related sign-up processes.

You begin by inputting your private info, together with your social insurance coverage quantity. You reply a questionnaire about your funds and funding objectives. You then’re matched with a portfolio that matches your objectives, timeline, and degree of danger aversion.

The place Wealthsimple actually shines is how a lot tech work they put into their product. Their web site is gorgeous, and their app has lengthy been the very best one among the robo advisors. I’d argue that whereas the Justwealth customer support has larger scores amongst our readers, the standard of Wealthsimple’s cell app offers it an edge on this space – but it surely actually comes all the way down to what you need out of your robo.

If you would like a slick on-line expertise, then Wealthsimple has you coated. For those who worth a immediate e-mail reply or a brief dialog with a customized monetary advisor, then Justwealth can be the higher wager.

Slight Winner: Wealthsimple

Account Minimums and Particular Promotions

Whereas that is in all probability the least vital comparability level when selecting an investing product for the long-term it’s a official level of distinction.

Wealthsimple actually promotes the truth that anybody can get began with them, even when they’ve just one greenback.

Justwealth however goes to require you to deposit $5K with a view to get began. I’d argue in case you have lower than that, it ought to simply be in a low danger funding anyway, however that’s simply me. Now, Justwealth does have two exceptions to their 5K rule: The FHSA and the RESP. Clearly they’re making an actual effort right here to draw younger individuals! There aren’t any minimums to open an FHSA or an RESP with Justwealth.

Now, on the subject of promotions, Justwealth clearly has the sting, as they’re presently providing as much as $500 to get began with them, whereas Wealthsimple simply has their traditional fifty greenback promotion happening. Click on under to make the most of the brand new Justwealth deal.

Slight Winner: Justwealth

So Which One Is Higher for Me?

or me, Justwealth wins the battle on the again of the next benefits:

1) Confirmed to be higher buyers.

2) The benefit of getting an outlined contact particular person as your long-term advisor is very nice.

3) 80 completely different portfolios to spend money on is by far probably the most amongst Canadian robo advisors.

4) I really like the target-date RESP accounts. I like to recommend them to a lot of my buddies that don’t wish to open an internet brokers account and have a look at Canadian ETFs.

That stated, as Canada’s largest robo advisor (and largest advertising spender) I can see the argument there as effectively. You possibly can learn our full-length Wealthsimple evaluation and Justwealth evaluation with a view to actually dig into the very best match for you.