One of the winning features I love about Questwealth is the Socially Responsible Investing (SRI) portfolio. Their Socially Responsible Portfolios, or SRIs, invest your money in socially responsible companies in North America and around the world, as well as Canadian bond ETFs for balance and income.
Portfolios include Canadian, US and international stocks, bonds and cash. These portfolios consist of low-cost ETFs with variable allocation depending on profile and investment requirements. All portfolios are mutual funds with a management expense ratio of 1.07%.
In January 2021, they launched their Tangerine Global ETF portfolio. Canadian Robo Advisors allows investors to create a complete ETF portfolio online at a very reasonable fee.
Questwealth Portfolio currently offers some of the lowest fees on the market for Canadian Robo-advisors. What’s more, Questwealth Portfolios offers the lowest admin fees for Robo-advisors, which some people are sure to love.
Suppose you are looking for an inexpensive and straightforward investment strategy that does not require much time or attention. In that case, Questwealth Portfolios is one of the best (and cheapest) Robo advisors in Canada. Questwealth Portfolios is a great Robo advisor for online investors in Canada with low fees, SRI, excellent customer service, and an easy-to-use website.
QuestWealth Robo-Advisor Review
Questwealth Portfolios are managed by Questrade Wealth Management Inc., a wholly-owned subsidiary of Questrade Financial Group Inc. Questwealth is part of discount online brokerage Questrade Wealth Management.
As you may recall from the Questwealth Portfolios review earlier, Questwealth Portfolios is not a traditional Robo-adviser as your portfolio will be actively managed, whereas most Robo-advisers manage accounts passively. However, some people will like the idea of having a reasonably aggressive management style and passive ETFs in their portfolios.
However, for my money, I will end up with a Robo advisor that has almost the same fees, no minimum starting amount, better features, and *best* an index-based passive investing philosophy. With low management fees, trusted experts behind the companies, and a solid track record, Robo advisors, are a wise investment option for those looking for a “set it and forget it” strategy.
Most Robo-advisers in Canada passively manage your investments, which means they do not actively trade ETFs in your portfolio. Depending on the Robo-advisor, you can choose to keep your investments such as RRSP, TFSA, RESP, etc. BMO Smartfolio is offered by the Bank of Montreal so that you can take advantage of their outstanding team of advisors and ETF products. Questwealth offers its clients the best of both worlds as they are a Robo-advisor investing platform and employ human portfolio managers to monitor and manage accounts.
Formerly known as Portfolio IQ, Questwealth Portfolios is best suited for clients who want a passive investment management approach as they offer many low-cost ETF portfolios. While Questwealth’s low fees give the impression of passively investing in indices, these portfolios are actively managed by Los Angeles-based sub-adviser, One Capital Management LLC. In other words, they are run by registered portfolio managers (with over 100 customer service agents) who watch the markets and then adjust the underlying assets as needed.
Each investment profile includes five to seven low-cost ETFs. Unlike most other robot-advisor platforms that rely entirely on algorithms to monitor and rebalance portfolios, Questwealth employs human advisors to manage portfolios. In addition, Questwealth offers five predefined wallets that you can choose from based on your risk tolerance. Questwealth also provides five tiers of socially responsible investing, like these portfolios, for investors who want to align capital and value. And while all of these wallet options are good, unfortunately, they don’t offer much customization other than these.
You can get wallets for less than half of what other providers charge. When you invest in Questwealth, one of two pricing structures applies to you. One is a management fee, which is a small percentage of your account each year, and the other is a management fee ratio (MER) used to manage your investments on an ongoing basis. But you’ll get the same low management fee as all other portfolios with slightly higher MERs (between 0.21% and 0.35%).
However, MER fees depend on your portfolio and can be as high as 0.35% with SRI (socially responsible investing). With 0.40%-0.50% of your portfolio value charged in fees each year, that’s nearly double the cost of investing with Wealthsimple compared to Questwealth. Therefore, minimizing commissions when investing is extremely important because they reduce your profits and can reduce the performance of your portfolio by tens or even hundreds of thousands of dollars over time.
Our Verdict 9.8/10 Our Rating Questwealth Robo-Advisor Questwealth is a hybrid Robo-advisor product that actively manages a diverse portfolio, enabling Canadians to create substantial wealth for themselves. Like any other major Robo-advisory bank, Questwealth is underwritten by the Canadian Investor Fund (CDIF) and the Investment Industry Regulatory Organization of Canada (IIROC). In addition, Questwealth Portfolios (Questrade) also offers free private insurance, $10 million in additional protection, and last but not least, Questrade is a member of the IIROC (Investment Industry Regulatory Organization of Canada).
Your Questwealth Portfolios account is insured by the Canadian Investor Protection Fund (CIPF), which means that your investment is protected up to $1 million in the event of company bankruptcy. So if by chance, Questwealth goes bankrupt (highly unlikely), your assets are protected up to $1 million. In addition, Questwealth Portfolios will give you TFSA, RRSP, cash and corporate account coverage. But if Quesltwealth portfolios don’t suit you, you might want to consider Wealthsimple.
Both Wealthsimple and Questwealth provide investors with portfolios of stock and bond ETFs. As well, both offer inexpensive auto-investment options for people who want to access the stock market but don’t want the headache of managing their portfolio. As a result, they both provide low-cost automated investment solutions. Offering low commissions, SRI, exceptional customer service and an easy-to-use website, this is a great Robo advisor for online investors in Canada.
Questrade recently introduced and re-introduced its robot-advised investment service, Questwealth Portfolios, and among other things, it now offers even more ridiculously low fees. As a leader in the online DIY investment world, Questrade has expanded its services to include actively managed portfolios. Interestingly, Questrade now offers socially responsible investment (SRI) versions of its five portfolios. And as I briefly mentioned above, their robotic service, formerly known as Portfolio IQ, has been rebranded and relaunched under the new registered name of Questwealth Portfolios.
Their streamlined website provides passive investors with all the critical information they need to know about their funds without bogging them down in complicated investing jargon. In addition, the service provides investors with a platform to build and manage their portfolios using single stocks, ETFs, options, forex, CFDs, mutual funds and more. You can use this platform to try DIY investing and buy individual stocks, mutual funds, ETFs, currencies, options, and more. Novices can use a straightforward interface, low fees, and professionally managed portfolios to simplify investing. In contrast, seasoned investors interested in buying their own ETFs, stocks, bonds, or other assets can take advantage of a do-it-yourself approach, where you can enjoy some of the lowest transaction fees.