What it is
Wealthsimple offers a socially responsible investing (SRI) portfolio through its robo-advisor platform, available in Canada and select markets. The SRI portfolio uses ETFs screened for ESG criteria, excluding companies involved in fossil fuels, tobacco, and weapons while overweighting those with strong environmental and social performance. Management fees start at 0.5% with no minimum investment.
Why we picked this
For younger investors who want ESG alignment without the complexity of building their own portfolio, Wealthsimple's SRI option removes the friction entirely. No research required, no minimum balance, and the fee structure is competitive with traditional robo-advisors. It proves that responsible investing does not have to be complicated or expensive.
Key takeaways
- The SRI portfolio uses ETFs from providers like iShares and BMO that apply negative screening (exclusions) and positive screening (ESG leaders).
- Wealthsimple manages over $30 billion CAD in assets, with SRI portfolios representing a growing share as younger demographics demand alignment.
- Historical performance of the SRI portfolio has tracked closely with conventional portfolios, challenging the myth that ESG investing sacrifices returns.