Vanguard vs. Wealthsimple

Attribute	Vanguard	Wealthsimple
Founded	1975	2014
Minimum Investment	$1,000	$0
Management Fee	0.04% - 0.15%	0.40% - 0.50%
Types of Accounts	IRA, Roth IRA, 401(k), etc.	TFSA, RRSP, Personal, etc.
Investment Options	ETFs, Mutual Funds, Stocks, etc.	ETFs, Stocks, Cryptocurrency, etc.

Overview

Vanguard and Wealthsimple are two popular investment platforms that offer a range of services to help individuals grow their wealth. While both companies have their own unique features and benefits, they also have some similarities in terms of their investment options and fees.

Investment Options

One of the key differences between Vanguard and Wealthsimple is the range of investment options they offer. Vanguard is known for its wide selection of low-cost index funds and ETFs, which are ideal for long-term investors looking to build a diversified portfolio. On the other hand, Wealthsimple offers a more hands-off approach with its robo-advisor service, which automatically invests your money in a diversified portfolio based on your risk tolerance and financial goals.

Fees

When it comes to fees, Vanguard and Wealthsimple have different fee structures. Vanguard is known for its low-cost index funds and ETFs, which have some of the lowest expense ratios in the industry. However, Vanguard does charge a commission for trading individual stocks and non-Vanguard ETFs. On the other hand, Wealthsimple charges a management fee for its robo-advisor service, which is a percentage of your assets under management. While this fee is higher than the expense ratios of Vanguard's index funds, Wealthsimple's fee includes all trading costs and rebalancing services.

Account Minimums

Another important factor to consider when comparing Vanguard and Wealthsimple is their account minimums. Vanguard has no minimum investment requirement for its mutual funds, making it accessible to investors of all levels. However, some of Vanguard's ETFs may have minimum investment requirements. On the other hand, Wealthsimple has a minimum account balance of $0, making it easy for anyone to start investing with as little as they want.

Customer Service

Customer service is another area where Vanguard and Wealthsimple differ. Vanguard is known for its excellent customer service, with representatives available by phone, email, and live chat to assist investors with any questions or concerns. Wealthsimple also offers customer support via phone and email, but some users have reported longer wait times and less personalized service compared to Vanguard.

Mobile App

Both Vanguard and Wealthsimple offer mobile apps that allow investors to manage their accounts on the go. Vanguard's app provides access to account balances, performance data, and the ability to trade stocks and ETFs. Wealthsimple's app, on the other hand, is designed for users who prefer a more hands-off approach to investing, with features like automatic deposits, goal tracking, and portfolio rebalancing.

Conclusion

In conclusion, Vanguard and Wealthsimple are both reputable investment platforms with their own unique features and benefits. Vanguard is ideal for investors who prefer a DIY approach to investing and want access to a wide range of low-cost index funds and ETFs. Wealthsimple, on the other hand, is perfect for investors who want a more hands-off approach and prefer to have their investments managed by a robo-advisor. Ultimately, the best choice between Vanguard and Wealthsimple will depend on your individual investment goals and preferences.