Managed portfolios were Wealthsimple's original product and still one of the most common entry points for new investors. I started with a managed portfolio myself in 2018 and switched to self-directed after about a year. Here is an honest look at both sides.
You answer a short questionnaire about your goals, time horizon, and risk tolerance. Based on your answers, Wealthsimple assigns you a portfolio of low-cost ETFs weighted between stocks and bonds. When markets move and your allocation drifts from its target, the portfolio rebalances automatically. You contribute money, the system handles everything else.
| Account Type | Wealthsimple Fee | ETF MER | Total Annual Cost |
|---|---|---|---|
| Basic (under $100K) | 0.5% | ~0.2% | ~0.7% |
| Premium ($100K+) | 0.4% | ~0.2% | ~0.6% |
| Self-directed (XEQT) | $0 | 0.20% | 0.2% |
| Bank mutual fund | N/A | 1.5–2.5% | 1.5–2.5% |
On a $50,000 portfolio the managed fee adds up to about $350 per year total. The same at a bank mutual fund with a 2% MER would be $1,000 per year. The self-directed route with XEQT costs $100 per year. The difference between managed and self-directed is $250 annually — you are paying for the automatic rebalancing and not having to make any decisions.
Managed portfolios are genuinely good for people who don't want to think about investing. If choosing between XEQT and XBAL sounds like more homework than you want to do, managed portfolios remove that decision entirely. Contribute money and ignore the rest.
They are also good for people who know themselves well enough to admit they would panic and sell during a bad market. The automated structure creates psychological distance from daily market movements.
Where I think they are less compelling is for anyone who is comfortable reading one article about ETF investing. The 0.5% saved annually by going self-directed adds up to a real number over 20 or 30 years of investing.
Yes for hands-off investors. At 0.7% total annual cost it is dramatically cheaper than bank mutual funds and requires zero investing knowledge. For people comfortable buying their own ETFs, self-directed at 0.2% total cost saves real money over time.
Yes, anytime. You can open a self-directed account alongside your managed portfolio and shift contributions over gradually. You don't have to sell your managed portfolio to start self-directed investing.
No. It builds diversified ETF portfolios designed to capture market returns at low cost, not beat the market. Over long periods this strategy outperforms most actively managed funds because fees are the main drag on returns.
Related: Best ETFs for Wealthsimple TFSA · Wealthsimple TFSA review · Get the $25 referral code
Use code 7-MDUG, deposit $100+, get $25 cash within 24 hours. Verified October 2026.