The Wealthsimple Conservative portfolio is our low risk portfolio. In other words, we built this portfolio with the goal of limiting short term fluctuations while still trying to generate returns that can modestly outpace the rate of inflation. The Conservative portfolio would have declined by only about 10% in the 2008 downturn.
Our conservative portfolio has 35% exposure to equities and 65% exposure to fixed income or bonds. It is invested in the following funds:
|Purpose Core Dividend||40 North American dividend-paying companies||7.50%|
|iShares Core MSCI EAFE||IEFA||Large, mid, and small cap stocks in developed Europe, Australasia and the Far East||5%|
|iShares Core MSCI Emerging Markets||IEMG||Large, mid, and small cap stocks in more than 20 emerging markets||0%|
|iShares Core S&P/TSX Capped Composite Index||XIC||250+ Canadian equities representing 95% of the Canadian equity market||7.50%|
iShares Core Canadian Short Term Corporate + Maple Bond Index ETF
|XSH||Exposure to variety of short term Canadian and U.S. corporate debt securities||42.50%|
|Purpose Duration Hedged Real Estate||PHR||Hedged exposure to 30 retail, residential, commercial, specialized and diversified real-estate companies||7.50%|
|Vanguard Total Stock Market||VTI||3800 large, medium, small and micro-cap companies mirroring the US equity market||7.50%|
|BMO High Yield US Corporate Bond Hedged to CAD Index||ZHY||Exposure to variety of high yield American corporate debt securities||7.50%|
|BMO Mid Federal Bond Index||ZFM||Mid term debt securities issued or guaranteed by the Government of Canada||15%|
This portfolio is ideal for the following situations:
- If you have a goal (buying a home, saving for a vacation, etc) that's fairly short-term (3-5 years) and are only comfortable with small fluctuations in your account.
- If you're retired and are only comfortable with small fluctuations in your account.
- If fluctuations in your account make you very nervous but you're okay with a low level of fluctuations to try to grow the funds by more than what a savings account can generate.
If you feel like your accounts should be more conservative than they are at the moment, you can submit a request to change it by logging into your profile on the web. Click your name in the top right-hand corner > Settings > Account > Investment profile. In the Investment profile box there will be a link to a short questionnaire asking about the change you'd like to make. Our Portfolio Managers will review your request and will reach out via email within 1-2 business days to help make sure that it's suitable for your situation.