The Wealthsimple Balanced portfolio is our medium risk portfolio. In other words, we built this portfolio with the goal of balancing the growth and the protection of your capital. Over the long-term, we don't anticipate this portfolio to have the highest expected returns as markets trend upwards over a long period of time, but it will also provide a fair amount of cushion (or capital protection) during a market decline. That said, this portfolio can still suffer short-term losses during a broad market decline (e.g. a ~20% losses in 2008).
Our balanced portfolio has 50% exposure to equities and 50% exposure to fixed income or bonds.
Your non-registered, joint, and corporate accounts will be invested in the following funds:
|Vanguard Total Stock Market||VTI||3,800 large, medium, small and micro-cap companies mirroring the US equity market||10%|
|iShares MSCI Min Vol Global ETF||ACWV||Minimum volatility large, mid, and small-cap stocks in developed Europe, Australasia, and the Far East||10%|
|iShares MSCI Min Vol Emerging Market Fund||EEMV||Exposure to 300+ emerging market equities with minimum volatility characteristics||15%|
|iShares Core MSCI EAFE CAD||XEF||Large, mid, and small-cap stocks in developed Europe, Australasia, and the Far East in Canadian dollars||10%|
|Shares Core S&P/TSX Capped Composite Index||XIC||250+ Canadian equities representing 95% of the Canadian equity market||5%|
BMO Discount Bond Fund ETF
|ZDB||Exposure to a mix of Federal, Provincial, and corporate Canadian debt with maturity >1 year but a lower weighted average coupon. This reduces tax implications in non-reg accounts||15%|
|Mackenzie US TIPS Index ETF||QTIP||Exposure to inflation-protected US government bonds||15%|
|BMO Long Federal Bond Index||ZFL||Long term debt securities issued or guaranteed by the Government of Canada||20%|
This portfolio is ideal for the following situations:
- If you have a goal (buying a home, saving for a vacation, etc) that's about 5-10 years away and are comfortable with some fluctuations in your account.
- If you're retired and are comfortable with some fluctuations in your account.
- If you have a longer term goal (10+ years) and are willing to take some risks to ensure your funds grow adequately over time but aren't comfortable with very large fluctuations in your account.
- If you have a longer term goal (10+ years) and are willing to take some risks to ensure your funds grow adequately over time but haven’t had experience with investing or account fluctuations before. This is ideal for first time investors.
If you feel like one of your accounts should be in the Balanced portfolio but isn't at the moment, you can submit a request to change it by clicking on the account you want to change and using the settings on the left-hand side.