Within Wealthsimple’s managed investing accounts there is a graph that displays hypothetical future projections of performance.
The graph shown is for illustrative purposes purposes only and does not represent the actual returns of an account. The projected returns are simulated based on a projected cash rate of 3.5%, plus excess returns ranging from 2.8% to 4.7%, after deducting Wealthsimple’s management fee of 0.50% and assuming average ETF MER of 0.15%. The specific excess return depends on the risk level of your account.
The hypothetical projections in this graph are based on your initial deposit, the amount you plan to save each month, and the assumed rate of return based on the risk level of your account.
The “likely” section of the graph represents a 50% confidence interval, while the “less likely” section represents a 90% confidence interval. These projections are based on forward-looking Sharpe ratios, asset class volatility, and historical long-term correlations for each portfolio class. They do not take into account sales, redemptions, transfers, optional charges, or income tax payable by clients, which would reduce the returns.
Please note that all the information provided is hypothetical and for illustrative purposes only. It is not intended as investment advice or constitute a recommendation. Simulated performance does not necessarily indicate future results, and actual allocations and performance may differ. All investments involve risk. For more information about our products, investment decisions, fee schedules and disclosures, please visit wsim.co/disclaimers.