The Wealthsimple Growth SRI portfolio is our high risk portfolio with a focus on Socially Responsible Companies. In other words, we built this portfolio with the goal of maximizing the long-term growth of your account while ensuring we align your investments with your ethics and values. We expect this portfolio to have the highest returns as markets trend upwards over time (10+ years), but to also suffer the largest short-term losses during a market decline (e.g. a ~40% loss in 2008).
Warning: If you'd like to aim for the highest returns over the long-term, you need to be comfortable knowing that your portfolio can be subject to the largest losses during a market downturn. You should only have this risk profile if you're certain that you wouldn't panic and sell when and if markets drop significantly. Research shows that any investors, especially those new to markets, overestimate their risk tolerance. That's why we typically don't recommend a growth portfolio if you are newer to investing.
Our growth SRI portfolio has 80% exposure to equities and 20% exposure to fixed income or bonds. It is invested in the following funds:
|iShares MSCI ACWI Low Carbon Target ETF||CRBN||Global stocks with a lower carbon exposure than the broader market.||27.5%|
|iShares Jantzi Social Index ETF||XEN||Canadian stocks, excluding companies with a poor social-responsibility record based on broad ESG criteria.||22.5%|
|Vident International Equity Fund||VIDI||Developed and emerging economies with sustainable growth, based on criteria such as human rights and low corruption.||15%|
|PowerShares Cleantech Portfolio||PZD||Cleantech innovators in the developed world.||15%|
|BMO Mid Federal Bond Index||ZFM||Mid term debt securities issued or guaranteed by the Government of Canada||20%|
This portfolio is ideal for experienced investors with the following situations:
- If you have a long-term goal (buying a home, retirement, inheritance, etc) that's 10+ years away and are comfortable with seeing very large fluctuations in your account.
- If you're retired, have a pension or a stable source of income, and are comfortable with large fluctuations in your account. Note: if you're retired and your investments are your primary source of income, a growth portfolio is most likely not your best option.
- If you're investing a small amount of your total assets with Wealthsimple and a large loss for that amount would not affect your ability to achieve your goals.
- If you're investing for a medium-term (~5 year) goal, prefer focusing on growing your money aggressively, but are willing to accept that you may have to push back the objective if markets drop significantly. A flexible time horizon can allow you to take more risks.
Note: The SRI version of our growth portfolio has a fee that is slightly higher than our standard growth portfolio (0.43% instead of 0.10%).
If you feel like one of your accounts should be in the Growth portfolio but isn't 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.