Here's our investment management fee breakdown (effective May 1, 2018):
We calculate the fee on a daily basis by dividing the annual fee by 365 days and applying it to the closing market value of your portfolio on that day. These daily portions are added together and charged to your account monthly.
In short, our fee is quoted annually, calculated daily, and applied monthly. The end result for you, as a Wealthsimple client, is that your account will see a small charge each month.
One thing to note is that these fees do not include the management fees charged by the managers of the investment funds that you hold. These fund management fees are referred to as the management expense ratio (the “MER”) and are expected to be about ~0.2% annually.
In more complex terms, our investment management fee is amount equal to the aggregate of 1/365th of the applicable percentage, or 1/366th in any leap year, (as set out in the chart above) multiplied by the market value of the account as of the close of trading. The fee will accrue and become due and payable on the last day of every calendar month and shall be collected by the Portfolio Manager directly from the account assets. If you close your account, withdraw the entire balance of your account, or if you or Wealthsimple terminates the Discretionary Management Agreement, the accrued fee shall be due and payable immediately.
Please note: These are our standard fees. If you're a client, please refer to your Investor Policy Statement for the exact fees you're paying.
Wealthsimple will not be liable for any fees or costs charged by a manager of an investment fund, such as an exchange traded fund, that the Portfolio Manager invests in on your behalf. Such fees or costs will be paid, directly or indirectly, from the applicable account pursuant to the terms of investment of each applicable Investment Fund.
Are there any other fees beside your management fee?
We don't charge anything on top of our management fee. The only other fee to consider is the ETF management fee, charged by ETF providers fee for the work they do to maintain the ETFs in your portfolio. It isn't charged by Wealthsimple and won't be deducted directly from your Wealthsimple account, but will be an adjustment to the prices of your ETFs.