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 portfolio will be invested in the following funds:
|Purpose Core Dividend||40 North American dividend-paying companies||10%|
|iShares Core MSCI EAFE||IEFA||Large, mid, and small cap stocks in developed Europe, Australasia and the Far East||7.50%|
|iShares Core MSCI Emerging Markets||IEMG||Large, mid, and small cap stocks in more than 20 emerging markets||5%|
|iShares Core S&P/TSX Capped Composite Index||XIC||250+ Canadian equities representing 95% of the Canadian equity market||7.50%|
|iShares Canadian Short Term Corporate + Maple Bond Index ETF||XSH||Exposure to variety of short term Canadian corporate debt securities||30%|
|Purpose Duration Hedged Real Estate||PHR||Hedged exposure to 30 retail, residential, commercial, specialized and diversified real-estate companies||10%|
|Vanguard Total Stock Market||VTI||3800 large, medium, small and micro-cap companies mirroring the US equity market||10%|
|BMO High Yield US Corporate Bond Hedged to CAD Index||ZHY||Exposure to variety of high yield American corporate debt securities||5%|
|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 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 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.