Are you looking for an effortless way to handle your investment with one of the big banks and also save on fees? Then the RBC robo advisor i.e., the RBC InvestEase is a winner! You no longer need to have a 6-figure account to get professionally managed investment portfolios.
The RBC InvestEase uses special algorithms to give you hand-picked investment options tailored to your specific risk profile and needs. You’ll also enjoy regular supervision by RBC’s team of financial professionals.
The RBC robo advisor has the backing of Canada’s largest bank- Royal Bank of Canada (RBC), so you’ll be getting arguably the most credible robo-advisor service in Canada from a big bank. This RBC InvestEase review shows how the RBC robo advisor works and how you can start taking full advantage of it today. Let’s see!
RBC Robo Advisor – What is RBC InvestEase?
RBC InvestEase is the Royal Bank of Canada RBC robo advisor platform. Just like the other well-known robo-advisors, RBC InvestEase offers online investment services at a lower cost. It uses your personal information to help you make the most informed investment decision.
To begin, you will be asked some simple questions regarding your savings goals and risk tolerance. Based on your answers, you will be given a range of low-cost exchange-traded funds ETFs that suit your investment profile best for your portfolio.
Blackrock iShares ETFs are used to build the portfolios. When RBC InvestEase was launched, it initially offered ETFs exclusively offered by RBC Global Asset Management. However, this changed in early 2019 when RBC entered into a strategic alliance with iShares with over 150 ETFs and about $60 billion in assets under management.
ETFs offer diversity across sectors, asset types, geographies, and industries. Their fees are lower than those of mutual funds, and they give liquidity, so they are easily bought and sold on the market.
If you are satisfied with the range of ETFs you are offered, you can open an account and transfer your investment funds into it. Then, RBC’s team of accredited portfolio advisors will help you monitor your investments in the background so you can stay on track.
You can also keep track of your progress through your account and reach out to the team if you want to change anything about your progress through your account and contact RBC‘s team to make any changes to your portfolio.
The account types you can invest in include RRSP, TFSA, or a non-registered investment account.
How does RBC InvestEase Work?
The minimum amount you have to deposit to open an RBC InvestEase account is $1,000, and you’ll have to pay 0.5% as a management fee. You’ll also spend an average of 0.11% to 0.30% as Management Expense Ratio MER fees.
Your MER fee depends on your type of portfolio and is calculated and applied to your account monthly. RBC also run occasional promotions so you can save money on your profile.
You can link your bank account to your RBC robo advisor account. That way, you can transfer money into your account easily. It’ll also make it easy for you to set up automatic withdrawals from your bank account so you can keep track of your investments.
To withdraw out of your account, you have to contact the RBC InvestEase customer service team directly. However, your transaction can take up to five business days to be processed because ETFs take a few days to be sold and converted to cash.
RBC Robo Advisor – Overall Features of RBC InvestEase
|Account types||TFSA, RRSP, Non-registered accounts.|
|Minimum investment requirement||$0 to open an account.$100+ to invest.|
|Professional advice||You get access to RBC investease portfolio advisors either by phone or by email.|
|Tax-loss Harvesting||No tax-loss harvesting|
|Transfer fees||They cover up to $200 in transfer fees for transfers of $1000 or more.|
|Automatic portfolio re-balancing||Yes. Whenever your portfolio becomes unbalanced with either too much or too little of an asset class, RBC InvestEase portfolio advisors either buy or sell the needed (ETF) units to return you to your original target allocation.|
|Responsible investing portfolios||Yes|
|Customer Service||Great customer service. You’ll get live access to authorized portfolio advisors by calling 1-800-769-2531 from 8 am to 8 pm ET.|
|Additional Offer||Access to RBC online banking|
RBC Robo Advisor Fees
RBC robo advisor- RBC InvestEase charges a flat 0.50% as a management fee on both responsible and standard investing portfolios. The next layer of the fee is the following weighted-average management expense ratios (MER) of the ETFs in your portfolio:
- Standard portfolio: 0.11% to 0.22% MER
- Responsible investing portfolio: 0.18% to 0.30% MER
The above fees mean your total fees for a standard portfolio can be up to 0.72% i.e. 0.50% + 0.22%. If calculated on a $100,000 account, it results in $720 in fees per year.
On the other hand, for Responsible Investing portfolios, your total annual fees can be up to 0.80% i.e. 0.50% + 0.30%. So on a similar $100,000 account, it will result to $800 per year.
Another fee to note is the $135 transfer fee you’ll have to pay if you decide to move your account to another financial institution other than RBC. However, simply withdrawing money from your account attracts no fees.
RBC Robo Advisor: RBC InvestEase Portfolio Options
RBC robo advisor, i.e., RBC InvestEase offers two portfolio options. They are the Standard Portfolio and the Responsible Investing Portfolio. Let’s discuss them:
The Standard Portfolio
The Standard Portfolio suits people who are looking to minimize fees associated with the investment. It offers:
- Low management fees of just 0.5% annually on your investment balance, together with a 0.11%-0.22% weighted average MER.
- It is built with low cost and passive ETFs and is globally diversified.
- Managed and professionally rebalanced by RBC InvestEase
Your investment portfolio will cover a mix of fixed income, equity ETFs and cash to match your financial goals risk tolerance. The ETFs used in the Standard Portfolios are:
- iShares Global Government Bond Index ETF (CAD-Hedged) – MER 0.40%
- iShares Core Canadian Universe Bond Index ETF – MER 0.10%
- iShares Core Canadian Short-Term Bond Index ETF– MER 0.10%
- iShares Core S&P 500 Index ETF – MER 0.11%
- iShares Core S&P/TSX Capped Composite Index ETF– MER 0.06%
- iShares Core MSCI EAFE IMI Index ETF – MER 0.22%
- iShares Core MSCI Emerging Markets IMI Index ETF – MER 0.26%
The RBC InvestEase Responsible Investing Portfolio
The Responsible Investing Portfolio is for investors who are looking to achieve their future goals and make an impact on the world positively. Responsible investing entails investing in companies with a high ESG (Environment, Social and Governance) rating.
The portfolios are “responsible investing” portfolios and they exclude companies dealing in controversial businesses like tobacco, weapons manufacture, and civilian firearms. It is based on the following:
- Low management fees at only 0.5% per year on your investment balance, and a 0.18%-0.30% weighted average MER.
- It is globally diversified and built with low cost, passive ETFs with a thorough ESG assessment.
- RBC InvestEase manages it and it is professionally rebalanced.
- Strips out companies involved in civilian firearms, tobacco, controversial weapons, and other companies involved in controversial businesses.
These are the ETFs Responsible Investing Portfolios use:
- iShares Global Government Bond Index ETF (CAD-Hedged)
- iShares ESG Canadian Aggregate Bond Index ETF – MER 0.20%
- iShares ESG Canadian Short-Term Bond Index ETF – MER 0.20%
- iShares ESG MSCI Canada Index ETF – MER 0.23%
- iShares ESG MSCI USA Index ETF – MER 0.28%
- iShares ESG MSCI Emerging Markets Index ETF – MER 0.36%
- iShares ESG MSCI EAFE Index ETF – MER 0.34%
Comparison of RBC Robo Advisor vs. Other Robo Advisors
|RBC InvestEase||WealthSimple||Quest Wealth||CI Direct Investing||Just Wealth||BMO Smartfolio|
|MER||0.18%-0.30%||Around 0.2%||0.11%-0.23%||0.25% – 0.35%|
|Management Fees||0.50%||0.40% –|
|0.20%-0.25% per year||0.35% – 0.60%||0.50%||0.40%- 0.70% per year|
DISCOVER: Detailed Comparison of the Best Robo Advisor in Canada [Add link]
[CA to finalize] WealthSimple vs RBC InvestEase: Head-to-Head Comparison
So, we decided to give both a try, invest the same amount of money at the same interval.
[INSERT: screenshot of RBC]
[INSERT: Screenshot of Wealthsimple]
As you van see, although WS indicates less fee, the net amount of money is higher with RBC, whci is what I (and I believe most people care about).
Join me in the WealthSimple vs RBC InvestEase Challenge
Here is how it works:
Open both an RBC InvestEase and WealthSimple aacount today.
Fund both accounts with the same amount each. Whatever you can accord today is fine, a minimum of $1,000 will be ideal. The key is to ensure that you fund both accounts with exactly the same amount.
Continue adding funds to both portfolio at the same interval e.g. bi-weekly or month when you receive your paycheck.
After 6 months compare the $$ earnings on both portfolios. Also, to do after 1 year, 2 years, etc.
Comment on this post with your findings.
I imagine that if a lot of us end up with similar outcomes, we can then deduce a conclusion on which is better in terms of $$ returns.
Pros and Cons of Investing with the RBC Robo Advisor
Let’s discuss the perks and downsides you’ll get when you invest with RBC InvestEase (RBC robo investor).
- You can open an account easily in few minutes with the RBC online application.
- RBC is a household name, so you get reliability and security.
- It costs lesser than a dedicated financial advisor.
- You get access to a team of authorized Portfolio Advisors.
- Highly-competitive fees for a portfolio of any size.
- It boasts of many account types. You can decide to either old your investments in a non-registered or a registered account.
- Low minimum investment of $100.
- The Canadian Investor Protection Fund (CIPF) protects.
- Larger accounts get no tiered-price discount for larger accounts.
Signing up for an RBC InvestEase Account
- Be a minimum of 18 years of age (and 19 in some provinces)
- Canadian citizenship or resident
- You should have a Social Insurance Number that begins with a number from 1 to 7
- Use the account for your investments alone.
How to Apply
- Provide necessary information like your address, name, proof of ID, etc.
- After a proper review, they submitted view the other re ones. Review and submit your application.
- If you meet the eligibility requirements, you can and negotiate the terms of your investments.
RBC Robo Advisor: How Safe is RBC InvestEase?
RBC Direct Investing Inc is the custodial broker for RBC InvestEase, and it holds all your investments with the robo advisor. The Investment Regulatory Organization (IIROC) regulates this custodial broker, and it’s a member of the Canadian Investor Protection Fund (CIPF).
That means RBC Direct Investing Inc. has the responsibility to keep your financial investments safe, maintain your accounts, keep records, report, and settle trades. Should a member organization become insolvent, the CIPF protects investment funds by up to $1,000,000.
Also, RBC InvestEase offers a 100% online security guarantee against direct losses due to unauthorized transactions made through your RBC InvestEase online dashboard. If this happens, you will be compensated 100% for any direct losses in your account.
Frequently Asked Questions on RBC Robo Advisor
Does RBC have robo advisors?
RBC robo advisor is the RBC InvestEase. It is the second full-service robo-advisor launched by a Canadian “Big Five” bank. RBC InvestEase gives clients access to a team of accredited portfolio advisors to answer any questions they might have and offer needed advice or insights.
Is RBC InvestEase good?
Apart from the security and credibility it gets from RBC as a big bank, RBC InvestEase offers clients the chance to grow their portfolios and save on fees as well. It rivals the best robo-advisors in Canada in annual fees and other perks. An example is Wealthsimple.
Who uses robo advisors?
Research shows that only approximative 22% of millennials with $50,000 to $500,000 of investable assets use a robo advisor. Only 10% of millennials with less than $50,000 use a robo advisor. Altogether, only 8% of U.S. households have investments managed by a robo advisor.
How does RBC InvestEase work?
RBC InvestEase is a digital investment management service that makes investment easy and uses expert real advisors. They help you invest your money in a portfolio with carefully-selected ETFs, and the expert advisors supervise them so you can stay on track.
What is a tax-free savings account RBC?
Just as the name implies, a Tax-Free Savings Account (TFSA) is an essential registered investment account that helps you save for any big item or goal tax-free.
How do I choose a robo advisor?
- Know your financial goals.
- Plan how you hope to achieve your goals.
- Understand the robo advisor’s fees and minimum investment requirement.
- Review the credentials of their support staff.
- Check the easy the site is to access.
- Ensure your goals are well aligned.
What is a savings deposit RBC?
Canadians who wish to start saving for retirement can use the RBC Savings Deposit. It is easy to use and you can take advantage of its flexibility. You can also switch your money in your RBC Savings Deposit to a longer-term investment like a mutual fund or a GIC and access it any time you please.
Should I use multiple robo advisors?
Robo advisors’ fee structure is by a=the assets under management. So, it would be better to stick to just one or two robo advisors that suit your financial purpose and need best.
Bottom line – RBC Robo Advisor
Is RBC InvestEase worth your time? Simply yes! Apart from getting a low-cost, data-driven solution to help you achieve your financial goals, the RBC robo advisor also offers new investors the chance to save on fees and get an incredible digital investing experience. The best part is you won’t even have to manage your portfolio.
Regarding fees, professional advisor supervision, design, and investment options, the RBC robo advisor holds a highly competitive spot against the best robo advisors in Canada. We hope our RBC InvestEase review has answered your RBC robo advisor concerns.