RBC Robo Advisor Review 2023: RBC InvestEase Low-Cost Automated Online Investing

Are you looking for an effortless way to handle your investment with one of Canada’s big banks and also save on fees?

If so, RBC Robo Advisor (known as RBC InvestEase) is a great choice!

You no longer need to have a 6-figure account to get professionally managed investment portfolios.

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.

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RBC Robo Advisor, Canada: Quick Overview of RBC InvestEase

Features	Details
Account types	TFSA, RRSP, and 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 deposits	Yes
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.
Fractional shares	No
Additional Offer	Access to RBC online banking

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RBC Robo Advisor Review

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.

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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 runs 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 from 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.

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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 in $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. 

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RBC Robo Advisor: RBC InvestEase Portfolio Options

RBC robo advisor (that is, 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%

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Comparison of RBC Robo Advisor vs Other Robo Advisors in Canada

	RBC InvestEase	WealthSimple	Quest Wealth	CI Direct Investing	Just Wealth	BMO Smartfolio
Minimum Balance	$100	$1	$1,000	$1,000	$5,000	$1,000
MER	0.18%-0.30%	Around 0.2%	0.11%-0.23%			0.25% – 0.35%
Management Fees	0.50%	0.40% – 0.50% yearly	0.20%-0.25% per year	0.35% – 0.60%	0.50%	0.40%- 0.70% per year

SEE >> In-Depth Comparison of the Best Robo Advisors in Canada

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Pros and Cons of Investing with RBC Robo Advisor

Let’s discuss the perks and downsides you’ll get when you invest with RBC InvestEase (RBC robo investor).

Pros

• You can open an account easily in a 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 hold your investments in a non-registered or a registered account.
• Low minimum investment of $100.
•  The Canadian Investor Protection Fund (CIPF) protects.

Cons

• Larger accounts get no tiered-price discount for larger accounts.

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Signing up for an RBC InvestEase Account

Eligibility Criteria

• 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 some personal information such as your name, address, and investment goals.
• You will get matched to an investment portfolio of exchange-traded funds (ETFs) that aligns with your investment goals and your risk tolerance.
• Choose and open an RBC InvestEast account. The options available are – RRSP, TFSA, and non-registered investment account.
• That’s it!

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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. 

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FAQs on RBC InvestEase: Big Bank Robo Advisor

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Final Thoughts: RBC Robo Advisor, Canada

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.