Risk questionnaire
Users answer questions about goals, time horizon and comfort with market fluctuations.
Canadian investing technology
How Automated Portfolio Services Reduce Investing Complexity
Robo-advisors combine online onboarding, diversified investments and automated portfolio management in one service.
Core features of automated investing
Most robo-advisors follow a similar structure, although fees and portfolio methods differ.
Portfolio selection
The platform assigns a diversified portfolio, often built with exchange-traded funds.
Automatic rebalancing
The service adjusts holdings when the portfolio moves away from its target mix.
Dividend reinvestment
Cash distributions may be automatically reinvested.
Account support
Platforms may support registered and non-registered Canadian account types.
Ongoing fees
Users typically pay a management fee plus the costs of the underlying funds.
Questions to ask before choosing a service
A lower advertised fee does not automatically make one service the best choice.
Total cost
Management fee, fund MERs, currency conversion and other charges.
Portfolio method
Passive or active management, diversification and rebalancing policy.
Account types
TFSAs, RRSPs, RESPs, RRIFs and non-registered accounts.
Human support
Whether the service includes access to advisors or only digital support.