Top Robo-Advisors for Socially Responsible Investing in Canada

In recent years, the investment world has seen a significant shift to ethical and socially responsible investing (SRI). Canadian investors are looking for opportunities that fit with their personal values, which include environmental sustainability, social justice, and corporate governance. Canada has seen the rise of Robo-advisors as a convenient and inexpensive solution to investing with SRI options, so investors can be guided automatically to portfolio management tailored to socially responsible investors.

In this article, we look at the top robo advisors in Canada offering SRI options to help you make informed decisions about your investments.

What is Socially Responsible Investing (SRI)?

SRI is a way to invest that considers both the financial and the social and environmental effects of the companies you choose. With this method, investors can invest in companies that share their beliefs and may still be earning competitive returns. The increase in awareness about global warming, social inequality, corporate unaccountability, and the overall increase in demand for products that consider SRI has become a mainstream consideration for many investors.

What are Robo-Advisors?

A robo advisor is a digital platform that offers automated, algorithm-driven financial planning services with little or no human interaction. They use online surveys to collect information from clients about their financial situation and goals, and they use the data to provide advice or automatically invest client assets. Advantages of robo advisors are:

• Lower Fees: Automated services make operations more efficient, which leads to less expensive fees than those charged by traditional advisors.
• Accessibility: With low entry costs, robo-advisors make it possible for more people to invest.
• Convenience: It is easy for users to open accounts and control their portfolios using simple and intuitive online tools.
• Personalization: A lot of robo-advisors allow you to build a portfolio that reflects your beliefs and values.

To learn more about evaluating these platforms, read our guide on how to pick the best robo-advisor in Canada.

The Best Robo Advisors with SRI in Canada

Here is an in-depth summary of the Canadian robo-advisors providing SRI options:

1. Wealthsimple Invest

Wealthsimple is Canada’s biggest robo-advisor, with over CAD 50 billion in assets under management as of September 2024. It helps you create a diversified portfolio that includes low-cost ETFs. Wealthsimple’s SRI portfolios include companies with less carbon emissions, new environmentally friendly technologies, and strong ethical values. These portfolios are built to support investors’ values and still provide diversification.

Wealthsimple charges a 0.5% management fee for accounts under 100K and a 0.4% fee for accounts over 100K. Wealthsimple has no minimum required investment, which is appealing for new investors.

Unique Features:

• Halal Investing: Helps people manage their investments according to Islamic requirements or principles.
• Wealthsimple Trade: A platform that allows people to trade without paying commissions.
• Wealthsimple Cash: An account that allows you to save and earn competitive interest.

If you’re interested in long-term planning, you may want to explore Wealthsimple’s approach to retirement planning.

2. Questwealth Portfolios

Operated by Questrade Wealth Management Inc., Questwealth provides actively managed portfolios designed to cut costs and improve profits.

Questwealth offers SRI portfolios that are invested in ETFs made up of companies that have good environmental, social, and governance practices. You can choose from portfolios that are conservative, moderate, or aggressive. The management fees are relatively low, starting at 0.25% annually. The minimum investment is $1,000 which makes this a great option for an investor starting out.

Unique Features:

• Tax-Efficient Investing: Uses methods such as tax-loss harvesting.
• Access to Human Advisors: Investors are able to get personal advice from financial advisors.

For a broader comparison of platforms, see our full list of the best robo-advisors in Canada for 2024.

3. Justwealth

Founded in 2016, Justwealth provides automatically managed portfolios that are suited to different investment goals. Among its over 60 different portfolios, Justwealth includes socially responsible investing options — SRI Portfolios. They’re designed for investors who wish to invest ethically. Justwealth charges a management fee of 0.50% for accounts below $500,000 and 0.40% for accounts of $500,000 or more. The minimum investment needed is $5,000.

Unique Features:

• Personalized portfolios: Offers of a high level of customization to suit individual investor needs.
• Financial planning services: Qualified investment professionals on hand to conduct portfolio reviews and give you financial advice.

To learn more about this, visit the Justwealth Robo-Advisor page.

4. RBC InvestEase

RBC InvestEase is the robo-advisor platform of the Royal Bank of Canada. This platform blends the ease of automated investing with the reliability of a major financial institution. RBC InvestEase has portfolios that offer socially responsible investing options, which include ETFs that follow ESG criteria. The platform charges a 0.5% management fee each year and has a very low minimum investment of $1,000.

Unique Features:

• RBC Accounts integration: Integration with RBC accounts makes it easy for existing RBC customers.
• Automatic rebalancing: You can rest assured that your portfolios will fall in line with your goals and risk tolerance.

For those planning for retirement or long-term goals, you can explore how to automate your retirement savings in Canada.

How To Choose The Right SRI Robo Advisor

Choosing the right robo-advisor depends on a few key factors.

• Investment minimums: In regard to Investment Minimums, you need to check if the mandated minimum to invest is aligned with your financial situation.
• Management Fees: Consider both management fees and the underlying fund fees, as total fees impact net returns.
• Portfolio Options: Find portfolios that fit your risk tolerance and your ethical preference.
• Additional Services: Access to human advisors, financial planning tools, and other features may help improve your investing experience.
• User Experience: It is easy to manage your investments if they have a user-friendly interface and good customer support.

You can read our full guide on how to pick the best robo-advisor in Canada for deeper insights and tips.

Conclusion

You can create wealth and help the world by investing responsibly. Now, Canadian robo-advisors give you the chance to build a portfolio that reflects what you believe in. If your goal is sustainability, ethical governance, or social equity, you’ll find a robo-advisor that suits you. Looking at fees, features, and how well the platform performs will help you pick the one you like best. Make sure to look into the different ways you can invest and start doing so with a clear goal. A carefully selected SRI portfolio can help you make money and feel good about your investment.