Comparing U.S. and Canadian Robo-Advisors for ESG Investing in 2025
In today’s investing landscape, many Canadians are seeking to align their portfolios with their personal values—prioritizing companies that support environmental sustainability, social justice, and strong governance. That’s where ESG (Environmental, Social, and Governance) investing comes in. Robo-advisors are now easier to use than ever, and so many Canadians are using these automated investment platforms to invest hands-off and ethically. But should you stick with homegrown options or explore U.S. ones?
In this guide, we’ll break down the key players, differences, and what it means for you in 2025, when the Canadian robo-advisor market has become a multi-billion-dollar industry projected to continue its rapid growth. We’ll use reliable sources to help you make your decision, whether you’re new to investing or refining your strategy. For a deeper dive into selecting the right platform, check out How to Pick the Best Robo-Advisor in Canada.
What is ESG Investing?
ESG investing is not just about seeking returns, but investing in companies that are rated well on environmental factors (such as cutting down on carbon emissions), social issues (such as fair labor practices), and governance (think ethical leadership and transparency). In the case of Canadians, this usually involves sustainable energy or diverse multicultural workplaces. Robo-advisors make this easier by creating and managing portfolios of ESG-oriented ETFs (exchange-traded funds) through algorithms. These platforms filter out bad businesses, such as fossil fuels or tobacco, and prefer green technology or inclusive businesses. Why does it matter in 2025?
As the climate crisis and social equity have taken center stage, ESG assets are on fire-they are projected to reach trillions globally. However, it is important to keep in mind that ESG does not guarantee more returns; it is a matter of finding a balance between profit and purpose. If you’re curious about getting started, check out our related article on How to Choose the Right SRI Robo-Advisor. To explore more about ethical investing options, see Best SRI Robo-Advisors in Canada.
Top Canadian Robo-Advisors for ESG
Canada boasts a strong list of robo-advisors that are geared towards ESG enthusiasts. Wealthsimple is the first in the pack, frequently touted as the best overall due to its easy-to-use application and low fees. They have Socially Responsible Investing (SRI) portfolios focused on clean energy and gender equality, and their management fees are approximately 0.4-0.5% and no account minimums. Features for Wealthsimple include automatic rebalancing and tax-loss harvesting, making it ideal for beginners. If you’re just starting out, you might also find value in No-Minimum Balance Robo-Advisors in Canada 2025.
Next up, Questwealth Portfolios from Questrade stands out for rock-bottom fees—starting at 0.20-0.25% for larger accounts. They provide SRI choices that steer clear of contentious areas and proactive management to adjust the holdings based on market changes. It’s great for cost-conscious investors, allowing them to use accounts such as TFSAs and RRSPs to receive tax benefits.
RBC InvestEase rounds out the top three, blending big-bank reliability with ESG screens. The charges are 0.5% and they offer personalized guidance in addition to automated services. Other contenders are Justwealth to build customized ethical portfolios and BMO SmartFolio to have security backed by the bank. While many of these portfolios focus on Canadian themes like renewable resources or Indigenous rights, they are often globally diversified to provide a better balance of risk and return.
Top U.S. Robo-Advisors
Although U.S. robo-advisors are the most popular in the world, with Vanguard’s digital service at the top of the list with over $330 billion in assets under management, Canadians will find it a challenge to get access because of strict U.S. residency requirements.
Leading U.S. robo-advisors, such as Betterment and Wealthfront, are not accessible to Canadian residents. While these platforms have attractive features, including low fees (approximately 0.25%), robust ESG portfolios, and advanced tax strategies, they require applicants to be U.S. citizens or permanent residents with a valid Social Security Number and a U.S. address. Therefore, they are not a viable option for a Canadian seeking to invest from home.
Key Differences in Features and Fees
Canadian robo-advisors tend to focus on simplicity and tax-favored accounts such as TFSAs, and their fees can vary between 0.20% (Questwealth) and 0.50% (RBC). They are the best in local support and ESG that is aligned with Canadian regulations. U.S. ones, such as Betterment, have more sophisticated algorithms and broader fund selections, but they have similar fees (0.25%), and currency conversion adds costs for Canadians. Both Canadian and U.S. robo-advisors offer rebalancing, but U.S. platforms lead in tax-loss harvesting. In 2025, hybrids blending AI with human advice are trending on both sides. For more on choosing an SRI-focused platform, read How to Choose the Right SRI Robo-Advisor.
Conclusion
Choosing between U.S. and Canadian robo-advisors for ESG investing boils down to your priorities: ease and local perks versus advanced features. Start with Wealthsimple or Questwealth, as they provide the best local solutions for ESG investing. These tools allow ethical investing to be accessible in 2025 with the increasing AUM and technological progress. Ready to dive in? Compare fees on Ratehub.ca or consult a pro. For more, read our pieces on No-Minimum Balance Robo-Advisors in Canada 2025 and Best SRI Robo-Advisors in Canada.