RBC InvestEase Review 2024
RBC Investease Review
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Customer service
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Fees
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Portfolio Options
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Safety
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Credibility
RBC InvestEase Review Summary:
RBC InvestEase is RBC’s in-house robo advisor service. It utilizes the Royal Bank of Canada’s trusted name and dependable reputation to provide users with an added layer of security to their robo advisor experience.
While RBC InvestEase may offer fewer account and portfolio options as well as lower past performance when compared to our top recommended robo advisor, Justwealth, it stands out with its strong responsible investing (RI) option. However, the popularity of RI and socially responsible investing (SRI) options has increased over the years, due in part to popularity with millennials, so more and more robo advisors are now offering these types of portfolios.
If you are interested in RI portfolios and looking to enhance your existing RBC services, then RBC Invest may be a great choice. Read on in our RBC InvestEase review to learn more about the different accounts, portfolios, past performance, and more.
Pros
- Reputation and trust of RBC, one of Canada’s biggest and oldest banks
- Socially responsible investing options
- Covers fees for transfers over $15,000 (up to $200 in total fees)
- Portfolio managers available to give advice by phone and email
Cons
- Limited account types and portfolio options
- No tiered price discount for larger accounts
- No mobile app (need to use general RBC banking app)
- $150 (plus sales taxes) to transfer your money to a non-RBC financial institution
What is RBC InvestEase?
Some people prefer to stick with the familiar and trusted, especially when it comes to choosing a robo advisor – and if this sounds like you, RBC InvestEase could be a good fit. Offered by one of Canada’s most well-known banks, RBC InvestEase offers clients the ability to dip their toes in passive investing while sticking with a tried and true financial name.
In this RBC InvestEase review, we’re taking a look at how it compares to the best robo advisors in Canada so that you can best decide if the RBC robo advisor is right for you. We’ll dig into the details of pricing and account options and show you how InvestEase stacks up against Justwealth, our top pick for Canadian robo advisors.
RBC InvestEase Fees
We’re always on the lookout for robo advisors that offer better value, but RBC keeps things pretty middle of the road fee-wise. RBC InvestEase charges a flat-rate management fee of 0.50%, no matter the size of your account. That makes it easy to understand for new investors, but the lack of tiered pricing means that investors with larger accounts are paying more than they need to.
On top of the management fee, you will be charged the MERs (management expense ratios) on the ETFs in your portfolio. There are two different rate categories for MERs depending on your portfolio. With the standard portfolio, you will have MERs between 0.11%, and 0.14%. If you have a responsible investing portfolio, those fees will be higher and range between 0.18% and 0.23%.
Note that for anyone considering switching their investment to RBC InvestEase, they will cover the transfer fee for transfers over $15,000, up to a total of $200 in fees.
However, watch out if you’re going to transfer your money to a non-RBC financial institution. I was surprised to see it would cost me $150 plus sales taxes to move funds.
RBC InvestEase Account Types
RBC InvestEase offers TFSAs, RRSPs, FHSAs, and non-registered accounts only.
While these four accounts are typically the most common accounts used by Canadians, it is a bit disappointing that there are not more options available. Other robo advisors such as Justwealth, Wealthsimple, and BMO Smartfolio also offer RESPs, RRIFs, and LIRAs.
RBC InvestEase Portfolios
RBC InvestEase offers two different categories of portfolios. The standard portfolio and the responsible investing portfolio, which are then further broken down into 5 basic types of portfolios depending on your risk tolerance.
Both standard and responsible investing portfolios offer globally diversified ETFs, a management fee of 0.50%, and include having your account professionally rebalanced and managed by RBC InvestEase. The difference is in the types of ETFs that each portfolio focuses on. In a responsible investing portfolio, RBC chooses ETFs with high environmental, social, and governance (ESG) factors and eliminates ETFs tied to companies involved in weapons, tobacco, or major controversies.
RBC is an industry leader in responsible investing. Since responsible portfolios are quite specific compared to standard portfolios, the MERs are a little higher. However, some individuals are unbothered by the extra fees as they feel like they are contributing to the greater good and the future.
Whatever portfolio you choose, RBC has the same goal: to help you grow your money.
RBC InvestEase Performance
RBC InvestEase has posted returns between 2.9% (very conservative portfolio) and 8.9% (aggressive growth portfolio) for their standard portfolios and between 2.5% and 9.6% for their SRI portfolios. However, please keep in mind that there’s little real information about the quality of investments to be gathered from these numbers, especially in the case of a robo advisor that only launched in 2017.
Performance history only tells you how things have performed in the past, and in this case, only in the short term. Investing is a long game, and generally speaking, all well-diversified portfolios trend the same way in the end. That’s why we recommend focusing on the basic index investing principles instead. These include:
- Diversification
- Asset allocation
- Indexing
- Rebalancing
- Expenses
- Index Funds (ETFs)
Robo advisors all follow these same principles and the underlying ETF indexes are the same so trying to compare them and gauge performance is, quite frankly, a waste of time. Trust in the process.
That being said, if you are a visual person you can look at your RBC InvestEase dashboard either on your desktop/laptop or via the RBC app. You will notice a time-weighted chart with projections on your performance based on your contributions. Again, keep in mind that this is not guaranteed, there are plenty of factors that can change the outcome.
Different Portfolios Yearly Returns
And for your curiosity, we’ve put together a table outlining and comparing the past performance of a few portfolios from RBC InvestEase, and our top-rated robo advisor, Justwealth. The conservative comparisons are for their most conservative portfolios, and the growth comparisons are for their most aggressive (ie. weighted most heavily in equities) options.
Conservative Portfolio Returns
| Justwealth “Conservative Growth”Asset Allocation: 80% Fixed Income/20% Equity | InvestEASE “Very Conservative”Asset Allocation: 80% Fixed Income/20% Equity | |
| 1 year return | 13.72% | 6.10% |
| 3 year return | 2.05% | 0.40% |
| 5 year return | 4.30% | 2.30% |
Balanced Portfolio Returns
| Justwealth “Balanced Growth”Asset Allocation:40% Fixed Income/60% Equity | InvestEASE “Balanced”Asset Allocation: 45% Fixed Income/55% Equity | |
| 1 year return | 17.02% | 11.20% |
| 3 year return | 5.30% | 3.40% |
| 5 year return | 8.52% | 6.00% |
Growth Portfolio Returns
| Justwealth “Maximum Growth”Asset Allocation: 100% Equity | InvestEASE “Aggressive Growth”Asset Allocation: 2 Cash/98% Equity | |
| 1 year return | 19.96% | 17.80% |
| 3 year return | 7.58% | 7.40% |
| 5 year return | 11.45% | 10.20% |
As you can see above, Justwealth has had higher returns over the past 5 years whether comparing conservative, balanced, or growth portfolios. Past performance does not guarantee future performance, but you may be curious to learn more in our Justwealth review about how they have had such high returns.
RBC InvestEase Mobile App Review
RBC InvestEase does not have its own specific mobile app. Investors can access their portfolio information via the main RBC Mobile app.
This app has a 4.8 star rating on the Apple store and a 3.7 star rating on Google Play. I found the recent comments on the Google store to be a mixed bag when it comes to complaints, but there are also recent positive 4 and 5-star reviews. The Apple store comments have more positive feedback in the mix, but there are still a number of complaints. Based on the feedback, it looks like some patches and updates are needed.
The RBC Mobile app users on the MDJ editorial team haven’t experienced any specific issues, but it’s always good to keep general experiences in mind when you’re comparing robo advisors. In this case, the RBC Mobile app doesn’t seem to be a noteworthy selling point as far as RBC InvestEase is concerned.
RBC InvestEase vs Justwealth
So, we’ve dug into portfolio options, fees, and performance. But the real question is how does RBC InvestEase compare to other robo advisors on the market?
When it comes to the big banks, RBC is only one of two banks right now to offer a robo advisor. The other option is BMO Smartfolio. You can read my BMO Smartfolio review here.
With such a small field, asking how RBC compares to the big banks isn’t helpful. What you really want to know is how RBC InvestEase compares to Justwealth which is, hands down, our top pick for a robo advisor. Let’s take a look.
| Robo Advisor | RBC InvestEase | Justwealth |
| Management Fees | 0.50% | 0.40%-0.50% |
| 5-year returns (balanced portfolio) | 6.00% | 8.52% |
| MERs | 0.11%-0.14 standard portfolios 0.18%-0.23% responsible investing portfolios | 0.15%-0.75% |
| Number of Portfolios Available | 5 standard portfolios, 5 responsible investing portfolios | Over 80 different portfolios designed to grow your wealth, generate income, or preserve your wealth |
| Personalized Financial Advisor | Advisors are available, but they are not assigned personally to clients | Yes |
| Responsible Investing (RI) or Socially Responsible (SRI) Option | Yes, 5 RI portfolios are available | Yes, SRI portfolios are available |
| Minimum Deposit | $0, but your money only starts being invested when you have $100. Your money won’t be invested in a fully diversified portfolio until your balance reaches $1500. | $5,000 (although there is no minimum for RESP and FHSA accounts) |
| Account Types | RRSP, TFSA, FHSA, non-registered | RRSP, TFSA, FHSA, RESP, LIRA, RRIF, LIF, non-registered |
| Target-Date RESP Funds | No | Yes |
| Promo | None | $100-$500 Instant Cash Back |
It’s no secret that Justwealth is our top choice for a robo advisor (click here for our full Justwealth review). If you curious why we switched to picking it over Wealthsimple which most sites recommend, read our Wealthsimple vs Justwealth comparison (tl;dr – much better performance).
Justwealth has 8 times as many model portfolios, while still offering socially responsible investing options. Additionally, you have many more account type options.
As you can see from the chart above, when it comes to fees, RBC InvestEase doesn’t appear to be too far behind Justwealth. In fact, the MER on some portfolios is lower than Justwealth’s, but, as your account grows there will be a difference between the management fees of 0.40% and 0.50%.
What’s more, with Justwealth you get access to a personalized advisor and an easy-to-use and highly rated app and online platform. All of these make passive robo-investing even simpler and more accessible for those just getting started!
At the end of the day, if you are a dedicated RBC client and prefer to keep all of your financial products in one place, and if you’re only looking for your basic TFSA, FHSA, or RRSP accounts, then RBC InvestEase is a pretty solid choice for you for a robo advisor.
RBC InvestEase Review FAQ
Is RBC InvestEase The Right Choice For Me?
RBC InvestEase is a reliable robo-advisor, which is why it’s included in our list of the best robo advisors in Canada. Their investment portfolios for responsible investing are excellent, and they are backed by over 150 years of trust with Canadians.
If you’re new to robo advisors and prefer the reassurance of a well-known bank name, or if you’re already an RBC client wanting to consolidate your accounts in one place, then RBC InvestEase is definitely worth considering.
However, while we do recommend RBC InvestEase, it doesn’t top our list. Its fee structure can be less favorable for clients with larger investments, and it lacks the diverse account options offered by our top choice. For passive investing in Canada, we still recommend Justwealth as the best option.
