Why I'm Investing 100% In Equities (No Bonds) - Changing Wealthsimple Portfolio To An 11 Risk Level

After having my Wealthsimple Invest robo advisor portfolio for one full year, I realized something - my portfolio is very diversified. I have a portion of my money in the US market, the Canadian market, Global markets and Emerging markets - and because of this, my risk is reduced compared to being all in on one market. So I decided to up my risk level to an 11/10 (yes, you saw that right), and have an 100% equities portfolio. In other words, I had my robo advisor sell off my 10% fixed income, bonds, gold, etc and am 100% invested in stocks, instead. In this video, I'll talk about why and the process of making the change (because you can't do it yourself online!).

0:00 Wealthsimple Invest Portfolio
0:26 What does my investment portfolio look like?
1:37 What does it mean to invest in broad market funds?
2:11 What does it mean to diversify your portfolio?
3:08 How does risk level work? Equities vs bonds
4:19 What is my portfolio risk level right now?
4:49 How should you pick your risk level?
6:09 What's the impact of having an 100% equities portfolio?
9:00 What's the process of changing my risk level to an 11/10?
9:55 What does my portfolio look like now?
11:16 Wrap Up

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Disclaimer - This content is for education and entertainment purposes only. Steph & Den do not provide tax or investment advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal.

[stephandden]

I now officially have an 100% equities portfolio! What are your thoughts on risk level vs portfolio diversification? ⬇

[lynah]

Love how Steph speaks about the importance of confidence and knowledge when investing in level 10. This is what made a difference for my investing journey. Knowledge created a sense of security.

[stanleysui]

when was this video recorded? how are you still up 5.4% with the current market situation for only investing for 1 year?

[Ali-vihy]

Would love to see an update on how it is going with you having 100% equity!

[seekpeace]

Investing with Wealthsimple robo investor comes with significant cost (0.5% fees + currency conversion fees for some funds etc). Why do you choose Wealthsimple compared to one ETF portfolio (XEQT/VEQT)?

[vijaysinghdhapola]

hi there i'm new to wealthsimple so what account should i open with lesst knowledge about trading and stocks- "automated investing" or "trade your own stocks"

[aaronjackson]

After you finsh maxing out your TFSA what should you do?? Wouldn't making another account mess up the investments or what would happen?

[TheMadSkitzo]

Just FYI, you can move your funds to a self-managed account and buy the exact same ETFs that are in the managed account, saving you the 0.5% fee, which is $250 on a $50k portfolio.

[shermskiii_]

Bopping around YouTube trying to find Canadian financial YouTubers… and I find you guys! Awesome stuff - I feel like Steph and I would be friends in real life. I’m from Niagara region (Ontario side) and use wealth simple trade and invest too! Super cool :)

[jdelr]

Thanks for this! Super insightful.
Question though. I have a similar amount as you in my TFSA right now with WS and a risk level of 10. I do a weekly recurring (every Monday) deposit of $250, up to $1000/month. But right now I am actually down in returns. What can be causing this? Could the recurring deposit, on the same day have a significant affect?

[ninod]

That’s a great strategy. With your time horizon and a broad based global equity portfolio, I think it’s the right thing. Just got to ride out the red days and continuously contribute. The equity market will go up.

Question about WS Invest fees. Are you paying 0.5% for the entire portfolio or are each ETFs have their own MER in addition to the 0.5%?

Love what you guys are doing. I’m from Vancouver BC and absolutely been binge watching all your videos. Just full of pearls and wisdom. Keep it up guys!

[iamarjunumashankar]

I was looking for something around equities a while ago. Thank you for posting this content 😄

[julianmajor]

Is there are any penalties for changing your risk level? Is there an optimum to do this? If you decrease your risk level now while the markets are down would that be a bad move? My understanding is your selling your equity low to buy fixed income.

[site_is_down]

Advanced level thinking! While others are going crazy over losing stocks because of the movement of the market, investing in equities can really be a safe haven. Investing in equities can help you do so as they can -beating returns in the long run. Investing in equities can appreciate your principal capital by a significant margin. If you invest in an equity share of a fundamentally sound company, its price, in all likelihood, will appreciate with time.

[adsimal]

I also switched my WS Invest portfolio to 11 after you mentioned it a couple weeks back, because I had been looking for something like that anyway and didn't know it was possible!

[tkocikrena]

This is great info about WS invest and agreed/on board with "high risk" mostly in equities if you have the money and time to invest long term (i.e. not needing it for retirement/major purchase too soon). I had one not great experience with them but overall also a big fan of WS customer service, in my experience they actually offered to have a call and was a great opportunity to ask some questions about WS invest, understand how it works, understand how their rebalancing works, deciding if I should use it or self directed investing more, etc.

[verveblack]

ridiculous you can’t change risk level on the app. what is the point of this?

[vd]

Hi! Are you guys still with EqBank or only with wealth simple?

[taggthis]

Thank you, I am just about to make my first index fund purchase via vanguard. I intend to invest long term and just leave the funds ‘locked away’ for at least 5 years forgetting about it. I am just getting slightly stuck on how I balance my percentage portfolio between equity vs bonds. Low risk is good for me. Any tips or related videos you can recommend??

[orangejuiceyyy]

Been following you guys for a while, great videos! Is there a good calculation to use when deciding how much to invest as a newbie? Also which vanilla syrup do you use 😊