The Core Cost Comparison
If you are new to DIY investing, get the basics first from our ETFs and index funds hub.
| Approach | Management Fee | ETF MER | All-In Cost |
|---|---|---|---|
| DIY — XEQT at Questrade (free ETF trades) | $0 | 0.20% | 0.20% |
| DIY — VGRO at Questrade | $0 | 0.24% | 0.24% |
| DIY — XBAL at Questrade | $0 | 0.20% | 0.20% |
| Questwealth (robo-advisor) | 0.20–0.25% | 0.15–0.25% | ~0.40% |
| Wealthsimple Managed (robo-advisor) | 0.40% | 0.10–0.20% | ~0.55% |
| Big-bank balanced mutual fund | ~0% (bundled) | 1.80–2.50% | ~2.00% |
Annual Dollar Cost at Different Portfolio Sizes
| Portfolio Size | DIY XEQT | Questwealth | Wealthsimple | Bank Mutual Fund |
|---|---|---|---|---|
| $10,000 | $20 | $40 | $55 | $200 |
| $25,000 | $50 | $100 | $138 | $500 |
| $50,000 | $100 | $200 | $275 | $1,000 |
| $100,000 | $200 | $400 | $550 | $2,000 |
| $250,000 | $500 | $1,000 | $1,375 | $5,000 |
| $500,000 | $1,000 | $2,000 | $2,750 | $10,000 |
What a Robo-Advisor Gives You (vs DIY)
| Feature | DIY ETF | Robo-Advisor |
|---|---|---|
| Automatic rebalancing | ❌ Manual (you must do it) | ✅ Automatic |
| Dividend reinvestment | ❌ Manual or DRIP setup | ✅ Automatic |
| Tax-loss harvesting | ❌ Manual | ✅ Some platforms |
| Behavioral guardrails (hard to panic-sell) | ❌ You have full control | ✅ Less temptation to react |
| Portfolio construction expertise | ❌ You decide | ✅ Professional-managed allocations |
| Account opening complexity | Low (choose 1 ETF) | Very low |
| Ongoing time required | ~1–2 hours/year | ~0 hours/year |
| Fee transparency | ✅ Crystal clear (MER on ETF page) | ✅ Good (must add mgmt fee + MER) |
| Human advisor contact | ❌ None | ✅ Some platforms |
20-Year Compounding Impact of the Fee Difference
You can model these differences yourself with our MER calculator.
Starting balance: $100,000. Annual gross return: 6%. Additional $500/month contributions. All fees deducted annually.
| Approach | All-In Fee | Portfolio Value at Year 20 | Fees Paid (Total) |
|---|---|---|---|
| DIY XEQT | 0.20% | ~$465,000 | ~$9,000 |
| Questwealth | 0.40% | ~$447,000 | ~$18,000 |
| Wealthsimple Managed | 0.55% | ~$436,000 | ~$25,000 |
| Bank Mutual Fund | 2.00% | ~$355,000 | ~$90,000 |
Difference between DIY and Wealthsimple: ~$29,000 over 20 years. Difference between DIY and bank fund: ~$110,000 over 20 years. Estimates are illustrative; actual results depend on market performance.
Popular One-Ticket ETFs for DIY Canadian Investors
Our best all-in-one ETFs in Canada guide expands on these one-fund options.
| ETF | Equity % | MER | Appropriate For |
|---|---|---|---|
| XEQT (iShares) | 100% global equity | 0.20% | Long-term investors (10+ year horizon) |
| VEQT (Vanguard) | 100% global equity | 0.24% | Same as XEQT, slight Canada tilt |
| XGRO (iShares) | 80% equity / 20% bonds | 0.20% | Growth-oriented, moderate risk |
| VGRO (Vanguard) | 80% equity / 20% bonds | 0.24% | Similar to XGRO |
| XBAL (iShares) | 60% equity / 40% bonds | 0.20% | Balanced risk tolerance |
| VBAL (Vanguard) | 60% equity / 40% bonds | 0.25% | Similar to XBAL |
| XCNS (iShares) | 40% equity / 60% bonds | 0.20% | Conservative; near-retirement |
| XINC (iShares) | 20% equity / 80% bonds | 0.20% | Income-focused / retirees |
Break-Even Analysis: Is the Fee Worth It?
At what portfolio size is it worth switching from robo-advisor to DIY?
| Fee Gap | Annual $ Savings at $100K | Annual $ Savings at $250K | Annual $ Savings at $500K |
|---|---|---|---|
| 0.35% (Questwealth vs DIY) | $350/yr | $875/yr | $1,750/yr |
| 0.40% (average robo vs DIY) | $400/yr | $1,000/yr | $2,000/yr |
| 0.55% (Wealthsimple vs DIY) | $550/yr | $1,375/yr | $2,750/yr |
Personal break-even formula: Divide the number of hours required to learn and manage DIY by your hourly earnings equivalent. If managing a DIY ETF portfolio takes 15 hours of learning + 2 hours/year, and your time is worth $50/hour, the setup cost is $750 (once) + $100/year. This is easily recouped by the fee savings above $100,000.
The Behavioural Factor — The Real Wildcard
Research on actual investor behavioural gaps:
| Investor Type | Average Gross Market Return | Average Net Investor Return | Behavioural Gap |
|---|---|---|---|
| DIY stock pickers | 6–8%/year | 4–5%/year | ~2% loss from timing |
| DIY index investors | 6–8%/year | 5.5–7%/year | ~0.5–1% loss |
| Robo-advisor clients | 6–8%/year | 5.8–7.2%/year | ~0.2–0.5% loss |
| Bank mutual fund clients | 4–6%/year (net of MER) | 3.5–5%/year | ~0.5–1% loss |
Even DIY index investors who understand the strategy can fall prey to panic selling in crashes. Robo-advisors tend to produce slightly better behavioral outcomes by design. The net result: the fee gap may be smaller in practice than in theory for emotionally reactive investors.
Who Should Use a Robo-Advisor vs Go DIY
| Choose a Robo-Advisor If… | Choose DIY ETFs If… |
|---|---|
| You’ve panic-sold investments before | You can ignore your portfolio during crashes |
| You find investing confusing or stressful | You’re comfortable choosing one ETF (XEQT/VGRO) |
| You want completely hands-off management | You want to save the fee difference |
| Your portfolio is under $50,000 (fee gap is small) | Your portfolio is $100,000+ (fee gap is meaningful) |
| You want automatic rebalancing without thinking | You’re willing to rebalance once or twice a year |
| You use RESP and want target-date de-risking (Justwealth) | You want full control and transparency |
If you prefer a simple DIY route, our best ETF portfolio for $100 per month shows what a one-fund approach looks like in practice.
How to Set Up a DIY ETF Portfolio at Questrade
- Open a Questrade account (free ETF purchases)
- Choose your account type (TFSA, RRSP, FHSA, or personal)
- Fund the account (EFT or cheque; typically 1–3 business days)
- Choose one ETF: XEQT (100% equity), XGRO (80/20), or XBAL (60/40)
- Buy the ETF — no commission at Questrade
- Set up automatic contributions if possible
- Review once per year — only rebalance if allocation drifts more than 5%
Total ongoing time: ~1–2 hours per year after initial setup.
For the actual trading steps, see how to buy ETFs in Canada.