Robo-Advisor vs DIY vs Mutual Funds in Canada: The Cost Over 25 Years
$25,000 plus $250 a month for 25 years, 80% stocks, 20% bonds, at 5.84% a year before fees.
- One all-in-one ETF yourself (ZGRO)$259,4880.18% MER, bought at a $0-commission brokerage. $5,236 in fees over 25 years.
- Wealthsimple managed$237,9290.5% under $100,000, 0.4% from $100,000, as low as 0.2% from $500,000 plus about 0.2% in fund costs (assumed; not published). $17,176 in fees over 25 years.
- Bank balanced mutual fund$187,7401.93% MER, the 2024 asset-weighted average for the category (OSC). $45,369 in fees over 25 years.
Turn on JavaScript to change the numbers. The figures shown are for $25,000 plus $250 a month for 25 years at 80% stocks.
The short answer
Buying one all-in-one ETF yourself is the cheapest of the three: you pay only its MER, 0.18% to 0.22% in our check. A robo-advisor adds a management fee of 0.20% to 0.70% a year to do the buying and rebalancing for you. A typical bank mutual fund costs about 1.9% a year. In the calculator’s default example, $25,000 plus $250 a month for 25 years, doing it yourself ends with $71,749 more than the mutual fund.
This is step 3 of six in our investing path. The calculator runs the same money through all three.
The three approaches
One all-in-one ETF, yourself
You open a brokerage account, buy one ticker such as ZGRO, XGRO or VGRO, and add to it on a schedule. The fund holds thousands of stocks and bonds and rebalances itself. Five brokerages charge $0 to buy it. What you give up is the automation: you place each purchase yourself, and nobody stops you from selling in a downturn. See all-in-one ETFs compared.
A robo-advisor
A robo-advisor sets your mix from a questionnaire, invests deposits automatically and rebalances. Fees run from 0.25% at Questwealth Portfolios to 0.70% on the first $100,000 at BMO SmartFolio, plus the cost of the ETFs inside. It suits people who want to set it up once and not think about it. See best robo-advisors.
Mutual funds and advisors
Bank mutual funds and advisor-sold funds bundle the investment cost and the advice into the MER. The Ontario Securities Commission’s data puts 2024 asset-weighted MERs at 1.88% for Canadian equity funds and 1.93% for balanced funds. Deferred sales charges were banned across Canada on June 1, 2022. From 2027, your annual fee report will show the total dollar cost of the funds you hold, under new total cost reporting rules that took effect January 1, 2026.
Building your own portfolio
Some investors hold three or four index ETFs instead of one all-in-one fund, for example a Canadian, a US, an international and a bond ETF. The fund costs can be slightly lower, but you have to rebalance them yourself, and each extra holding is another decision to make in a bad market. For most people the saving is a few dollars a year and the all-in-one ETF is the better default.
When paying more makes sense
- You would not invest on your own. A robo-advisor that invests automatically beats a cheaper ETF you never buy.
- You know you would sell in a crash. The guardrail of an advisor or robo may be worth its fee.
- You need planning, not just investing. Tax, estate and retirement income questions are where a fee-only planner earns their cost.
How the calculator works
All three options use the same expected return for the mix, from the FP Canada 2026 Projection Assumption Guidelines (6.5% for stocks, our blend at VEQT’s regional weights, and 3.2% for bonds). Each month the balance grows, the option’s yearly cost is taken as one-twelfth on the current balance, then your deposit is added. The DIY option uses the cheapest all-in-one ETF of the chosen mix; the mutual fund uses the OSC 2024 average for the category.
Frequently asked questions
Is a robo-advisor worth it compared with buying ETFs myself?
Only if you would not invest consistently on your own. A robo adds 0.20% to 0.70% a year on top of fund costs. One all-in-one ETF bought at a $0-commission brokerage costs only its MER, 0.18% to 0.22% in our October 30, 2026 check.
How much do mutual fund fees cost over time?
The Ontario Securities Commission’s 2024 data puts the asset-weighted MER at 1.88% for Canadian equity funds and 1.93% for balanced funds. Over 25 years of monthly saving, that can cost tens of thousands of dollars compared with a 0.18% ETF; the calculator shows the amount for your numbers.
Do I need to rebalance an all-in-one ETF?
No. An all-in-one ETF rebalances itself back to its target mix of stocks and bonds. You only decide how much to add and when.
What is total cost reporting?
New rules in force January 1, 2026 require dealers to show the dollar cost of the investment funds you hold, including MERs, on your annual fee report. Investors start seeing these reports in 2027.
- Ontario Securities Commission: asset-weighted mutual fund MERs (2024); CIRO: Total cost reporting, what investors need to know for 2027; CSA: ban on deferred sales charges. Checked October 30, 2026.
- Robo-advisor and ETF fees: see the sources on our robo-advisor and all-in-one ETF pages, checked October 30, 2026. Expected returns: FP Canada 2026 Projection Assumption Guidelines.
- Method: monthly simulation; results checked against a separate implementation.
General information, not investment, tax or legal advice. Fees and rules change; confirm with the provider and the official sources above before you act. Gizly is not affiliated with any provider named here and has no affiliate links on this page. See how we check the numbers and our disclosure.