Can You Buy Index Funds on Wealthsimple? [And How To Do It]

Are you looking to properly set yourself up for the future so you can retire comfortably and feel less stressed as you go about your daily life, knowing you’ve got your money working for you?

If so, investing in index funds can be a great way to go about this, as they are generally a great way to invest in a single asset and easily get broad diversification.

If you’re a Canadian investor, and you’re using Wealthsimple, or you’re thinking about opening an account, you might be wondering if Wealthsimple has index funds on their platform to buy.

These are all things we will get into in this article, so let’s do it.

What are Index Funds?

Before we dive deep into buying index funds on Wealthsimple, let’s first make sure we know exactly what an index fund is.

In short, an index fund is a type of mutual fund or exchange-traded fund (ETF) with a portfolio constructed to match or track the components of a financial market index, such as the S&P 500^[1] or the Nasdaq Composite Index^[2].

The main goal of an index fund is basically just to provide broad market exposure while lowering operating expenses with low portfolio turnover. These funds follow their respective indices regardless of the state of the markets.

Can You Buy Index Funds on Wealthsimple?

Wealthsimple users can absolutely purchase index funds on the platform through Wealthsimple’s two investment products, Wealthsimple Invest and Trade. Wealthsimple Invest offers a more passive approach to investing in index funds, while Wealthsimple Trade allows you to actively buy individual index funds based on your exact preferences.

Regardless of which investment strategy you go for – both avenues allow for diverse exposure to these funds. If you’re not 100% sure how Wealthsimple Invest and Trade products differ, check out my article here.

In the section below, I’ll show how to purchase index funds through Wealthsimple Trade.

How To Buy Index Funds on Wealthsimple

Buying an index fund like the S&P 500 on Wealthsimple is a super straightforward process.

In this 5-step guide, I’ll walk you through exactly how to do it using a desktop interface. If you prefer using a mobile device, don’t worry; the steps are essentially identical.

Let’s dive in and get started!

Step #1 – Login To Your Wealthsimple Trade Account

First and foremost, the process begins with logging in to your Wealthsimple Trade account.

If you haven’t created an account yet, you can register for one here. The registration process is so simple – it takes approximately 15 minutes to complete from start to finish.

Once your account is set up and you’ve successfully logged in, your screen should appear similar to what I have below (with certain parts blurred for privacy).

Next, let’s proceed to step #2.

Step #2 – Use The Search Bar To Look for Index Funds

If you already know what index fund you want to invest in, you can simply just search for it in the search bar. If Wealthsimple has it on their platform, it’ll show up.

For example, if I wanted to buy into the S&P 500 index fund, I would search something like “s&p 500,” and as you can see from the image below, it clearly shows up for me to select.

Now, it’s actually important to note that you can do this on mobile too, and if you don’t know what index fund you want to buy, the mobile experience is actually better for just scrolling a list of them.

I personally enjoy working on a desktop when buying and selling assets, as it allows me to have a few different tabs open if I’m doing any research or calculations, but as you can see from my quick video below, the mobile version is better for browsing if you’re unsure on what to buy.

Step #3 – Select The Number Of Shares You Want To Purchase And Click Buy

Okay, so now that you’ve selected something to buy and you are on the trading page, all you do is put in the number of shares of your selected Index Fund or ETF that you want to buy and then click “Buy [ticker name]”.

For example, in the image below, I’m buying ten shares of VOO, which is Vanguard’s S&P 500 index fund on the NYSE.

Step #4 – Look Over Purchase Details and Click Confirm Order

Now, all that remains is to review your purchase details. If everything looks good to you, simply click “Confirm order.”

In the image above, you can see that I’ve made a fractional buy of $1.00 of VOO, with no additional costs beyond the share’s price. Keep in mind if you’re not using a Wealthsimple Trade Plus account, and you purchase VOO, a currency conversion fee will be displayed here.

Check out my article here for a full comprehensive breakdown of Wealthsimple Trade’s fees.

Step #5 – Confirm Completion

You’re now at the finish line! Simply click “Done” or “View order status” to finalize the process.

The time it takes for your order to be officially filled may vary depending on the type of order you’ve placed.

When your order is successfully filled, you’ll receive an email notification, which will look something like this (though with your specific order details):

And there you have it. You’re all set! Congratulations on becoming a part-owner of the market!

FAQs about Index Funds