Are Canadians with more than $500K+ in investable assets better served?

It appears so!  Even when looking just at investment vehicles that were launched in order to give the average investor access to portfolio managers that they would otherwise not have access to (ie mutual funds and ETFs), as well as tax-efficient products such as TFSAs and RRSPs, there is a large gap in usage between those with more than $500K vs those with less.

One could argue that with more than $500K in liquid assets, there can be more diversification across different products – but even just comparing the usage of mutual funds, the gap is more than double  — ETFs it is 5x.

Let us highlight a few categories from the chart:

  • Mutual Funds: 30% of Canadians with less than $500K have mutual funds vs 64% that have $500K+
  • ETFs: 4% with less than $500K have ETFs compared to 20% that have $500K+
  • RRSPs:  56% with less than $500K have RRSPs vs 80% that have $500K+
  • TFSAs: 56% with less than $500K have TFSAs vs 84% that have $500K+

One of the reasons for this likely ties back to 1/3 of Canadians believing that they don’t have enough money to warrant the services of a financial professional.  But as we can clearly see, they could use some advice.

(Credo’s Financial Comfort Zone Survey – results from more than 40,000 Canadians – 2016-2020)