Wealthfront Inc. Is An Automated Investment Services Company Headquartered In Palo Alto, California. Founded In 2008 By Benchmark Co-founders Andy Rachleff And Dan Carroll As KaChing, Wealthfront Was A Mutual Fund Analytics Firm That Later Moved Into The Wealth Management Space. As Of November 2023, Wealthfront Had $50 Billion In Assets Under Management In 700,000 Accounts.
Rachleff Was The Company's Founding CEO. In December 2012, The Company Began Collecting Tax Losses On Accounts Over $100,000.
The Company Began 2013 With $97 Million In Assets Under Management, A 450% Increase In One Year. In 2013, Wealthfront Launched "Direct Indexation," A Tax Loss Harvesting Platform That Allows The Purchase Of Individual Securities In A Portfolio. Adam Nash Served As CEO Of Wealthfront Between January 2014 And October 2016. Founder Andy Rachleff Returned To The Role In 2016.
In 2016, Wealthfront Partnered With The State Of Nevada To Launch The 529 Tax-Incentive College Savings Plan. Last Year, The State Of Nevada Approved A New Tax Credit For Employers That Provide Fund Matching For Employees Enrolled In The 529 Savings Plan. Andy Rachleff Is Currently Executive Chairperson And CEO. In January 2018, Wealthfront Launched A Homeownership Planning Tool For Path. In January 2020, Wealthfront Was Named By Business Insider As One Of The Top 10 Best Robotic Advisors Of 2020.
In January 2022, UBS Agreed To Acquire Wealthfront For $1.40 Billion. The Acquisitions Were Mutually Terminated In September 2022, With Neither Company Providing A Reason. UBS Group Announced That It Will Invest In $69.7 Million Notes Convertible Into Wealthfront Stock And Value The Latter At Its Acquisition Price.
In February 2019, Wealthfront Launched The Cash Account, A High-interest Savings Account. The Interest Rate On The Cash Account Tracks The Federal Funds Rate And Is Covered By The FDIC Up To $8 Million, With A Minimum Amount Of $1 In The Account. Wealthfront Is Able To Offer FDIC Insurance For $8 Million As It Deposits Customers' Cash Account Funds Into A Network Of Partner Banks Such As Citibank, HSBC, And Wells Fargo.
In June 2020, Wealthfront Added Checking Capabilities To The Account, Including Direct Deposit, Bill Payment, And ATM Access.
The Cash Account Was Initially Available Only To Customers With Existing Investment Accounts. In August 2020, Wealthfront Fully Opened Up Cash Accounts.
Wealthfront Charges A 0.25% Advisory Fee On The Funds It Invests In For Its Clients. This Fee Is Charged For Investment Accounts Only (not For Cash Accounts). If A Client Signs Up Through An Affiliate Link, Wealthfront Provides A $5,000 Fee Waiver On A Regular Basis. In Addition, Clients Receive A $5,000 Fee Waiver For Referring New Clients; New Clients Must Start Using The Service, And If A New Client Withdraws From The Service, The Fee Waiver Is Cancelled. A $5,000 Fee Waiver Is Available For Both Referrals And Referrals.
The Minimum Amount For Investment Accounts At Wealthfront Is $500.
