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{{short description|Automated investment service firm}}
{{infobox company
{{infobox company
| name = Wealthfront Inc.
| name = Wealthfront Inc.
| logo = Wealthfront Logo.svg
| logo = Wealthfront Logo.svg
| logo_size = 128px
| logo_size = 128px
| former_names = kaChing (2008–2010)
⚫
| founder = [[Andy Rachleff]] ([[Chief executive officer|CEO]], Chairman)<br>Dan Carroll
| founders = {{ubl|[[Andy Rachleff]] | Dan Carroll}}
| key_people = [[Burton Malkiel]] ([[chief investment officer|CIO]])
⚫
| key_people = {{ubl|Andy Rachleff |([[Chief executive officer|CEO]] & Chairman)|[[Burton Malkiel]] ([[chief investment officer|CIO]])}}
| industry = Personal Finance, Stock Exchanges, Finance
| industry = Personal finance, Stock exchanges, Finance
| aum = {{decrease}} $15.85 billion (2020) <ref>{{Cite web|url=https://www.investmentnews.com/top-5-largest-robo-advisers-by-aum-204294|title = Top 5 largest robo-advisers by AUM|date = 22 March 2021}}</ref>
| aum = $75 billion (2024)<ref name=2024-aum />
| num_employees = {{increase}} 238 <ref> https://craft.co/wealthfront </ref>
| num_employees = 238 <ref>[https://craft.co/wealthfront Wealthfront]</ref>
| parent = [[UBS]]
| foundation = {{Start date and age|2008}}<br>[[Redwood City, California]]
| foundation = {{Start date and age|2008}}<br />[[Redwood City, California]]
| homepage = {{official URL}}
| homepage = {{official URL}}
}}
}}


'''Wealthfront Inc.''' is an [[Robo-advisor|automated investment service]] firm based in [[Palo Alto, California|Palo Alto]], [[California]],<ref name="techcrunch1">{{cite web|url=https://techcrunch.com/2014/01/13/automated-investment-services-company-wealthfront-now-manages-over-538m-in-assets-up-450-percent-over-past-year/|title=Automated Investment Services Company Wealthfront Now Manages Over $538M In Assets, Up 450 Percent Over The Past Year|date=2014-01-13|author=Leena Rao|accessdate=2014-08-22}}</ref><ref name="riabiz">{{cite web|url=http://www.riabiz.com/a/5022384834740224/andy-rachleff-is-out-as-ceo-of-wealthfront-as-former-linkedin-star-takes-his-plac|title=Andy Rachleff is out as CEO of Wealthfront as former LinkedIn star takes his place|date=2014-01-30|author=Brooke Southall|accessdate=2014-08-22}}</ref><ref name="bloomberg">{{cite news|last1=Saitto|first1=Serena|title=Wealthfront Said to Be Raising $30 Million Led by Index|url=https://www.bloomberg.com/news/2014-03-24/wealthfront-said-to-be-raising-30-million-led-by-index.html|accessdate=22 August 2014|agency=Bloomberg L.P.|publisher=Bloomberg News|date=25 March 2014}}</ref><ref name="cnbc">{{cite web|url=https://www.cnbc.com/id/101714841|title= The 2014 CNBC Disruptor 50 List|website= [[CNBC]]|date= 17 June 2014|accessdate=2014-08-22}}</ref> founded by [[Andy Rachleff]] and Dan Carroll in 2008.<ref name="forbes">{{cite web|url=https://www.forbes.com/sites/ericsavitz/2012/03/01/wealthfront-asset-manager-targets-valleys-nouveau-riche/|title=WealthFront: Asset Manager Targets Valley's Nouveau Riche|date=2012-03-01|author=Eric Savitz|website=[[Forbes]]|accessdate=2014-08-22}}</ref><ref name="techcrunch2">{{cite web|url=https://techcrunch.com/2014/04/02/automated-investment-service-wealthfront-raises-35m-from-index-ribbit-capital/|title=Automated Investment Service Wealthfront Raises $35M From Index, Ribbit Capital|author=Leena Rao|date=2014-04-02|accessdate=2014-08-22}}</ref> As of September 2019, Wealthfront had $21 billion [[Assets under management|AUM]] across 400,000 accounts.<ref>{{Cite web|date=2020-10-02|title=2020 Robo-Advisors With the Most AUM - And the Winner Is....|url=https://www.roboadvisorpros.com/robo-advisors-with-most-aum-assets-under-management/|access-date=2021-02-14|website=Robo-Advisor Pros|language=en-US}}</ref>
'''Wealthfront Inc.''' is an [[Robo-advisor|automated investment service]] firm based in [[Palo Alto, California|Palo Alto]], [[California]],<ref name="techcrunch1">{{cite web|url=https://techcrunch.com/2014/01/13/automated-investment-services-company-wealthfront-now-manages-over-538m-in-assets-up-450-percent-over-past-year/|title=Automated Investment Services Company Wealthfront Now Manages Over $538M In Assets, Up 450 Percent Over The Past Year|date=2014-01-13|author=Leena Rao|accessdate=2014-08-22}}</ref><ref name="riabiz">{{cite web|url=http://www.riabiz.com/a/5022384834740224/andy-rachleff-is-out-as-ceo-of-wealthfront-as-former-linkedin-star-takes-his-plac|title=Andy Rachleff is out as CEO of Wealthfront as former LinkedIn star takes his place|date=2014-01-30|author=Brooke Southall|accessdate=2014-08-22}}</ref><ref name="bloomberg">{{cite news|last1=Saitto|first1=Serena|title=Wealthfront Said to Be Raising $30 Million Led by Index|url=https://www.bloomberg.com/news/2014-03-24/wealthfront-said-to-be-raising-30-million-led-by-index.html|accessdate=22 August 2014|agency=Bloomberg L.P.|publisher=Bloomberg News|date=25 March 2014}}</ref><ref name="cnbc">{{cite web|url=https://www.cnbc.com/2014/06/17/disruptors-in-2014-wealthfront.html|title= The 2014 CNBC Disruptor 50 List|website= [[CNBC]]|date= 17 June 2014|access-date=2014-08-22}}</ref> founded by [[Andy Rachleff]] and Dan Carroll in 2008.<ref name="forbes">{{cite web|url=https://www.forbes.com/sites/ericsavitz/2012/03/01/wealthfront-asset-manager-targets-valleys-nouveau-riche/|title=WealthFront: Asset Manager Targets Valley's Nouveau Riche|date=2012-03-01|author=Eric Savitz|website=[[Forbes]]|accessdate=2014-08-22}}</ref><ref name="techcrunch2">{{cite web|url=https://techcrunch.com/2014/04/02/automated-investment-service-wealthfront-raises-35m-from-index-ribbit-capital/|title=Automated Investment Service Wealthfront Raises $35M From Index, Ribbit Capital|author=Leena Rao|date=2014-04-02|accessdate=2014-08-22}}</ref> {{as of|2024|October}}, Wealthfront had over $75&nbsp;billion [[Assets under management|AUM]] across more than 1,000,000 accounts.<ref name="2024-aum">{{Cite web |title=Give all your money a place to grow {{!}} Wealthfront |url=https://www.wealthfront.com/ |access-date=2024-09-27 |website=www.wealthfront.com |language=en}}</ref>


==History==
==History==
Wealthfront was founded by [[Benchmark (venture capital firm)|Benchmark]] co-founder [[Andy Rachleff]] and Dan Carroll in 2008 as kaChing, a [[mutual fund]] analysis company, before pivoting into [[wealth management]].<ref name="caching">{{cite web|url=https://techcrunch.com/2009/12/15/kaching-funding/|title=kaChing Raises $7.5 Million To Turn Mutual Funds On Their Heads|date=2009-12-15|author=Jason Kincaid|accessdate=2015-03-19}}</ref><ref name=forbes /><ref name=bloomberg /><ref name=investorplace /> Rachleff was the firm's founding [[chief executive officer|CEO]].<ref name=investorplace /> In December 2012, the firm started [[Wash sale#Tax Loss Harvesting|tax-loss harvesting]] for accounts of more than $100,000.<ref name="wired">{{cite magazine|url=https://www.wired.com/2012/10/mitt-romney-wealthfront-taxes/|title=Now Tech Plebes Can Dodge Taxes Like a Former Governor|date=2012-10-09|author=Marcus Wohlsen|magazine=Wired|accessdate=2014-08-22}}</ref><ref name="techcrunch3">{{cite web|url=https://techcrunch.com/2012/10/09/wealthfront-tax-loss-harvesting/|title=Financial Planning Startup Wealthfront Woos Silicon Valley Workers With A Once-Secret Investment Trick|date=2012-10-09|author=Kim-Mai Cutler|accessdate=2014-08-22}}</ref>
Wealthfront was founded by [[Benchmark (venture capital firm)|Benchmark]] co-founders [[Andy Rachleff]] and Dan Carroll in 2008 as kaChing, a [[mutual fund]] analysis company, before pivoting into [[wealth management]].<ref name="caching">{{cite web|url=https://techcrunch.com/2009/12/15/kaching-funding/|title=kaChing Raises $7.5 Million To Turn Mutual Funds On Their Heads|date=2009-12-15|author=Jason Kincaid|accessdate=2015-03-19}}</ref><ref name=forbes /><ref name=bloomberg /><ref name=investorplace /> Rachleff was the firm's founding [[chief executive officer|CEO]].<ref name=investorplace /> In December 2012, the firm started [[Wash sale#Tax Loss Harvesting|tax-loss harvesting]] for accounts of more than $100,000.<ref name="wired">{{cite magazine|url=https://www.wired.com/2012/10/mitt-romney-wealthfront-taxes/|title=Now Tech Plebes Can Dodge Taxes Like a Former Governor|date=2012-10-09|author=Marcus Wohlsen|magazine=Wired|accessdate=2014-08-22}}</ref><ref name="techcrunch3">{{cite web|url=https://techcrunch.com/2012/10/09/wealthfront-tax-loss-harvesting/|title=Financial Planning Startup Wealthfront Woos Silicon Valley Workers With A Once-Secret Investment Trick|date=2012-10-09|author=Kim-Mai Cutler|accessdate=2014-08-22}}</ref>


The company started 2013 with $97 million in assets under management and grew by 450% in one year.<ref name=techcrunch2 /> In 2013, Wealthfront introduced "direct indexing", a tax-loss harvesting platform that purchases the individual securities of an investment portfolio.<ref name="riabiz2">{{cite web | url = http://www.riabiz.com/a/4952379384397824/way-ahead-of-the-industrys-clock-wealthfronts-high-net-worth-cat-leaps-out-of-the-bag----keeping-one-robo-pivot-ahead-of-schwab | title = Wealthfront's high-net-worth cat leaps out of the bag -- keeping it one robo 'pivot' ahead of Schwab | publisher = RIA Biz | date = 19 December 2014 | accessdate = 27 January 2015 | author = Wommack, Sanders}}</ref> Between January 2014 and October 2016, [[Adam Nash (executive)|Adam Nash]] was Wealthfront's CEO.<ref name="riabiz" /> Founder Andy Rachleff retook the role in 2016.<ref>{{Cite web|title=Exclusive: Wealthfront's Founder Reclaims CEO Role as Current Chief Steps Down|url=https://fortune.com/2016/10/31/wealthfront-andy-rachleff/|website=Fortune|language=en|access-date=2020-05-10}}</ref>
The company started 2013 with $97 million in assets under management and grew by 450% in one year.<ref name=techcrunch2 /> In 2013, Wealthfront introduced "direct indexing", a tax-loss harvesting platform that purchases the individual securities of an investment portfolio.<ref name="riabiz2">{{cite web | url = http://www.riabiz.com/a/4952379384397824/way-ahead-of-the-industrys-clock-wealthfronts-high-net-worth-cat-leaps-out-of-the-bag----keeping-one-robo-pivot-ahead-of-schwab | title = Wealthfront's high-net-worth cat leaps out of the bag -- keeping it one robo 'pivot' ahead of Schwab | publisher = RIA Biz | date = 19 December 2014 | accessdate = 27 January 2015 | author = Wommack, Sanders}}</ref> Between January 2014 and October 2016, [[Adam Nash (executive)|Adam Nash]] was Wealthfront's CEO.<ref name="riabiz" /> Founder Andy Rachleff retook the role in 2016.<ref>{{Cite web|title=Exclusive: Wealthfront's Founder Reclaims CEO Role as Current Chief Steps Down|url=https://fortune.com/2016/10/31/wealthfront-andy-rachleff/|website=Fortune|language=en|access-date=2020-05-10}}</ref>
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In 2016, Wealthfront launched a partnership with the state of Nevada to launch a [[529 plan|529 tax-advantaged college savings plan]]. In the previous year, Nevada passed approval on a new tax credit for employers who provide fund matching to employees participating in 529 savings programs.<ref>{{cite web|url=http://www.financial-planning.com/news/wealthfront-leads-robo-expansion-into-college-savings|title=Wealthfront leads robo expansion into college savings plans|author=Andrea Davis|date=2016-06-03|accessdate=2016-07-14}}</ref> Andy Rachleff is currently the executive chairman and [[chief executive officer]]. In January 2018, Wealthfront launched homeownership planning tool for Path.<ref>{{Cite web|url=http://www.investmentnews.com/article/20180129/FREE/180129923/wealthfront-app-to-help-millennials-with-this-lofty-goal|title=Wealthfront app to help millennials with this lofty goal|last=Neal|first=Ryan W.|website=www.investmentnews.com|date=29 January 2018|access-date=2018-05-17}}</ref><ref>{{Cite news|url=http://finovate.com/wealthfront-launches-homeownership-planning-tool/|title=Wealthfront Launches Homeownership Planning Tool - Finovate|date=2018-01-30|work=Finovate|access-date=2018-05-17|language=en-US}}</ref> In January 2020, Wealthfront was listed in [[Business Insider]]'s Top 10 Best Robo Advisors in 2020.<ref>{{Cite web|url=https://www.businessinsider.com/best-robo-advisors|title=Top robo advisors in 2020: Performance reviews, returns, and comparisons|last=Meola|first=Andrew|website=Business Insider|access-date=2020-03-17}}</ref>
In 2016, Wealthfront launched a partnership with the state of Nevada to launch a [[529 plan|529 tax-advantaged college savings plan]]. In the previous year, Nevada passed approval on a new tax credit for employers who provide fund matching to employees participating in 529 savings programs.<ref>{{cite web|url=http://www.financial-planning.com/news/wealthfront-leads-robo-expansion-into-college-savings|title=Wealthfront leads robo expansion into college savings plans|author=Andrea Davis|date=2016-06-03|accessdate=2016-07-14}}</ref> Andy Rachleff is currently the executive chairman and [[chief executive officer]]. In January 2018, Wealthfront launched homeownership planning tool for Path.<ref>{{Cite web|url=http://www.investmentnews.com/article/20180129/FREE/180129923/wealthfront-app-to-help-millennials-with-this-lofty-goal|title=Wealthfront app to help millennials with this lofty goal|last=Neal|first=Ryan W.|website=www.investmentnews.com|date=29 January 2018|access-date=2018-05-17}}</ref><ref>{{Cite news|url=http://finovate.com/wealthfront-launches-homeownership-planning-tool/|title=Wealthfront Launches Homeownership Planning Tool - Finovate|date=2018-01-30|work=Finovate|access-date=2018-05-17|language=en-US}}</ref> In January 2020, Wealthfront was listed in [[Business Insider]]'s Top 10 Best Robo Advisors in 2020.<ref>{{Cite web|url=https://www.businessinsider.com/best-robo-advisors|title=Top robo advisors in 2020: Performance reviews, returns, and comparisons|last=Meola|first=Andrew|website=Business Insider|access-date=2020-03-17}}</ref>


In January 2022, [[UBS]] agreed to acquire Wealthfront for $1.4 billion.<ref>{{Cite news|date=2022-01-26|title=UBS buys Wealthfront in $1.4 bln deal to widen U.S. reach|language=en|work=Financial Post|url=https://financialpost.com/pmn/business-pmn/ubs-buys-wealthfront-in-1-4-bln-deal-to-widen-u-s-reach|access-date=2022-01-26}}</ref> The acquisition was mutually terminated in September 2022 with both companies not providing a reason.<ref>{{cite web |url=https://www.bloomberg.com/news/articles/2022-09-05/ubs-growth-strategy-in-us-dented-after-wealthfront-deal-spiked |title=UBS Growth Plans in US Dented After Wealthfront Deal Fails |date=2022-09-05 |work=[[Bloomberg News]] |first=Myriam |last=Balezou}}</ref><ref name=barrons2022>{{cite news | url=https://www.barrons.com/advisor/articles/ubs-wealthfront-cancel-merger-robo-advisor-51662157295 | title=UBS Planned to Buy Robo-Advisor Wealthfront. Now the Deal's off |work=[[Barron's (newspaper)|Barron's]] |first=Ross |last=Snel |date=2022-09-02}}</ref> UBS announced that it would instead invest in a $69.7{{nbsp}}million note convertible into Wealthfront shares, valuing the latter at its acquisition price.<ref name=barrons2022 />
In June 2020, Wealthfront adopted a new mission statement: "Our mission is to build a financial system that favors people, not institutions." Wealthfront goes on to explain that "in order to favor people, financial service companies will need to build delightful, software-based products. Only through software can you lower the cost of delivering a service enough to make money with your clients and not from them."<ref>{{Cite web|date=2020-06-24|title=Wealthfront's New Mission|url=https://blog.wealthfront.com/wealthfronts-new-mission/|access-date=2021-02-18|website=Wealthfront Blog|language=en}}</ref>

In January 2022, UBS agreed to acquire Wealthfront for $1.4 billion. <ref>{{Cite news|date=2022-01-26|title=UBS buys Wealthfront in $1.4 bln deal to widen U.S. reach|language=en|work=Financial Post|url=https://financialpost.com/pmn/business-pmn/ubs-buys-wealthfront-in-1-4-bln-deal-to-widen-u-s-reach|access-date=2022-01-26}}</ref>


==Cash account==
==Cash account==
In February 2019, Wealthfront introduced a cash account, a [[Online savings account|high interest savings account]].<ref>{{Cite web|date=2019-02-14|title=Introducing the Wealthfront Cash Account|url=https://blog.wealthfront.com/introducing-wealthfront-cash-account/|access-date=2021-02-16|website=Wealthfront Blog|language=en}}</ref> The cash account has an interest rate that tracks the [[federal funds rate]], is [[Federal Deposit Insurance Corporation|FDIC]] insured up to $1 million, and has an account minimum of $1. Wealthfront is able to offer the $1 million FDIC insurance because it deposits its clients' cash account funds in a network of partner banks including [[Citibank]], [[HSBC Bank USA|HSBC]], and [[Wells Fargo]].<ref>{{Cite web|title=Enjoy high-interest checking with no account fees {{!}} Wealthfront|url=https://www.wealthfront.com/cash|access-date=2021-02-16|website=www.wealthfront.com|language=en}}</ref><ref>{{Cite web|url=https://www.moneyunder30.com/wealthfronts-cash-account|access-date=2021-02-16|website=www.moneyunder30.com|title=Wealthfront's Cash Account: What It is & How to Use It}}</ref>
In February 2019, Wealthfront introduced a cash account, a [[Online savings account|high interest savings account]].<ref>{{Cite web|date=2019-02-14|title=Introducing the Wealthfront Cash Account|url=https://blog.wealthfront.com/introducing-wealthfront-cash-account/|access-date=2021-02-16|website=Wealthfront Blog|language=en}}</ref> The cash account has an interest rate that tracks the [[federal funds rate]], is [[Federal Deposit Insurance Corporation|FDIC]] insured up to $8 million, and has an account minimum of $1. Wealthfront is able to offer the $8 million FDIC insurance because it deposits its clients' cash account funds in a network of partner banks including [[Citibank]], [[HSBC Bank USA|HSBC]], and [[Wells Fargo]].<ref>{{Cite web|title=Enjoy high-interest checking with no account fees {{!}} Wealthfront|url=https://www.wealthfront.com/cash|access-date=2021-02-16|website=www.wealthfront.com|language=en}}</ref><ref>{{Cite web|url=https://www.moneyunder30.com/wealthfronts-cash-account|access-date=2021-02-16|website=www.moneyunder30.com|title=Wealthfront's Cash Account: What It is & How to Use It}}</ref>


In June 2020, Wealthfront added checking features to this account including direct deposit, bill pay, and ATM access.<ref>{{Cite web|date=2020-06-29|title=The Wealthfront Cash Account Now Comes With Checking Features|url=https://blog.wealthfront.com/the-wealthfront-cash-account-now-comes-with-checking-features/|access-date=2021-02-16|website=Wealthfront Blog|language=en}}</ref>
In June 2020, Wealthfront added checking features to this account including direct deposit, bill pay, and ATM access.<ref>{{Cite web|date=2020-06-29|title=The Wealthfront Cash Account Now Comes With Checking Features|url=https://blog.wealthfront.com/the-wealthfront-cash-account-now-comes-with-checking-features/|access-date=2021-02-16|website=Wealthfront Blog|language=en}}</ref>


The cash account was originally available only to clients with an existing investment account. In August 2020, Wealthfront made the cash account generally available.<ref>{{Cite web|date=2019-03-19|title=Start Earning 2.24% APY on Your Cash Today|url=https://blog.wealthfront.com/start-earning-2-24-apy-on-your-cash-today/|access-date=2021-02-16|website=Wealthfront Blog|language=en}}</ref>
The cash account was originally available only to clients with an existing investment account. In August 2020, Wealthfront made the cash account generally available.<ref>{{Cite web|date=2019-03-19|title=Start Earning 2.24% APY on Your Cash Today|url=https://blog.wealthfront.com/start-earning-2-24-apy-on-your-cash-today/|access-date=2021-02-16|website=Wealthfront Blog|language=en}}</ref>

Wealthfront uses [[Green Dot Corporation|Green Dot Bank]] for its individual cash accounts' routing and account numbers, and for debit cards linked to individual cash accounts.<ref>{{Cite web |last=Wealthfront |date=2024-04-30 |title=What's Green Dot Bank? |url=https://support.wealthfront.com/hc/en-us/articles/360044160871-What-s-Green-Dot-Bank |access-date=2024-06-12}}</ref>


==Fee structure==
==Fee structure==
Line 39: Line 40:


==Finances==
==Finances==
The company has received funding from [[Benchmark Capital]], [[DAG Ventures]], [[Index Ventures]], [[The Social+Capital Partnership]] and individuals, including [[Marc Andreessen]], [[Ben Horowitz]] and [[Jeff Jordan (venture capitalist)|Jeff Jordan]].<ref name="investorplace">{{cite web|url=http://investorplace.com/ipo-playbook/interview-wealthfront-ceo-and-founder-andy-rachleff/|title=Interview: Wealthfront CEO and Founder Andy Rachleff|date=2012-02-07|author=Tom Taulli|accessdate=2014-08-22}}</ref> In April 2014, Wealthfront raised $35 million in a funding round led by [[Index Ventures]], Ribbit Capital and Benchmark Capital.<ref name="dailynews">{{cite news|url=http://www.dailynewsen.com/business/funding-roundup-wealthfront-raises-35-million-reports-450-growth-h2465405.html|title=Funding Roundup: Wealthfront Raises $35 Million, Reports 450% Growth|newspaper=Daily News|date=2014-04-04|accessdate=2014-08-22}}</ref> The funding round brought the firm's total funding to $65.5 million.<ref name="entrepreneur">{{cite web|url=http://www.entrepreneur.com/article/234657|title=High-Tech Investing Startup for Millennials Hits $1 Billion in Assets|date=2014-06-13|author=Gabrielle Karol|accessdate=2014-08-22}}</ref>
The company has received funding from [[Benchmark Capital]], [[DAG Ventures]], [[Index Ventures]], [[Social Capital (venture capital)|Social Capital]] and individuals, including [[Marc Andreessen]] and [[Jeff Jordan (venture capitalist)|Jeff Jordan]].<ref name="investorplace">{{cite web|url=http://investorplace.com/ipo-playbook/interview-wealthfront-ceo-and-founder-andy-rachleff/|title=Interview: Wealthfront CEO and Founder Andy Rachleff|date=2012-02-07|author=Tom Taulli|accessdate=2014-08-22}}</ref> In April 2014, Wealthfront raised $35 million in a funding round led by Index Ventures, Ribbit Capital and Benchmark Capital.<ref name="dailynews">{{cite news|url=http://www.dailynewsen.com/business/funding-roundup-wealthfront-raises-35-million-reports-450-growth-h2465405.html|title=Funding Roundup: Wealthfront Raises $35 Million, Reports 450% Growth|newspaper=Daily News|date=2014-04-04|accessdate=2014-08-22}}</ref> The funding round brought the firm's total funding to $65.5 million.<ref name="entrepreneur">{{cite web|url=http://www.entrepreneur.com/article/234657|title=High-Tech Investing Startup for Millennials Hits $1 Billion in Assets|date=2014-06-13|author=Gabrielle Karol|accessdate=2014-08-22}}</ref>


==See also==
==See also==
Line 51: Line 52:


[[Category:Robo-advisors]]
[[Category:Robo-advisors]]
[[Category:2008 establishments in California]]
[[Category:Financial technology companies]]
[[Category:Financial services companies established in 2008]]
[[Category:Financial services companies established in 2008]]
[[Category:Companies based in Redwood City, California]]
[[Category:Financial services companies based in California]]
[[Category:Companies based in Palo Alto, California]]
[[Category:American companies established in 2008]]
[[Category:American companies established in 2008]]

Latest revision as of 02:16, 11 November 2024

Wealthfront Inc.
FormerlykaChing (2008–2010)
IndustryPersonal finance, Stock exchanges, Finance
Founded2008; 16 years ago (2008)
Redwood City, California
Founders
Key people
AUM$75 billion (2024)[1]
Number of employees
238 [2]
Websitewww.wealthfront.com Edit this at Wikidata

Wealthfront Inc. is an automated investment service firm based in Palo Alto, California,[3][4][5][6] founded by Andy Rachleff and Dan Carroll in 2008.[7][8] As of October 2024, Wealthfront had over $75 billion AUM across more than 1,000,000 accounts.[1]

History

[edit]

Wealthfront was founded by Benchmark co-founders Andy Rachleff and Dan Carroll in 2008 as kaChing, a mutual fund analysis company, before pivoting into wealth management.[9][7][5][10] Rachleff was the firm's founding CEO.[10] In December 2012, the firm started tax-loss harvesting for accounts of more than $100,000.[11][12]

The company started 2013 with $97 million in assets under management and grew by 450% in one year.[8] In 2013, Wealthfront introduced "direct indexing", a tax-loss harvesting platform that purchases the individual securities of an investment portfolio.[13] Between January 2014 and October 2016, Adam Nash was Wealthfront's CEO.[4] Founder Andy Rachleff retook the role in 2016.[14]

In 2016, Wealthfront launched a partnership with the state of Nevada to launch a 529 tax-advantaged college savings plan. In the previous year, Nevada passed approval on a new tax credit for employers who provide fund matching to employees participating in 529 savings programs.[15] Andy Rachleff is currently the executive chairman and chief executive officer. In January 2018, Wealthfront launched homeownership planning tool for Path.[16][17] In January 2020, Wealthfront was listed in Business Insider's Top 10 Best Robo Advisors in 2020.[18]

In January 2022, UBS agreed to acquire Wealthfront for $1.4 billion.[19] The acquisition was mutually terminated in September 2022 with both companies not providing a reason.[20][21] UBS announced that it would instead invest in a $69.7 million note convertible into Wealthfront shares, valuing the latter at its acquisition price.[21]

Cash account

[edit]

In February 2019, Wealthfront introduced a cash account, a high interest savings account.[22] The cash account has an interest rate that tracks the federal funds rate, is FDIC insured up to $8 million, and has an account minimum of $1. Wealthfront is able to offer the $8 million FDIC insurance because it deposits its clients' cash account funds in a network of partner banks including Citibank, HSBC, and Wells Fargo.[23][24]

In June 2020, Wealthfront added checking features to this account including direct deposit, bill pay, and ATM access.[25]

The cash account was originally available only to clients with an existing investment account. In August 2020, Wealthfront made the cash account generally available.[26]

Wealthfront uses Green Dot Bank for its individual cash accounts' routing and account numbers, and for debit cards linked to individual cash accounts.[27]

Fee structure

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Wealthfront charges an advisory fee of 0.25% on funds it invests for its clients. Only investment accounts are charged this fee (cash accounts are not). Wealthfront periodically offers a fee waiver of $5,000 if clients sign-up from affiliate links. Additionally, clients can earn a $5,000 fee waiver for new client referrals; the new client must start using the service, and the fee waiver will be eliminated if the new client leaves the service. Both the referrer and the referee receive the $5,000 fee waiver.

Wealthfront's investment account minimum is $500.[28][29]

Finances

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The company has received funding from Benchmark Capital, DAG Ventures, Index Ventures, Social Capital and individuals, including Marc Andreessen and Jeff Jordan.[10] In April 2014, Wealthfront raised $35 million in a funding round led by Index Ventures, Ribbit Capital and Benchmark Capital.[30] The funding round brought the firm's total funding to $65.5 million.[31]

See also

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References

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  1. ^ a b "Give all your money a place to grow | Wealthfront". www.wealthfront.com. Retrieved 2024-09-27.
  2. ^ Wealthfront
  3. ^ Leena Rao (2014-01-13). "Automated Investment Services Company Wealthfront Now Manages Over $538M In Assets, Up 450 Percent Over The Past Year". Retrieved 2014-08-22.
  4. ^ a b Brooke Southall (2014-01-30). "Andy Rachleff is out as CEO of Wealthfront as former LinkedIn star takes his place". Retrieved 2014-08-22.
  5. ^ a b Saitto, Serena (25 March 2014). "Wealthfront Said to Be Raising $30 Million Led by Index". Bloomberg News. Bloomberg L.P. Retrieved 22 August 2014.
  6. ^ "The 2014 CNBC Disruptor 50 List". CNBC. 17 June 2014. Retrieved 2014-08-22.
  7. ^ a b Eric Savitz (2012-03-01). "WealthFront: Asset Manager Targets Valley's Nouveau Riche". Forbes. Retrieved 2014-08-22.
  8. ^ a b Leena Rao (2014-04-02). "Automated Investment Service Wealthfront Raises $35M From Index, Ribbit Capital". Retrieved 2014-08-22.
  9. ^ Jason Kincaid (2009-12-15). "kaChing Raises $7.5 Million To Turn Mutual Funds On Their Heads". Retrieved 2015-03-19.
  10. ^ a b c Tom Taulli (2012-02-07). "Interview: Wealthfront CEO and Founder Andy Rachleff". Retrieved 2014-08-22.
  11. ^ Marcus Wohlsen (2012-10-09). "Now Tech Plebes Can Dodge Taxes Like a Former Governor". Wired. Retrieved 2014-08-22.
  12. ^ Kim-Mai Cutler (2012-10-09). "Financial Planning Startup Wealthfront Woos Silicon Valley Workers With A Once-Secret Investment Trick". Retrieved 2014-08-22.
  13. ^ Wommack, Sanders (19 December 2014). "Wealthfront's high-net-worth cat leaps out of the bag -- keeping it one robo 'pivot' ahead of Schwab". RIA Biz. Retrieved 27 January 2015.
  14. ^ "Exclusive: Wealthfront's Founder Reclaims CEO Role as Current Chief Steps Down". Fortune. Retrieved 2020-05-10.
  15. ^ Andrea Davis (2016-06-03). "Wealthfront leads robo expansion into college savings plans". Retrieved 2016-07-14.
  16. ^ Neal, Ryan W. (29 January 2018). "Wealthfront app to help millennials with this lofty goal". www.investmentnews.com. Retrieved 2018-05-17.
  17. ^ "Wealthfront Launches Homeownership Planning Tool - Finovate". Finovate. 2018-01-30. Retrieved 2018-05-17.
  18. ^ Meola, Andrew. "Top robo advisors in 2020: Performance reviews, returns, and comparisons". Business Insider. Retrieved 2020-03-17.
  19. ^ "UBS buys Wealthfront in $1.4 bln deal to widen U.S. reach". Financial Post. 2022-01-26. Retrieved 2022-01-26.
  20. ^ Balezou, Myriam (2022-09-05). "UBS Growth Plans in US Dented After Wealthfront Deal Fails". Bloomberg News.
  21. ^ a b Snel, Ross (2022-09-02). "UBS Planned to Buy Robo-Advisor Wealthfront. Now the Deal's off". Barron's.
  22. ^ "Introducing the Wealthfront Cash Account". Wealthfront Blog. 2019-02-14. Retrieved 2021-02-16.
  23. ^ "Enjoy high-interest checking with no account fees | Wealthfront". www.wealthfront.com. Retrieved 2021-02-16.
  24. ^ "Wealthfront's Cash Account: What It is & How to Use It". www.moneyunder30.com. Retrieved 2021-02-16.
  25. ^ "The Wealthfront Cash Account Now Comes With Checking Features". Wealthfront Blog. 2020-06-29. Retrieved 2021-02-16.
  26. ^ "Start Earning 2.24% APY on Your Cash Today". Wealthfront Blog. 2019-03-19. Retrieved 2021-02-16.
  27. ^ Wealthfront (2024-04-30). "What's Green Dot Bank?". Retrieved 2024-06-12.
  28. ^ Carey, Theresa W. "Wealthfront Review". Investopedia. Retrieved 2021-02-15.
  29. ^ "Referrals: What's the Wealthfront Invite Program?". Wealthfront Support. Retrieved 2021-02-15.
  30. ^ "Funding Roundup: Wealthfront Raises $35 Million, Reports 450% Growth". Daily News. 2014-04-04. Retrieved 2014-08-22.
  31. ^ Gabrielle Karol (2014-06-13). "High-Tech Investing Startup for Millennials Hits $1 Billion in Assets". Retrieved 2014-08-22.
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