Wealthfront

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]

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 $3 million, and has an account minimum of $1. Wealthfront is able to offer the $3 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 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.[27][28]

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.[29] The funding round brought the firm's total funding to $65.5 million.[30]

• Robo-advisor

• Official website