Portfolio Review will analyze your current investment portfolio. It provides data-driven, actionable recommendations to improve net-of-fee, after-tax, risk-adjusted return.REVIEW YOUR CURRENT PORTFOLIO
|Index Funds Over Mutual Funds||+2.1%|
|Estimated Additional Return||+4.6%|
This performance checklist and interactive performance graph compares the estimated time-weighted returns of a Wealthfront investment with the returns experienced by an average 20-year U.S. Mutual Fund investor as described by DALBAR.
The graph and amounts are obtained by adding the projected additional rates of return from various Wealthfront investment features (as described here) to the average U.S. Mutual Fund investor return from DALBAR (3.17% /year) and compounding the result on an annual basis over 20 years. This tool, therefore, is intended to highlight the possible differences in earnings if you use Wealthfront’s investment approach rather than the approach applied by the typical U.S. Mutual Fund investor and where your earnings are reinvested over a 20-year period.
This tool is not intended to predict portfolio earnings or performance, nor is it a guarantee of future performance or earnings. Actual investors on Wealthfront may experience different results from the results shown. The performance checklist does not represent the results of actual trading using client assets. Full Disclosure
Arnott, Robert D., Andrew Berkin, and Jia Ye. 2000. “How Well Have Taxable Investors Been Served in the 1980s and 1990s?”
We simulated the potential after-tax benefit of our tax-loss harvesting and found that it added an average of at least 1.35% annually, net of commissions. The results are hypothetical only and should not be relied upon for predicting future performance. See our white paper. Wealthfront’s tax-loss harvesting strategy is available to all taxable accounts.
Wealthfront performed simulations that measured the difference in average annual return between a portfolio that used asset allocations recommended by Fidelity’s free online asset allocation tool and an allocation plan constructed using mean variance optimization, for the same risk tolerance, asset classes (U.S. Stocks, U.S. Bonds and International Stocks) and time period (1987-2010). Annual rebalancing was also assumed for both portfolios.
Swensen, David, Unconventional Success, 2005, pp. 195-96.
Wealthfront performed simulations that measured the difference in average annual return attributable to owning a taxable portfolio consisting of seven asset classes to a portfolio consisting of three asset classes assuming the same risk tolerance for the two portfolios for the period 1987-2010.
The three-asset-class portfolio consisted of U.S. Stocks, U.S. Bonds and International Stocks. Wealthfront’s seven-asset-class portfolio included U.S. Stocks, Foreign Developed Stocks, Emerging Market Stocks, Dividend Growth Stocks, Municipal Bonds, TIPS and Natural Resources. Annual rebalancing was assumed. While the data used for this comparison and the optimal allocation comparison are from sources that Wealthfront believes are reliable, these comparisons represent Wealthfront’s opinion only.
Wealthfront invests your money for you with a minimal amount of work. We monitor your portfolio every day to look for opportunities to rebalance or harvest tax losses. Are you doing the same?INVEST NOW
It’s a bad idea to try to time the market via frequent trades. So, Wealthfront will invest your money in Index Funds that trade very infrequently and try to follow the market rather than attempting to time it.
We take advantage of the tax status of your accounts for best results. We’ll place bonds and real estate assets in your retirement accounts, where they can compound tax-free. We’ll mostly use tax-efficient stocks in taxable accounts.
Our 0.25% of assets fee (a mere $18.75/month for a $100K account) is the only fee we’ll charge you. There are no commissions or account fees for your Wealthfront account.
We construct your investment portfolio from 11 asset classes that include both U.S. and international stocks and bonds.
Learn about the value of diversification.
Don’t just invest, save money on your taxes too. Our Tax-Loss Harvesting feature improves your performance by as much as 1% per year by saving money on your taxes.
We automatically invest your money given your risk score with academically proven approaches like Modern Portfolio Theory. We then monitor and rebalance this portfolio automatically. You just get a great investment - with no hassle and no work.
… Wealthfront is an appealing alternative to putting your money with a Goldman Sachs, UBS or other private wealth manager.
Mr. Rachleff’s aim is to reach out to that Valley demographic — young, good at math, uncomfortable with professional money managers — and make their money grow.
Wealthfront will manage money for a fee of 0.25% a year, using sophisticated algorithms that measure risk tolerance and build a diversified portfolio.
Why trust your money to a Wall Street money manager who charges steep fees when well-designed software can do a better job for a lot less?