Our software invests your money in a portfolio of low-cost index funds spread across global asset classes. Since
no one can predict how the market will perform, we focus on factors we can influence: tax, cost, and risk.
Every day, our software works to lower your tax bill through various strategies, including
We only charge one small 0.25% annual fee and choose
low-cost index funds, so you keep more of your return.
We invest your money across the right mix of asset classes for your risk tolerance. To maintain this
diversification, we automatically rebalance your portfolio.
Timing the market just doesn’t work
Wall Street "gurus" and TV personalities like Jim Cramer may tempt you into believing that outperforming the
market is possible. But historical data and academic research has proven otherwise.
Over a one-year period, about 85% of funds that tried to time the market failed to perform as well as the S&P 500
(an index that tracks the performance of the 500 largest public companies in the US). This underperformance is
consistent even over longer time periods.
Know the difference:
stock-picking vs. Wealthfront
Stock-pickers buy and sell individual stocks or funds based on their best guess at what they’ll be worth in the
future. But data shows that stock-picking
doesn't beat the market
in the long run. That’s why we buy and hold low-cost globally diversified index funds, and only sell them to lower
your taxes or keep you diversified.
Stock picking is better if you prefer
You prefer to think of investing as a thrilling game.
You want to spend time and money trying to find the next hot stock knowing full well that holding single stocks
increases your chance of loss.
Wealthfront is better if you prefer
We buffer you against downturns and focus on steady returns.
All our accounts follow the same time-tested principles to manage your risk, lower your costs, and minimize your
taxes. Whether you're saving for college, retirement, or just want to grow your money for the future, we'll help
you choose the right account to use.
These let you dip into your money whenever you need it (with automated features to lower your taxes).
Your comfort zone is expressed as a risk score. This score is based on three factors: your age, your financial
situation, and your attitude toward risk.
We manage every
aspect of investing
We automatically rebalance your investments, selling ones that rise above your target allocation and buying more
of the ones that fall below it. The cherry on top: we aim to do this when the benefits are bigger than the likely
8 ways we lower your taxes
A high tax bill can destroy your return. We work relentlessly to make sure this doesn’t happen to you.
Get started with a few clicks, then never lift a finger
This is how well portfolios with our most common risk score, 8, have done since our launch in 2011.1
This rate is after fees, pre-tax, and annualized.
Let’s say you opened an investment account with us in 2011, deposited your savings, then never added another cent.
Today, with an annual return of 9.15%, your savings would have nearly doubled. That
beats any earnings you could have made with a savings account during the same period.
Of course, your return will depend on your risk score and what the market is up to. See how these factors have
historically affected performance below.
Explore how our portfolios are currently growing
These rates are after-fees, pre-tax, and annualized.
Our fee is simple
When you invest elsewhere, you can typically expect
a bunch of fees: commissions, transfer fees, maintenance fees, inventory markups, PFOFs… the list goes on.
But with us, there are only two costs:
Advisory fee (0.25%)
This is our annual fee for managing your account. Most managers charge you 4x more, around 1%.2