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Two Billion Reasons to Believe

“A revolution is coming — a revolution which will be peaceful if we are wise enough; compassionate if we care enough; successful if we are fortunate enough — But a revolution which is coming whether we will it or not. We can affect its character; we cannot alter its inevitability.”                                                                                                            — Robert Kennedy, May 6, 1966 Like many who join Wealthfront, it all started for me with […]

Happy Holidays from Wealthfront

At Wealthfront, we believe our clients are our one true north. And while we work to make our service better every day, it feels only right this time of year to take a moment to just say thank you. 2014 has been a momentous year for Wealthfront, and we know our success stems directly from the trust and support our clients place in us. When we launched Wealthfront just three years ago in December 2011, no one would have guessed how quickly our service would grow. After starting the year at an unprecedented $500M in client assets, we were humbled to have our thought leadership recognized by the industry when we were named ETF Strategist of the Year. In March […]

Direct Indexing: The Next Generation of Index Investing

One year ago today, Wealthfront became the first and only automated investment service to offer direct indexing with the Wealthfront 500. Direct indexing allows you to own all the stocks that comprise a major index in your own brokerage account, which is far more tax efficient than owning the equivalent index fund. Our research indicated this could generate an incremental annual after-tax return of 2.46% over just owning the S&P 500®. Frankly, we were overwhelmed by the amount of positive feedback from both clients and industry experts. It has been only one year since the launch of the Wealthfront 500, and already over $500 million has been invested in Wealthfront 500 accounts. We thought we were launching a product, but it […]

Why You Shouldn’t Just Invest in the S&P 500

Diversification matters. Diversification is the key to long-term investment success because it can insulate you, to some extent, from losses. If you feel insulated, you are more likely to stay invested and keep investing through market volatility. Being properly diversified also enables the actions that help you during market corrections: rebalancing and tax-loss harvesting. Investors often think they have a diversified portfolio when, actually, they don’t. One of the common questions we get from investors who don’t use Wealthfront is: “Why shouldn’t I just invest in the S&P 500®?” They seem to believe investing in an index that gives them exposure to a broad selection of securities means they have a diversified portfolio. Having a broad selection of securities is […]

The $7 Trillion Opportunity

The best way to predict the future is to invent it.” — Alan Kay We are on the cusp of a momentous inflection point in finance. For the first time in decades, two titanic demographic shifts are happening in the United States simultaneously. The Baby Boom generation, the 78 million Americans born after WWII, have finally reached the edge of one of the most difficult financial transitions in life: the transition to retirement. They are caught between an array of multi-trillion dollar financial superpowers waging battle over the Boomer generation’s $10 to $15 Trillion in liquid assets. Simultaneously, the Millennial generation, the 90 million Americans born between 1981 and 2000, are reaching adulthood. The leading edge of this generation has now reached their […]

Happy Birthday, Tax-Loss Harvesting

Back in October 2012, Wealthfront became the first automated investment service to introduce tax-loss harvesting. While tax-loss harvesting has been around for a long time, it traditionally has only been offered to the ultra-wealthy and it was almost always done just once a year by hand. Wealthfront, of course, offered something different — a service watching your account continuously, every day, looking for opportunities to recognize tax losses while still keeping your portfolio properly diversified. Now two years later, Wealthfront has over $900M in client assets invested in tax-loss harvesting accounts, and in that time we’ve performed over 750,000 free tax-loss harvesting trades for our clients. For no extra charge, Wealthfront provides two different levels of sophisticated tax-loss harvesting for […]

What To Do in a Falling Market

We ran an earlier version of this post on the Wealthfront blog in June 2013 after a turbulent run in the market.  For many, it’s hard to remember that June 2013 was a volatile month given how great 2013 turned out to be by the end of the year. Given the recent market volatility in September 2014, we thought an update of this post with fresh data would be valuable to our readers. The global equity markets have been increasingly turbulent over the past few weeks. The S&P 500 began September at over 2000, and proceeded to drop 2.9% through September to close at 1946.16 on October 1st. Small caps performed more poorly, with the Russell 2000 dropping 7.6% in the same […]

Introducing Ali Rosenthal

At Wealthfront, we believe that everyone deserves sophisticated financial advice. To deliver on that belief, we need more than an audacious mission — we need to build a world-class company. To achieve that goal, we need to attract world-class talent in three major areas: investment research, software development and management. Thus far we’ve made some pretty good progress. We’ve been fortunate to attract financial luminaries like Burt Malkiel and Charley Ellis to our investment team. Our software team includes some of the best from companies like Apple, Facebook, Google and LinkedIn. Our management team includes five professionals who helped build billion-dollar revenue companies that forever changed their industries. Today, we’re thrilled to announce yet another phenomenal executive, Ali Rosenthal, has […]

Introducing Wealthfront for the Workplace

Financial benefits in the workplace have become a hot topic with leading professionals in human resources, and for good reason. Increasingly, companies that focus on attracting and retaining top talent have spent significant time and resources to deeply understand all aspects of their employees’ workplace experience. Simply put, financially healthy employees are more productive, engaged employees. Today, we’re pleased to announce the launch of  Wealthfront for the Workplace, which we’re piloting with several of the fastest growing companies that are focused on attracting and retaining millennial talent. Wealthfront for the Workplace offers employees of participating companies the benefit of a Wealthfront account with up to $100,000 managed for free to encourage saving and investing. As part of the pilot, Wealthfront […]

Welcoming the San Francisco 49ers to Wealthfront

The San Francisco 49ers have always been one of the most respected organizations in professional sports. They have a lot to be proud of. They have five Super Bowl trophies and now a new world-class home at Levi’s® Stadium. As of today, they are also the first professional sports team to help secure the financial health of their front-office employees and alumni with free, automated investment services. The San Francisco 49ers will cover the advisory fees on the first $100,000 each individual invests with Wealthfront. Wealthfront will also provide financial education for both current employees and alumni through its acclaimed seminars. Millennials and the Challenge of Windfalls Wealthfront is designed with the millennial investor in mind, and we learn a […]