The Automated Investment Service for Everyone

blog-200x200Wealthfront is the world’s largest and fastest-growing automated investment service (AIS). With more than $800 million in client assets under management, Wealthfront offers the most tax-efficient and low-cost index fund-based solution for long-term investors on the market. Having grown more than 700% since the start of 2013, Wealthfront now provides service to clients across all 50 states and Washington, D.C., with client accounts ranging in size from $5,000 to over $10,000,000.

Wealthfront is on the leading edge of a much larger trend, one catalyzed by a new generation of younger investors. There are 90 million people in the millennial generation with an aggregate net worth of more than $2 Trillion. They have grown up with software and lived through two market crashes. They overwhelmingly seek an investment solution that is automated, index-based and low-cost. They are seeking an automated investment service.

An automated investment service combines world-class financial research with a modern cloud-based architecture to deliver both monitoring and management of your long-term investments at account minimums and costs that are a fraction of traditional approaches. Individual investors have long been shown to underperform the market due to a combination of high costs and behavioral finance errors. An automated investment service can provide every investor with a service that is rational, scalable and secure.

Most importantly, however, is that an automated investment service can manage your long-term investments 24/7 leaving you free to pursue the other things that matter to you; whether that be your family, your career, or your passions.

Investing for the Future

Disrupting an industry managing trillions of dollars requires partners who share our vision. Today, we’re proud to announce we have closed our third round of institutional financing totaling $35 million from some of the best investors in technology. Index Ventures and Ribbit Capital led the round, joined by existing investors The Social+Capital Partnership, Greylock Partners and DAG Ventures. Also joining this round are a few new investors and technology leaders. We’re flattered and excited that these extraordinary partners share our long-term vision.

This significant investment comes with a directed purpose. We believe that in the next 10 years everyone will have an automated investment service. We’ll be using this new capital to invest in the people and technology required to scale, and by doing so accelerate the pace of new features and services to handle more than a thousand times the assets we manage today.

You Can Make a Difference

We are grateful to our clients, not only for your continuous input, feedback and insights but more importantly for your trust. In fact, our rapid growth could not have been possible without your referrals, both offline and online. We remain vigorously dedicated to rewarding your faith with a service that provides you with great investment value.

Over multiple generations, great software companies tend to share one thing in common: a general belief that they can do it better this time. We’re fortunate enough to have assembled not only a world-class investment team led by Burt Malkiel, but also a software team composed of amazingly talented people from companies like Google, Facebook, LinkedIn, Twitter and Apple. Together, we share a belief that this is a once-in-a-generation opportunity to build a meaningful software company in the financial services market.

Wealthfront is just getting started. Come join us on our mission. Apply now to work@wealthfront.com.

 

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5 Responses to “The Automated Investment Service for Everyone”

  1. Lloyd Davies April 2, 2014 at 12:51 pm #

    Adam,
    No doubt you have heard of the recent book by Michael Lewis. Can you comment on what you are doing to ensure that your customers orders are getting routed by whatever broker you are using to the only exchange that appears to be a level playing field, IEX?

    • Andy Rachleff May 18, 2014 at 9:52 am #

      Unfortunately our brokerage partner, Apex Clearing, does not currently offer an API that allows us to choose on which exchange we want an order routed.

  2. Earl Fischer April 5, 2014 at 6:11 am #

    Hello Wealthfront,

    I am 63 year old Automotive electronics engineer. I have always been impressed with silicon valley. However almost everything I read on Wealthfront seems to target millenniums. Can you help retirees with 60% of investments in IRAs or 401Ks and 40 percent in taxable brokerage accounts? Currently I have most of my investments managed by private client at Schwab. I have accumulated enough wealth to retire.

    I am proud to see you all doing so well. God bless this country.

    • Adam Nash April 5, 2014 at 10:38 am #

      Hi Earl,

      Wealthfront markets to millennials because our service, being accessed primarily online, is typically most comfortable for younger investors. However, as a product, we’re proud of the fact that we have clients between the ages of 18 and 93, and offer a wide range of account types (IRAs, Taxable, Joint, Trust, etc).

      That being said, what we don’t offer is a branch where you can walk in and talk to someone. For that, we often recommend people engage with a fee-only or hourly planner. Wealthfront is best suited as an inexpensive way to access an automated, diversified, tax-efficient portfolio, seamlessly linked to your bank account for easy deposits and withdrawals.

      Thanks for your kind words & support.

      Adam

  3. Daniel Murphy April 16, 2014 at 4:11 am #

    Products like Wealthfront make me sad to live in Australia! Unfortunately the small scale of our economy means we don’t get access to services like this (yet?).

    I come from a financial background (trading) but with my own money I only invest passively. Despite being passively invested there is still a decent time requirement to manage purchases, rebalances etc. Additionally doing research on the best ETF’s (cheapest, most liquid, lowest tracking error) would be time consuming even if I had access to the data (which I don’t).

    If I was based in the US I would invest it all with Wealthfront in a heartbeat, honestly for 0.25% it is the bargain of the century.

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