4.3/5 · Very good
Wealthfront
- Best for: Savers who want managed investing and high-yield cash in one app
- What Sets It Apart: Direct indexing from $100,000 at no added fee; up to $8 million of FDIC insurance on cash
- Investments: ETF portfolios customizable from hundreds of funds; S&P 500 and Nasdaq-100 direct indexing; Treasury ladders; stocks you pick; IRAs and a 529 plan
- APY: 3.55% on the Cash Account, with no minimum balance
- Features: Portfolio built from a risk questionnaire and rebalanced for you
- Management Fee: 0.25% a year ($25 on $10,000); 0.09% for S&P 500 Direct, 0.12% for Nasdaq-100 Direct
- Minimum Deposit: $500 for a managed portfolio; $5,000 for S&P 500 or Nasdaq-100 Direct; $1 for the Brokerage Account
- Cost: Fund expense ratios on top; 529 plan about 0.39% to 0.45% a year; no trading or closing fees
- Pros: Tax-loss harvesting and direct indexing in the fee; hundreds of ETFs to customize with; stock picks from $1, commission-free; no account or trading fees; free planning tools
- Cons: No human advisors, even for a fee; $500 minimum; new cash deposits held 2 to 4 days; 529 plan costs up to 0.45% a year; the same funds cost no advisory fee if you buy them yourself
Wealthfront is a robo-advisor, a service that builds and manages a portfolio of low-cost index funds for you, made for savers who would rather not choose funds or adjust the mix themselves. It also holds your spare cash in a high-yield account and can usually move it into investments in minutes.
Key Features
- 0.25% yearly advisory fee, $25 on $10,000, with a $500 minimum
- Tax-loss harvesting at any balance in taxable portfolios, selling funds that have dropped to cut your tax bill
- Direct indexing from $100,000 at no added fee, holding individual stocks in place of a US stock fund to harvest more losses
- Traditional, Roth, and SEP IRAs, 401(k) rollovers, and a 529 college savings plan sponsored by Nevada
- Cash Account paying 3.55% annual percentage yield (APY), with up to $8 million of FDIC insurance through partner banks
Pros
- Tax-loss harvesting and direct indexing included in the 0.25% fee
- Portfolio you can reweight or customize with hundreds of exchange-traded funds (ETFs)
- Brokerage Account for buying your own stocks and ETFs from $1, commission-free
- No account, trading, transfer, or closing fees
- Free tools for clients planning retirement, a home purchase, or time off
Cons
- No human financial advisors, even for an added fee
- $500 minimum to open a managed portfolio
- New Cash Account deposits held 2 to 4 days before they can move out
- 529 plan costs about 0.39% to 0.45% a year in all
- The index ETFs it uses carry no advisory fee if you buy and rebalance them yourself
Savers who want a managed portfolio and a high-yield account for their cash get both in one app, paying 0.25% a year on what they invest, tax-loss harvesting included. Investors who want to talk their plan through with a person should compare financial advisors instead.
Learn more about Wealthfront or see how it compares to the best robo-advisors.
Wealthfront
4.3/5 · Very good
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