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Why big RIAs are taking a risk on Wealthfront

KaChing changes its name, gains 10-fold jump in assets and intrigues the industry with its strategy to reach mass affluent

Author Elizabeth MacBride October 19, 2010 at 8:47 PM
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Wealthfront rang the NASDAQ bell today at a marketing event. Co-founder Dan Carroll said he hopes it's not the last time the venture-backed company rings the bell.

TJ Gilsenan

TJ Gilsenan

October 22, 2010 — 7:23 PM

I think this model has potential with investors of many sizes. Rather than appealing to just the mass affluent, I suspect the digitally literate investor will be attracted as well. As long as we’re talking about straight portfolio management, rather than complex planning issues, there is no reason why someone with a $1mm portfolio wouldn’t chose this platform. If the manager information is accurate, timely, and unbiased an investor of any size, comfortable making his own decisions, could benefit.

It also gives the managers involved an additional presence on the web. Depending on how aggressively Wealthfront markets its services, managers may enjoy some increased web visibility via the Wealthfront site. Savvy managers might consider tracking the clicks to their website from their Wealthfront profile page to get a sense of the traffic.

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Oisín's Bits: Wealthfront drops old mission statement, declares war on institutions and emphasizes banking future • Seeking Utah charter, Edward Jones may become largest bank in US by branch count • After Advent chief leaves, Black Diamond head steps up

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Top Executive: Andy Rachleff

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