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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

Tuesday, October 19, 2010 – 8:47 PM by Elizabeth MacBride
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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.

Related Moves

Wealthfront cedes to four years of investors clamoring for crypto by taking on expensive third-party vendor that Betterment rules out

The Redwood City, Calif., robo-advisor turned a hard 'no' into a soft 'yes' by dealing with Grayscale and its 200 basis-point-plus fees, which its robo rival in NYC -- also without a crypto path -- finds ludicrous.

August 14, 2021 – 2:20 AM

Wealthfront's unlikely tapping of Sheila Bair and Tom Curry signals likely push to gain a bank charter, analysts say

The Redwood City robo-advisor's addition of two renowned former chief banking regulators brings legitimacy and guidance that could lead to a margin-fattening bank charter and help solve the robo-advisor's problem of high client acquisition costs.

December 31, 2020 – 4:37 AM

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

Andy Rachleff cans the old 'democratizing' mission statement at his robo; The 14,200 one-man Ed Jones branches may become branch banks; Steve Leivent consolidates power at SS&C.

July 3, 2020 – 1:12 AM


Mentioned in this article:

Wealthfront
Portfolio Management System
Top Executive: Andy Rachleff




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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