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Wealthfront, in its sixth pivot as a firm, reduces its robo-advisor's role and puts 'decision-making power where it belongs,' with retail investors

The Palo Alto, Calif., firm will still maintain an RIA, but it'll be more like a self-directed brokerage in allowing investors to play an active role by buying stocks and cryptocurrency.

Author Oisin Breen June 16, 2021 at 1:57 AM
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Dan Carroll: Wealthfront will be the place to invest responsibly, not some Wild West arcade. We can do it in a fiduciary way.



June 16, 2021 — 1:03 PM
They lost their moral compass when they launched the high-fee, under-performing risk parity fund.
Brian Murphy

Brian Murphy

June 16, 2021 — 10:45 PM
Has anyone else come to realize that these guys don't know WTF they're doing? Simply flapping in the wind as a "fast follower" with each new meme that raises any interest in the fintech space. Let me save you the suspense. This is a firm that within 18 months will either be bought out for what many would currently consider too low a valuation, or merged into a second-tier SPAC offering. Performance for their market parity fund is laughable, performance of their allocations are sub-par (too much international in a strong dollar environment). After six pivots it's about time to lay that at the foot of the founders, who seem to consider it visionary to chase everyone else's tails.
Mister Cee

Mister Cee

June 17, 2021 — 1:55 AM
And this is what was supposed to put me out of business 5 years ago?!


June 17, 2021 — 3:50 PM
The whole reason I use wealthfront is because I don't have to do anything. I have weekly auto bank transfers and the website does the work. Hopefully it keeps doing this.

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 at 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 at 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 at 1:12 AM

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Portfolio Management System
Top Executive: Andy Rachleff

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