One of the pioneers of robo-advisors has reached a significant new milestone and expects continued exponential growth.
Wealthfront now oversees more than $50 billion for more than 700,000 clients, mostly U.S.-based professionals and the firm is expecting revenue growth of 140% for 2023. It’s also profitable, with EBITDA margins above 40% generating substantial cash flow.
The firm has also launched new products this year, including an automated bond portfolio solution that uses a mix of Treasury and corporate bond ETFs. These have helped it attract new clients, especially among its key demographic of young investors who are experiencing bond investing for the first time.
Wealthfront’s CEO David Fortunato said the firm’s growth is down to the synergy of team and tech.
"This milestone is a testament to our team's relentless focus on creating value for our clients and our commitment to building a profitable company that puts clients' interests above our bottom line," he said. "Our focus on automation allows us to deliver more value to the client, and we look forward to continuing this work."
The firm was founded in 2008 by Andy Rachleff and Dan Carroll and launched automated investing in 2011, the year after Betterment forged a new path for investors.
As well as the robo-advisor, which offers clients a 5.00% APY and up to $8 million in FDIC insurance through its partnerships with over 35 banks, the firm has expanded into areas such as cash management and lending.
Wealthfront ,along with Fidelity Go and Ellevest, was named one of the best performing robo-advisors according to the latest “Robo Report” from Condor Capital Wealth Management.
The move to charge data aggregators fees totaling hundreds of millions of dollars threatens to upend business models across the industry.
The latest snapshot report reveals large firms overwhelmingly account for branches and registrants as trend of net exits from FINRA continues.
Siding with the primary contact in a marriage might make sense at first, but having both parties' interests at heart could open a better way forward.
With more than $13 billion in assets, American Portfolios Advisors closed last October.
Robert D. Kendall brings decades of experience, including roles at DWS Americas and a former investment unit within Morgan Stanley, as he steps into a global leadership position.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
