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.
Retiring RIA seller David Laidlaw alleges the Carnegie valued his stake on $11.7 million EBITA while pitching potential buyers on $21.3 million.
New tool gives RIAs and family offices AI help vetting private market deals, with some users reportedly halving review time.
Investors got projected returns dressed up as real ones, SEC says
Parents must still act to get the $1,000 federal seed and employer contributions, giving financial advisors a role in the rollout.
FINRA booted Rudy Anguiano from the industry for “conversion - the intentional and unauthorized taking of another person’s property.”
As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
