The company’s focus on client trust, automation, and an expanded product line
have created a highly profitable and growing business
PALO ALTO, Calif., Nov. 16, 2023 /PRNewswire/ — Wealthfront, a leading consumer fintech and pioneer of the robo-advisor industry, is proud to announce that the company now oversees more than $50 billion in assets for over 700,000 clients, largely young professionals across the United States.
This year Wealthfront’s team introduced new product lines, leading to an increase in new clients, a higher share of wallet among existing clients, and additional revenue diversity for the business. Wealthfront’s business is profitable and generates significant cash flow from operations, with EBITDA margins above 40%. The company is on track to grow revenue by over 140% in 2023.
“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,” said David Fortunato, CEO of Wealthfront. “Our focus on automation allows us to deliver more value to the client, and we look forward to continuing this work.”
Wealthfront’s mission to build a financial system that favors people, not institutions, drives the team to create immense value for its clients. The company estimates that the service has saved clients over $1 billion in advisory fees compared to a traditional advisor, who, on average, charges a 1% management fee. Furthermore, this year alone, Wealthfront Cash Account clients have earned nearly $700 million in interest. Wealthfront is able to offer clients a 5.00% APY and up to $8 million in FDIC insurance through its partnerships with over 35 banks.
Wealthfront pioneered the robo-advisory industry with the launch of its automated investment service in 2011. Today, nearly every major investment adviser or brokerage firm has attempted to copy the first version of Wealthfront’s automated investment service. In the meantime, the company has continued to innovate, democratizing access to investing along the way and building a trusted financial services company. Through Wealthfront, young professionals in the U.S. can open an investment account with just $500 and access services like those previously only available to institutional investors or those who could afford account minimums that often exceeded $5 million.
Wealthfront has expanded into new areas like cash management, lending, and, most recently, lower-risk investments with its Automated Bond Portfolio. The company is well-positioned to capture the $35 trillion held by young professionals and will continue to address their diverse financial needs. Hitting this milestone only deepens Wealthfront’s dedication to empowering young professionals to achieve their financial goals and shaping the future of personal finance.
To learn more and open up a Wealthfront Account, please visit https://www.wealthfront.com/
About Wealthfront
Wealthfront integrates investing and saving products to help young professionals build long-term wealth in any market condition. Through software, the company delivers cash management, diversified ETF and bond investing, zero-commission stock investing, and low-cost loans to help sophisticated and new investors learn, lower costs, and grow wealth. Wealthfront is one of the highest-rated financial apps in the Apple App Store and has been named Best Automated Investment App, Best Overall Robo-Advisor, and Best Robo-Advisor in the Portfolio Construction, Portfolio Management, and Goal Planning categories by Investopedia (2023), Best Cash Management Account and Best Investing App by Bankrate (2023), Best Robo-Advisor for Portfolio Options by NerdWallet (2023), and Best Robo-Advisor for DIY Financial Planning by Forbes (2023). The company currently oversees more than $50 billion for over 700,000 clients in the US. To learn more please visit www.wealthfront.com or download the app on the App Store or Google Play.
Contact: Kate Wauck, [email protected]
Disclosures
Nerdwallet, Investopedia, and Forbes (the “Endorsers”) receive cash compensation for referring potential clients to Wealthfront via advertisements placed on their respective websites. The Endorsers and Wealthfront are not associated with one another and have no formal relationship outside of this arrangement.
Bankrate’s endorsement was voluntarily given and Wealthfront has no formal relationship with Bankrate.
The information contained in this communication is provided for general informational purposes only, and should not be construed as investment or tax advice. Nothing in this communication should be construed as a solicitation or offer, or recommendation, to buy or sell any security.
Low cost loans refers to our Portfolio Line of Credit which is a margin lending product offered exclusively to clients of Wealthfront Advisers by Wealthfront Brokerage LLC. You should consider the risks and benefits specific to margin when evaluating your options. Learn more about these risks in the Margin Handbook.
Cash Account is offered by Wealthfront Brokerage LLC (“Wealthfront Brokerage”), a Member of FINRA/SIPC. Neither Wealthfront Brokerage nor any of its affiliates are a bank, and Cash Account is not a checking or savings account. We convey funds to partner banks who accept and maintain deposits, provide the interest rate, and provide FDIC insurance. Investment management and advisory services–which are not FDIC insured–are provided by Wealthfront Advisers LLC (“Wealthfront Advisers”), an SEC-registered investment adviser, and financial planning tools are provided by Wealthfront Software LLC (“Wealthfront”). The Stock Investing Account is a limited-discretion investment product offered by Wealthfront Advisers LLC, an SEC-registered investment advisor.
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SOURCE Wealthfront
