Each month you are charged an advisory fee equal to 1/365 (1/366 on a leap year) of the annual rate multiplied by the net market value of your invested assets over $10,000 as of close of markets for each day in the month, multiplied by the number of days in a month your money was managed.*
For example, Jane invests $35,000 in a diversified portfolio on Wealthfront. Jane begins investing on April 5th. At the end of April, she will have been invested for a total of 26 days. Wealthfront’s annual fee rate is 0.25 percent. To simplify this example, we will assume that the net market value of Jane’s assets remains $35,000 while invested. Therefore, Jane’s advisory fee for the month of April equals: (0.25% / 365) * (the net market value of managed assets greater than $10,000) for every day on which the assets were managed = (0.25% / 365) * $25,000 * 26 = $4.45.
* Wealthfront will be sunsetting the first $10,000 management for free benefit on March 31, 2018. Clients who sign up on or after April 1, 2018 will not receive their first $10,000 managed for free.
Wealthfront prepared this article for informational purposes and not as an offer, recommendation, or solicitation to buy or sell any security. Wealthfront and its affiliates may rely on information from various sources we believe to be reliable (including clients and other third parties), but cannot guarantee its accuracy or completeness. See our Full Disclosure for more important information.
Wealthfront and its affiliates do not provide tax advice and investors are encouraged to consult with their personal tax advisor. Financial advisory and planning services are only provided to investors who become clients by way of a written agreement. All investing involves risk, including the possible loss of money you invest. Past performance does not guarantee future performance.