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How are fees calculated?

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.

Nothing in this blog should be construed as tax advice, a solicitation or offer, or recommendation, to buy or sell any security. Financial advisory services are only provided to investors who become Wealthfront Inc. clients pursuant to a written agreement, which investors are urged to read carefully, that is available at www.wealthfront.com. All securities involve risk and may result in some loss. For more information please visit www.wealthfront.com or see our Full Disclosure. While the data Wealthfront uses from third parties is believed to be reliable, Wealthfront does not guarantee the accuracy of the information.

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