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.
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