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 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) for every day on which the assets were managed = (0.25% / 365) * $35,000 * 26 = $6.23
*If you signed up prior to April 1, 2018, you will receive your first $10,000 managed for free.
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