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Does Wealthfront invest my funds all at once or do dollar cost averaging?

Wealthfront invests your money all at once. The benefit of investing in a portfolio of relatively uncorrelated asset classes is that when one asset class is up, it’s likely others are down. Therefore, the timing of when you invest is relatively unimportant.Vanguard published a white paper on dollar cost averaging for a diversified portfolio and came to the same conclusion.

If you prefer to dollar cost average, we’ve made it convenient for you to schedule deposits into your Wealthfront account via bank transfer (ACH). To set-up a scheduled deposit, log in and click the “Add Funds” button.

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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