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Wealthfront Reaches More Than $1 Billion Assets Under Management

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Automated investment service, Wealthfront, announced this week that it now has $1 billion in assets under management. This is fast-paced growth, considering it had $100 million under management in early 2013, $500 million by December of 2013, and $800 million in March of this year.

This growth confirms the trend we’ve been seeing in the explosion of automated wealth management fintech services, the oft-called robo-advisors.

U.S.-based companies such as Betterment, LearnVest, Personal Capital, SigFig and European companies Nutmeg, Money on Toast, and rplan are all vying for consumers’ portfolios, trying to compete with superior algorithms.

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Palo Alto-based Wealthfront differentiates itself by offering a Single-Stock Diversification service. This service enables users with a large portion of their net worth tied up in a single stock to transfer their holdings to Wealthfront, which will slowly sell off the stocks commission free, and with a tax-aware approach. While the service is currently available only for Twitter employees, ex-employees, and its investors, Wealthfront plans to open it up for more companies in the future.

Wealthfront demonstrated at FinovateStartup 2009, when it went by the name KaChing.