Wealthfront has announced a new investment offering that expands the range of available ETFs and Socially Responsible Investing (SRI) options. The firm is also considering to add crypto.
Wealthfront is thus moving its automated investment services to a new stage and more attractive for young investors who want flexibility with their investments and reassurance they are putting their money in the right place to build long-term wealth.
Dan Carroll, co-founder and Chief Strategy Officer at Wealthfront, commented: “This launch opens up an enormous opportunity for Wealthfront. Our current clients alone have over $50 billion in assets linked to Wealthfront sitting in outside brokerages. Adding the ability for them to invest with Wealthfront based on their values and beliefs and apply the benefit of our automation, will enable them to simplify their investment activities and pursue their goals by trusting the management of those assets to us.”
THe firm, which also offers rebalancing, tax-loss harvesting, fiduciary advice and financial planning tools, found that meme stock trading is more of a fad than mass movement among the younger generations.
Many young investors want a buy-and-hold investment strategy to build wealth for the long term while preserving flexibility to try out different investments along the way. Most importantly, the majority of young investors want good advice that validates their decisions or shows them better options.
As an SEC-registered investment adviser, Wealthfront is legally obligated to provide advice and information, setting itself apart from other financial apps that do not have this obligation.
Not only will clients get Wealthfront’s automation, but they will also be investing their money with a company that has their best interests at heart and can help them build meaningful wealth, rather than riding the rollercoaster of day trading.
Financial literacy advocate and UPenn adjunct professor, Brandon Copeland, has been working with Wealthfront throughout the month of April to help people get over the initial inertia and fear associated with investing and financial planning: “Wealthfront provides a high level of advice and care and is a leader in delivering access to investment opportunities to young and new investors,” he said:
Wealthfront clients are now able to build their own portfolio from a list of ETFs carefully vetted by Wealthfront’s research team, including the expanded SRI options and the ability to add Wealthfront’s US Direct Indexing strategy on its own. The firm is soon adding more ETs and eventually crypto.