Custom Portfolio Options

Part
01
of six
Part
01

Folio - Product Overview

Folio Investing offers customizable Ready-to-Go investment portfolios or allows investors to build their portfolios from scratch. These pre-made, customizable, Ready-to-Go portfolios are based on specific investment needs and areas grouped into ten categories as a start-off for investors. These include Target Date RTG, Low Volatility RTGs, Asset Allocation RTGs, Bond RTGs, Fundamental RTGs, Geographic RTGs, Investment Style RTGs, Market Index RTGs, Sector/Industry RTGs, and Strategy RTGs.

TYPES OF CUSTOM PORTFOLIOS

Folio Investing offers custom-made “Ready-to-Go” investment portfolios, a build-your-own custom portfolio, and a combination of both. Allowing no limit on the number of accounts clients may have, Folio Investing offers over 160 RTGS under the ten general headings: Target Date RTGs, Low Volatility RTGs, Asset Allocation RTGs, Bond RTGs, Fundamental RTGs, Geographic RTGs, Investment Style RTGs, Market Index RTGs, Sector/Industry RTGs, and Strategy RTGs. These RTGs provide a starting point for investors and can be further customized based on basic security.

Ready-to-Go Investment Portfolios
Folio Investment is known for its use of RTGs, which are pre-built portfolios with a specific investment strategy in mind. Based on these specific investment strategies, RTGs can be grouped into ten basic categories which are seen as starting points for investors. RTGs give investors a space to gain comfort in customizing and even building their portfolios, utilizing their preferences and strategies.

Target Date RTGs
These RTGs become necessary when investors have a specific objective, for example, college or retirement. They are easy to manage security settings which are adjusted over time to keep a balance of volatility and performance. They have a goal of increasing potential return while decreasing risk as the target date approaches.

Low Volatility RTGs
Low Volatility RTGs promote precisely what the name states, low volatility. These RTGs allow for steady gains and losses, none occurring to the regular degree of the market. Folio Investment offers two types, the Low Volatility folio comprising ETFs and stocks, and the Low Volatility ETF consisting of only ETFs.

Asset Allocation RTGs
This category of RTGs allows for broad market exposure, with diversity being found through the investment in varying asset classes which perform in different ways at different times. These folios follow asset allocation models. This is based on changing time frames and risk factors focused around the use of ETFs and towards the goal of diversification.

Bond RTGs
Promoting a consistent stream of income, the investment in fixed securities such as bonds limits the risks investors may have when dealing with more fluid accounts. Folio Investing offers bond folios made up of ETFs. These ETFs do not usually carry sales charges or minimums and are seen having lower expenses than other mutual funds.

Fundamental RTGs
Information gained from the “fundamental” analysis of public company information such as dividends, sales, book value, and cash flow is used to determine the security constraints of fundamental RTGs. This allows investors to make more knowledgeable and assertive investment decisions.

Geographic RTGs
Folio investments provide their clients with the benefit of the international trading market with their geographic RTGs. These RTGs allow exposure to international markets, which are sometimes seen to have varying economic cycles. With the use of ADRs and ETFs, investors are provided with securities outside the US, exposing them to both developed and emerging markets they can tap into.

Investment Style RTGs
Folio Investing offers investment style RTGs. This is based on company public information such as market capitalization rates, investment style RTGs provide small-cap, mid-cap, and large-cap companies with opportunities for growth, blend, value, and income earning.

Market Index RTGs
Another offering of Folio Investing is US equity indices. This includes the S&P 500, and the NASDAQ 100, and Market Index RTGs capture broad market movement.

Sector/Industry RTGs
Sector/Industry RTGs focus on investments occurring in specific industries, such as the aerospace industry. Though these RTGs zone in on specific investor interests and may exhibit high growth potential, they may also be considered volatile.

Strategy RTGs
Strategy RTGs is another offering of Folio Investing. These RTGs are geared towards the more creative investors and utilize many investment strategies.

Customization Options

Investment portfolio customization first takes into consideration the overall goal of the investment. That is, whether the goals investors have are long term or short term. Short term goals would require more conservative investment, with the money being required to become fluid in a short time as opposed to a goal towards retirement which makes room for more aggressive investments.

Risk tolerance is another guide to customizing one’s portfolio with Folio Investing. If an investor is aware that they cannot manage too much risk, their portfolio can be tailored to suit these needs.

Folio Investments also allows customization under “personal values”. This is where security options can be selected to screen for industries with the use of anything not following the values of the investors, for example, tobacco, gambling, and weapons and so on.

Other customizable options offered by Folio Investments include:

ESG Funds

In 2016 Folio Investing partnered with investment company First Affirmative Financial Network. The focus of First Affirmative Financial Network is sustainable, responsible, impact (SRI) investing and the integration of environmental, social and governance (ESG) strategies. Investor portfolios can now be filtered based on sector, and social issues allowing investments to be aligned to core values. The ESG factor is a way of telling the market behavior of companies investors are eyeing.

Folio Investing has been one of the first companies to offer social filtering on an online investment market platform. ESG statistics allow investors to tell the best and worst companies in specific categories of Folio Investments. In partnership with First Affirmative Financial, Folio Investing offers three lines of sustainable, responsible and ESG investments. The first is a custom sustainable investment solution. This includes portfolios with stocks and ETFs that reflect the values, ethical preferences and financial goals of the investors. Secondly, there is a Multi-Manager Account. These are investment models that integrate ESG guidelines into the investment analysis process. Thirdly there is Managed Mutual Fund. This is a portfolio of mutual funds integrating the ESG criteria into the investment analysis process.

Folio Investment allows for the filtering of large-cap equity, with both the Large-Cap ETF folio and the Large-Cap Blend folio. These folios follow the US S&P 500 market indices where the Large-Cap Blend folio is arguably less volatile than the Large-Cap ETF which has the same volatility as the overall market.

Part
02
of six
Part
02

Wealthfront - Product Overview

Homeownership, Early Retirement, Time Off for Travel and College are the four main types of custom portfolios offered by Wealthfront.

We utilized the official company website and blog published by Wealthfront to extract all the relevant information. We ensured that all the sources were from the last 24 months. To extract the information regarding the types of custom ESG (Environmental, Social, and Governance) funds, we utilized investment industry publications such as Investopedia to define the types of ESG funds and researched the Wealthfront website and blog based on this definition.

TYPES OF CUSTOM PORTFOLIOS:

Wealthfront offers four main types of custom portfolios: Homeownership, Early Retirement, Time Off for Travel and College. To customize each portfolio, the company first, projects the clients net worth over time, then, incorporates third-party data to explore the impact of each scenario on the client's finances and finally, provides the client with a comprehensive cost of each scenario.

CUSTOMIZATION OPTIONS

  • Homeownership: Wealthfront provides clients with a custom mortgage plan reflecting the all-in costs of home ownership based on the client's actual finances. The customer can customize their portfolio on the basis of affordability, time and location, the value of the property and available investment options. The portfolio mainly depends on the time-horizon requested by each customer.
  • Early retirement: Wealthfront provides clients with a custom retirement plan based on the personal saving goals, current net worth, primary residence, expected future expenses, financial situation and employment status of the client. The types of customization available include various retirement plans such as Traditional and Roth IRA, SEP IRA, 401(k) Rollover and Investment account.
  • Time Off for Travel: Wealthfront provides clients with a custom travel expense plan based on the client's financial accounts, duration of the travel, travel style, cost of living, income during the trip, employment status and current housing costs.
  • College: Wealthfront provides clients with a custom college plan based on the all-in cost of the selected college, current savings, amount to be covered and investment in a 529 plan account.

CUSTOMIZING RISK LEVELS:

The risk levels can be customized based on the significant life events such as major life change, significant fluctuation in the liquid net worth, change in income status and the risk tolerance of the client. However, Wealthfront does not advise clients to change their risk levels based on market performance. Wealthfront usually rebalances the risk score of a client within one business day.

  • The type of general risks that can be customized include advisory risk, software risk, volatility and correlation risk, liquidity and valuation risk, credit risk, legislative and tax risk, tax-loss harvesting risk, potentially high levels of trading risk, foreign investing and emerging markets risk, and ETF risks including net asset valuations and tracking error, inflation, currency, and interest rate risks.
  • Specific risks associated with college savings that can be customized include special nature of plan interests, municipal fund securities, relatively short investment time horizon, limited investment direction, liquidity risk, potential changes to the plan, status of federal and state law and regulations governing a plan, eligibility for financial aid, and no guarantee that investments will cover qualified higher education expenses.

TYPES OF CUSTOM ESG (ENVIRONMENTAL, SOCIAL, AND GOVERNANCE) FUNDS

Wealthfront offers exchange-traded funds (ETFs) and other financial products that follow the ESG (Environmental, Social, and Governance) criteria. The types of ETFs that Wealthfront allows its customers to personalize are as follows:

  • Vanguard’s Tax-Exempt Bond ETF: This fund can be customized on the basis of the asset class to optimize the account's risk-adjusted returns, fee, liquidity, tracking error and securities lending policy.
  • PassivePlus: This investment strategy includes various ESG funds such as Tax-Loss Harvesting, Stock-level Tax-Loss Harvesting, Risk Parity and Smart Beta according to the client's account type, such as individual, joint, and trust investment accounts. These funds allow the clients to invest in up to 500 individual stocks from the S&P 500 Index for smaller accounts, and a completion ETF of smaller companies and up to 1,000 stocks from the S&P 1500 Index for larger accounts.

SCREENING OF LARGE-CAP EQUITY

Wealthfront allows the screening of large-cap equity using the S&P 500 Index as the baseline, only for accounts between $100,000 and $500,000. This option is available under the Stock-level Tax-Loss Harvesting plan which allows clients to customize their stock portfolios using a combination of Vanguard Large-Cap ETF (VV), Vanguard Small Cap ETF (VB), Vanguard S&P 500 ETF (VOO), and the Vanguard Extended Market ETF (VXF). The company screens large-cap equities by mapping the frequency of risk score changes against the S&P 500 Index.
Part
03
of six
Part
03

OpenInvest - Product Overview

OpenInvest does not offer different types of custom portfolios. OpenInvest allows for the customization of all investment portfolios according to the values of the investor. The investor can choose from a range of issues they value and exclude equities from their portfolio based on the extent to which the company aligns with their values. Below is an overview of our findings.

OPENINVEST

OpenInvest is a separately managed account (SMA) solution where individuals and institutions that care about sustainability can customize their passive index investments to reflect their mission and values. They allow institutions to omit the middleman, thus avoiding fees, while "enabling customization to their values, measurable social and environmental impact data, participation in shareholder campaigns and the ability to vote their proxies."

LOW-RISK INVESTMENT STRATEGY

OpenInvest uses a form of investing called passive investing for all portfolios, thus they build a diversified portfolio that mimics market performance in the long run. The two primary strategies are diversification of the portfolio and reducing fees. They diversify the portfolio in order to minimize the risk of loss by spreading out investments over different companies, different sectors or different types of assets.

PORTFOLIO CUSTOMIZATION

OpenInvest does not offer different types of custom portfolios to their client. They allow each client to customize their portfolio according to their values. Thus, portfolios differ from client to client. All of their portfolios have a basic structure. The basic structure consists of 1) a bond fund (fixed income), and 2) a collection of equities that replicate the performance of Standard & Poor 500 (S&P500) but reflect the investor's values.

With regard to the bond fund, the investor can customize by choosing either a traditional bond (BND) or a green bond (CGAFX).

With regard to the collection of equities, the client can customize the equities in their portfolio according to their values. In order to achieve customization based on values, OpenInvest starts with a universe of securities. Currently, their universe of securities is the S&P500 as they believe this is the best way to track the overall performance of the stock market. Next, they identify issues of concern and collect information on how well the companies in the S&P500 align with these issues. The S&P500 companies are classified as "good", "bad" or "neutral" for a particular issue.

Their client customizes their basket of equities by stating what their values are and indicating which issues they care about. Based on the identified issues, the "bad companies" are excluded from the portfolio. The portfolio is then constructed from "good companies" and "neutral companies" to balance out factors such as "sector diversification, beta and average weighted market cap." Re-balancing of the portfolio occurs with their proprietary algorithms. The result is a portfolio that has at least 60 stocks and closely matches the characteristics of the S&P 500.

CUSTOM ESG FUNDS

OpenInvest does not offer custom environmental, social and corporate governance (ESG) funds which are further personalized. OpenInvest applies Social Responsible Investing (SRI). The Forum for Sustainable and Responsible Investment (USSIF) defines SRI as “an investment discipline that considers environmental, social and corporate governance (ESG) criteria to generate long-term competitive financial returns and positive societal impact.” With SRI, equities are screened to identify companies with better social, environmental, or governance track-records. OpenInvest applies SRI to any and all asset classes, as OpenInvest believes that the investor does not have to choose between their ethics and their returns.

CUSTOMIZATION OPTIONS

As mentioned above, OpenInvest determines how companies align with certain issues and classifies them. These issues are at the heart of the customization process. The ESG issues according to which portfolios are customized are listed below and in four cases the methodologies applied when screening companies, are provided.

Four issues identified by OpenInvest and their methodology:
Other ESG issues:
  • Divest from Dark Money: thus choosing not to invest in companies that support candidates and shape policy at state and national level
  • The Dakota Access Pipeline and choosing not to support a project that could harm the environment and threaten native rights.
  • Deforestation and the corporations that drive this issue.
  • The production of fossil fuels and choosing not to invest in companies that produce fossil fuels.
  • The Prison Industrial Complex and choosing not to invest in companies that are profiting from America’s defect incarceration system
  • The bad conditions in which refugees live and choosing to invest in companies that help refugee populations.
  • Supporting ethical supply chains
  • The prevalence of tobacco use and choosing not to invest in the big tobacco companies.
  • Standing up to Donald Trump.
  • Investing in women in the workplace.

SCREENING LARGE CAP EQUITY

To determine whether OpenInvest allows screening of large-cap equity while using the S&P500 as a baseline, we sought to better understand the S&P500 and large-cap equities. According to Investopedia "The Standard & Poor's 500 Index (S&P 500) is an index of 500 of the largest U.S. companies, listed on the New York Stock Exchange or NASDAQ, selected by the Standard & Poor's Index Committee based on market capitalization." Furthermore, they state that the "S&P 500 Index funds allow investors to establish a core allocation in large-cap U.S. equities" on the advice of Warren Buffet. Lastly, "S&P 500 Index funds seek to replicate the performance of the benchmark index by investing in S&P 500 constituents with similar weights." Based on the above, the S&P500 consists of only large-cap equity companies.

It appears that OpenInvest allows screening of large-cap equity while using the S&P500 index as a baseline. This conclusion is based on the fact that OpenInvest chooses the S&P500 index as their universe of securities, thus establishing the S&P500 as their baseline. The S&P500 consists only of large-cap equity. OpenInvest, furthermore, screens the large-cap equity companies on issues important to the client. Lastly, after customization, they re-balance the portfolio to follow the characteristics of the S&P500, their baseline.

CONCLUSION

OpenInvest allows their clients to customize their investment portfolio according to their values. Their values are reflected in issues identified by Open Invest. OpenInvest screens S&P500 companies according to the extent to which they align with the identified issues.


Part
04
of six
Part
04

OpenInvest - Success Metrics

OpenInvest, which had approximately $1.5 million in assets under management in January 2017, currently has $42 million in assets under management, of which $11 million comes from individual investors.

The number of customers (accounts) at OpenInvest has grown from 150 in 2017 to 396 in 2019, at a 62.48% CAGR.

Methodology

We started our research by looking OpenInvest's official website. However, we were not able to find any information on the assets under management (AUM) or customer growth. We only found information on the founding year.

Next, we looked through industry related websites such as OZY, Fin Extra, and CrowdFund Insider. From OZY, we were able to find the number of customers and AUM as of January 2017.

We then looked through databases, reports and articles on sites such as Craft, Robo Advisor, Owler and Investor.com, among others. The report from Robo Advisor had information on the total AUM and accounts at OpenInvest as of 2018.

Lastly, we looked through government reports for current information on OpenInvest. We were able to find the company's SEC filing, which provided information on the AUM and customers as of March 2019. We were therefore able to find several data points that provide relevant information.

Our findings and calculations are detailed below.

Calculations

Growth of customers = ((Customers in year N - Customers in year N-1) / Customers in year N-1)*100
  • 2018 growth = ((296-150)/150)*100 = 97.33%
  • 2019 growth = ((396-296)/296)*100 = 33.78%
To get the growth in customers between 2017 and 2019, we used a CAGR calculator. We found that the customers had grown at a CAGR of 62.48% over that period.

Assets Under Management

OpenInvest was founded in 2015 and its investment portfolio platform was introduced in 2016.

In January 2017, OpenInvest had collected approximately $1.5 million in assets under management. According to Investor Junkie, they had $5.8 million in assets under management as of 2018.

In March 2019, the total assets under management (AUM) of OpenInvest is $42 million and out of this, approximately $11 million comes from individual investors.

Number of Customers

In January 2017, four months after OpenInvest launched their investment portfolio platform, they reported drawing 150 accounts. In 2018, this amount had almost doubled (a 97.33% increase) to 296 accounts.

Currently, OpenInvest reports having 396 accounts managed under its investment platform (a 33.78% increase from 2018), in which 394 accounts are individual clients.

In the two years from January 2017 to March 2019, the number of customers at OpenInvest has grown at a CAGR of 62.48%.
Part
05
of six
Part
05

Wealthfront - Success Metrics

Wealthfront has $16 billion in Assets Under Management as of the end of winter, 2019. Wealthfront grew from 100,000 client accounts at the beginning of 2017 to 281,405 client accounts at the beginning of 2019. These numbers give us an annual growth rate of 65.75 percent per year over the last two years.

ASSETS UNDER MANAGEMENT (AUM)

Wealthfront was founded in 2011. By the beginning of 2014, Wealthfront was managing over $500 million in client assets. This leaped to $1 billion in total AUM by the fiscal month of May/June 2014 and $1.7 Billion in client assets at the end of that year. Wealthfront had $2 billion in AUM in March 2015. Growth in 2015 slowed, having reported $2.4 billion at the end of the second quarter, followed by $2.5 billion in AUM in Q3, and $2.8 billion at the end of the fiscal year. At the beginning of 2017, it had $5 billion in AUM. In the second quarter of 2017, Wealthfront experienced the largest quarterly AUM growth in its history, jumping by $1.76 billion in a single quarter. By June 2017, it was managing $6.76 billion. Wealthfront's AUM as of January 2019 was $11 billion. The most current review indicates that Wealthfront's AUM as of the end of winter 2019 is $16 billion.

Wealthfront's growth rate has been on the rise since 2016. Its AUM grew 120 percent from January 2017 to January 2019, for an average annual growth rate of 48.3 percent. From the beginning of 2014 through January 2019 Wealthfront's AUM increased annually at an average rate of 116.5 percent. The growth rate thus far in 2019 has been approximately 45 percent, which could translate into a 200 percent increase in AUM for the fiscal year 2019. Under the leadership of CEO Adam Nash, Wealthfront's AUM grew more than 45 times between 2013 and 2016.

Some growth rates noted above were derived using a Compound Annual Growth Rate (CAGR) calculator, linked here.

CUSTOMER GROWTH RATE

There are conflicting accounts of Wealthfront's client account numbers in 2017. Multiple sources report 100,000 accounts in January 2017. However, one source reports 120,000 customer accounts by April 2017, while a different source reports 165,000 accounts at the end of Q1 2017.

Regardless, Wealthfront has added new client accounts every quarter since 2012. Under the leadership of CEO Adam Nash, Wealthfront's client base grew over 60 times from 2013 to 2016.

Wealthfront reported a total of 281,405 client accounts as of January 2019. Using just the high-confidence 100,000 and 281,405 client account numbers from the years 2017 and 2019, we see an average annual rate of 67.75 percent between the beginning of 2017 and the beginning of 2019. This growth rate was derived using a CAGR calculator, linked here.

CONCLUSION

Wealthfront grew from $500 million in client assets at the beginning of 2014 to $16 billion in AUM by early 2019. Client accounts have grown every quarter since 2012 and reached 281,405 client accounts in January 2019 with an average annual growth rate of 65.75 percent over the last two years.
Part
06
of six
Part
06

Folio Investing - Success Metrics

While there is no publicly available information to fully answer your question, we've used the available data to pull together key findings on Folio Investing's basic information, customers served, and funding. We were unable to find information regarding the total assets under management or customer growth in the company. Below you'll find an outline of our research methodology to better understand why the information you've requested is publicly unavailable, as well as a deep dive into our findings.

Methodology

We began our research by looking for precompiled info from credible sources like the company website. Here, we checked for information on total assets under management and the customer growth rate for the company over the last 3-5 years. We scanned through each page of the website such as customer testimonials, press releases, blogs, and financial reports. We checked here first because investment firms often have info on their total AUM and customer growth displayed on their website or in some relevant reports. However, Folio Investments did not have any relevant information on their website. Next, we checked other business-related websites like brokercheck and fintel where the details of investment or brokerage firms are often found, but unfortunately, there were no details on Folio Investing. Next, we searched for paid reports from companies such as Bain and McKinsey. Our goal was to find reports related to firms known for online investing, however, no such reports were found. During this strategy, the only info that was found was various press releases from the firm in the past years or reviews on the firm from multiple websites like Investormint and Slickbucks.

Our next strategy was to try to triangulate the info by first finding out the total number of clients served by the company and then look for the individual companies and find out the amount of their portfolio is managed or is under the custody of Folio Investing. During this strategy, I was able to find clients such as Brookwood North Investment Advisors and Ellevest Inc. In each company's form ADV, the amount of its portfolio under the custody of Folio Investing was mentioned. However, it was not clear if these are the only clients that the company is serving. Hence, adding their total portfolio values and presenting it as an estimate without proof of the number of clients the company serves would not be an accurate method. The company was founded in the year 2000 and having just six clients was simply not believable without proof.

For customer growth, a triangulation was not possible because of the lack of alternate data. We tried to find any measurable metric that can be compared to the growth of their customers in the last 3-5 years, however, the company, because it is privately held, has not published anything on their growth since the year 2000. We also tried to check the testimonials in hope of some of them mentioning anything about their relationship with the firm since the time they started, but we could not cite any possible way to use this as alternate data to triangulate the information.

Our last strategy was to try to break down the request and look for the missing information on individual trademarks held under FOLIOfn, Inc. We looked for the missing info in other segments like Folio Institutional®, Folio Advisor®, Folio Client®, FOLIOfn®, Folios®, and VIA Folio®. The goal was to find data on the total AUM managed and customer growth. If found, we would have presented the data as an assumption that the same would apply to Folio Investing, however, no information was found in any of these segments. Instead, we found multiple reports and press releases citing these segments acquiring other investment firms, but nothing on customer growth or total AUM.

Helpful Findings

BASIC INFORMATION
  • Folio Investing has a company size of 51-200 employees.
  • Their headquarters are in McLean, VA.
  • The company was founded in 2002 and is a privately held firm.
  • They specialize in investing, online brokerage, ETFs, stocks, mutual funds, SRI/ESG security filters, dollar-based investing, fractional shares, and tax management tools.

CUSTOMERS SERVED
  • Folio Investing caters to active and passive investors.
  • Unlike brokers, who primarily target active, self-directed investors, Folio Investing serves both traders and investors.
  • The investors best served are those who are looking to build diversified portfolios, pay one, flat monthly fee and are ready to invest fully using fractional shares.

FUNDING

COMPANIES WHOSE ASSETS ARE UNDER FOLIO INVESTING
Brookwood North Investment Advisors, LLC's $3,855,099 is managed by Folio.
Ellevest's $174,809,347 is managed by Folio.
Sources
Sources

From Part 01
From Part 05
Quotes
  • "Wealthfront has grown to manage over $16 billion as of Winter 2019."
Quotes
  • "Wealthfront now manages over $1.7 Billion in client assets, a leap of more than $1.2 Billion in 2014 alone. "
  • "After starting the year at an unprecedented $500M in client assets, we were humbled to have our thought leadership recognized by the industry when we were named ETF Strategist of the Year."
Quotes
  • "Under Adam’s leadership, our client base grew over 60x, our assets over 45x and we became the top brand in the nascent industry of automated investment services."
Quotes
  • "When Wealthfront hit $1 Billion in client assets in May 2014, it proved to be a tipping point for the whole industry."
Quotes
  • "Wealthfront managed less than $100 million in client assets when I joined, and had many skeptics."
  • "They say that “the first billion is the hardest,” and there is some truth to that. It took Wealthfront less than 2.5 years to reach $1 billion in assets, but we added our second billion in less than 9 months."
Quotes
  • "When we launched Wealthfront in December 2011, the thought of getting to $1 billion in assets under management seemed audacious. Today, I am proud to announce that not only has Wealthfront attracted more than $1 billion under management; we have managed to do so in less than two and a half years since launch. "
Quotes
  • " As of Q1’17, Betterment managed approximately 330K accounts, nearly 2X as many accounts as Wealthfront (at 165K accounts). "
  • " As of their respective filings in Q1’17 and Q2’17, Wealthfront had added 65K accounts, representing 65% growth, while Betterment added 52K accounts and grew 19%. At this pace, Wealthfront could surpass Betterment within three years. "
  • "Wealthfront clients average $40.9K per account, compared to Betterment’s account average of $27.4K. Wealthfront also has a higher proportion of high net worth (HNI) customers, which account for 25 – 50% of Wealthfront’s AUM, vs. <25% for Betterment."
  • "In terms of customer growth rate, both Betterment and Wealthfront have grown client accounts every quarter since Q1’12. In Q2’17, Betterment’s accounts were up 80% compared to the same quarter last year, while Wealthfront grew accounts by 142% in the same time period."
  • "Over roughly the same period, Wealthfront launched new services, including the Path retirement planning product and a portfolio line of credit, and additionally added $1.76B in AUM and approximately 65K accounts from 1/26/2017 – 6/26/2017. This represented a 35% increase in AUM and 65% increase in accounts for Wealthfront since the beginning of 2017, while Betterment grew AUM by 23% and accounts by 19% in the same period."
  • "Wealthfront set a new record for AUM growth in Q2’17, adding approximately $1.76B in AUM since the previous quarter. This was Wealthfront’s largest quarterly dollar increase in AUM."
  • "As of their June 2017 filings, Betterment managed $9.06B, while Wealthfront managed $6.76B. Betterment surpassed Wealthfront for the first time in Q4’15, when it hit approximately $3B in AUM, compared to Wealthfront which reported $2.6B."
Quotes
  • "Wealthfront, which was founded in 2011, had about $2.8 billion in assets under management at the end of last quarter, according to its 13F report submitted to the SEC last week. That compares to a reported $2.5 billion in AUM in the third quarter, following a second quarter of $2.4 billion. This time last year, the firm had $1.7 billion in AUM."
Quotes
  • "Wealthfront now counts nearly $6 billion in assets under management from 120,000 customers."
Quotes
  • "As disclosed in Wealthfront’s Form ADV Part 1, Wealthfront manages over $2,612,809,400 in client assets through our software based financial advisor service on a discretionary basis. This total is calculated using the closing U.S. market prices from August 10, 2015. Wealthfront does not manage assets on a nondiscretionary basis."
Quotes
  • "This was the CAGR calculator used to calculate customer account growth."