Wealthfront employs a transparent and competitive fee structure, ensuring that clients have a clear understanding of the costs associated with using their services. The fee structure consists primarily of an annual advisory fee, which is based on a percentage of the assets under management (AUM). As of the time of writing, Wealthfront charges an annual advisory fee of 0.25% of the AUM. This fee is calculated and deducted on a monthly basis. It’s important to note that the advisory fee is subject to change, and investors should review the most up-to-date fee schedule provided by Wealthfront.

Management Fees

Wealthfront’s management fees are based on a percentage of the assets under management (AUM) in a client’s account. The annual advisory fee is currently set at 0.25% of the AUM. This fee is calculated on a prorated basis and charged on a monthly basis.

For example, if an investor has $10,000 invested with Wealthfront, the annual management fee would amount to $25 ($10,000 x 0.25%). This fee is then divided into monthly instalments, resulting in approximately $2.08 deducted from the account each month.

It’s worth noting that the management fee is subject to change, and investors should review the most up-to-date fee schedule provided by Wealthfront.

Account Fees

Wealthfront does not charge any account setup fees, inactivity fees, or trading fees. Additionally, there are no fees for deposits, withdrawals, or electronic fund transfers (EFTs) made to and from a Wealthfront account.

However, it’s important to be aware of potential fees associated with external factors such as wire transfers, returned ACH transfers, and account transfers. These fees are typically imposed by the financial institutions involved in the transaction rather than by Wealthfront itself.

Other Charges

While Wealthfront’s management fee covers the majority of costs, there are a few additional charges that investors should be aware of:

Expense Ratios: Wealthfront invests client funds in low-cost exchange-traded funds (ETFs) from reputable providers. These ETFs have their own expense ratios, which are charged by the fund providers to cover operating expenses. The expense ratios are built into the performance of the ETFs and indirectly affect the overall cost to the investor. However, Wealthfront focuses on utilising low-cost ETFs to minimise these expenses.

Fund-Specific Fees: Some ETFs may have transaction fees or other charges associated with buying or selling shares. These fees are specific to the individual funds and are not directly charged by Wealthfront. Before investing, it’s important for clients to review the prospectus and information provided by the ETF issuer to understand any fund-specific fees that may apply.