UBS’ Roboadvisor Wealthfront Announces $50 Billion AUM Milestone

UBS’ Roboadvisor Wealthfront Announces $50 Billion AUM Milestone

by November 20, 2023

Wealthfront, a leading robo-advisor industry, announced that the company now oversees more than $50 billion in assets for over 700,000 clients, largely young professionals across the United States.

This year Wealthfront’s team introduced new product lines, leading to an increase in new clients, a higher share of wallet among existing clients, and additional revenue diversity for the business. Wealthfront’s business is profitable and generates significant cash flow from operations, with EBITDA margins above 40%. The company is on track to grow revenue by over 140% in 2023.

David Fortunato

David Fortunato

“This milestone is a testament to our team’s relentless focus on creating value for our clients and our commitment to building a profitable company that puts clients’ interests above our bottom line,”

said David Fortunato, CEO of Wealthfront.

Startup Competition venture

“Our focus on automation allows us to deliver more value to the client, and we look forward to continuing this work.”

Wealthfront’s mission to build a financial system that favors people, not institutions, drives the team to create immense value for its clients. The company estimates that the service has saved clients over $1 billion in advisory fees compared to a traditional advisor, who, on average, charges a 1% management fee. Furthermore, this year alone, Wealthfront Cash Account clients have earned nearly $700 million in interest. Wealthfront is able to offer clients a 5.00% APY and up to $8 million in FDIC insurance through its partnerships with over 35 banks.

Wealthfront pioneered the robo-advisory industry with the launch of its automated investment service in 2011. Today, nearly every major investment adviser or brokerage firm has attempted to copy the first version of Wealthfront’s automated investment service. In the meantime, the company has continued to innovate, democratizing access to investing along the way and building a trusted financial services company. Through Wealthfront, young professionals in the U.S. can open an investment account with just $500 and access services like those previously only available to institutional investors or those who could afford account minimums that often exceeded $5 million.

Wealthfront has expanded into new areas like cash management, lending, and, most recently, lower-risk investments with its Automated Bond Portfolio. The company is well-positioned to capture the $35 trillion held by young professionals and will continue to address their diverse financial needs. Hitting this milestone only deepens Wealthfront’s dedication to empowering young professionals to achieve their financial goals and shaping the future of personal finance.

UBS Acquired  US based robo-advisor Wealthfront for 1.4 Billion USD in January 2022.

Featured image credit:  David Fortunato, CEO of Wealthfront