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Wealthfront Returns

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#1 TctclMvPhase   Dismal Scientist CAGiversary!   1980 Posts   Joined 11.1 Years Ago  


Posted 30 June 2015 - 04:57 PM

Just found this forum, so I thought I might try a post.


In the past I have mostly used mutual funds because I inherited the practice from my parents, but over the past few years, I noticed that I have been losing out a great deal on returns due to fees.

It was recently that a friend recommended Wealthfront, which based on their FAQs seems to be a programmatic mutual fund based on the advice of Malkiel. The idea being that humans can't consistently beat the market, they only get lucky, which makes the best option to be simply diversify and hold long term because the stock market in the long term averages around an 11% return. There are other services that offer similar programs, but as Malkiel is actually involved with Wealthfront, I took the plunge.

Anyways, in the past few months I have put around 25K into the account, with the calculated return varying from 2.5% to 11%. I am using a relatively high risk portfolio, 9 out of 10, based on their scale.

Has anyone else tried this service or one similar?

I am curious to see what others have seen as returns based on their amount and time invested along with their selected risk profiles.


Has anyone else dropped managed mutuals entirely, in favor of a service like this?

Also, if people are interested, it might be nice to start a kind of invite chain for these services. Wealthfront will manage an additional 5K for free for every accepted invite, so if people decide to use the service, we could pay those savings forward with each new member using the signup link from the last new member.

#2 Casinochips559  


Posted 11 July 2015 - 01:30 AM

Wow, managing 25K is definite wealth. Congrats1

#3 gooflee   CAG Veteran CAGiversary!   71 Posts   Joined 11.5 Years Ago  

Posted 07 August 2015 - 12:02 PM

I have been using betterment which is very similar to wealthfront for the past 4 months.  I have been putting in about $100 a month to get the lower commission charges.  The balance I am currently using is 90 % stock 10 % bonds (high risk)  The first month was great, I had $100 invested and I showed $7 in potential profits.  Currently I am showing a potential loss of $7 after 5 months (I have put in $570 so far).  It currently appears that I am doing no better than if I picked a couple of no fee ETF.  I do like that the bond funds have been paying dividend every month.  This is a cheaper way to invest, but I don't think it is for people expecting to receive high gains.  The computer based trading seems to be getting popular, because I heard that Fidelity and Vanguard now allow people to investing using this strategy.

#4 AvatarGoku   S/0 CAGiversary!   195 Posts   Joined 3.8 Years Ago  


Posted 18 August 2015 - 05:59 AM

Currently I am showing a potential loss of $7 after 5 months (I have put in $570 so far)

Same here! I am at a $5 loss for 3 months. I will stick with it for a full year just to see how it goes