Wealthfront Corp. is a financial services company that offers wealth management and investment advisory services. It operates a robo-advisor that uses algorithms to provide clients with customized investment management, financial planning, and other brokerage products and services. The company offers a broad range of 澳洲幸运5官方开奖结果体彩网:exchange-traded funds (ETFs) managed by other companies.

Investors in the United States have access to several tax-advantaged saving plans, including 401(k)s, individual retirement accounts (IRAs), and Roth IRAs. The main difference between ♔a Roth ༒IRA and a traditional IRA is that the former is funded with 澳洲幸运5官方开奖结果体彩网:after-tax dollars. This means that 澳洲幸运5官方开奖结果体彩网:contributions to Roth IRAs are not tax deductible, as 澳洲幸运5官方开奖结果体彩网:they are with traditional IRAs. But unlike a traditional IRA, where withdrawn funds are taxed, a Roth IRA allows investors to withdraw funds tax-free.

Understanding Wealthfront

Wealthfront, which was founded in 2008, operates through three subsidiaries: Wealthfront Software LLC, Wealthfront Advisers LLC, and Wealthfront Brokerage LLC. The company has more than $50 billion in 澳洲幸运5官方开奖结果体彩网:assets under management (AUM).

Wealthfront operates as a 澳洲幸运5官方开奖结果体彩网:discount broker. The company’s software is focused on offering investment advice and customizes trades to each specific client, similar to a 澳洲幸运5官方开奖结果体彩网:full-service broker. But Wealthfront’s services are limited compared to full-service brokers. For example, it does not provide individual tax advice. And there are no human advisors with whom investors can discuss their 澳洲幸运5官方开奖结果体彩网:portfolios. Wealthfront’s services come at a low annual advisory fee of 0.25% and zero account or trading fees.

澳洲幸运5官方开奖结果体彩网:Wealthfront does not offer any proprietary funds, instead providing a broad range of ETFs issued by other companies from which investors can choose. Below, we look at one broad-based stock fund and one broad-based bond fund available through Wealthfront. Both funds are index funds and should thus perform similarly to other funds tracking the same index. The main reason for choosing each of these two funds is that they are the cheapest out of all of the stock and 澳洲幸运5官方开奖结果体彩网:bond funds offered by Wealthfront.

澳洲幸运5官方开奖结果体🌸彩网:Vanguard Total Stock Market ETF (VTI)

• 澳洲幸运5官方开奖结果体彩网:Expense Ratio: 0.03% (as of Apr. 26, 2024)
• Assets Under Management: $1.8 trillion (as of Dec. 31, 2024)
• One-Year Trailing Total Return: 23.75% (as of Dec. 31, 2024)
• 12-Month Trailing (TTM) Yield: 3.76% (as of Jan. 22, 2025)
• Inception Date: May 24, 2001

VTI is an ETF that aims to track the performance of the CRSP U.S. Total Market Index, an index composed of approximately 3,500 stocks across the 澳洲幸运5官方开奖结果体彩网:market capitalization spectrum and that represents nearly 100% of the U.S. investable equity market. The market-澳洲幸运5官方开奖结果体彩网:cap-weighted fund provides broad, diversified exposure to the U.S. equity mꩲarket.

VTI is managed by Gerard O’Reilly, Walter Nejman, and Michelle Louie. O’Reilly has advised the fund since 2001 and Nejma⛦n since 2016. Louie jointed the fund in 2023.

As of Dec. 31, 2024, the ETF had 3,609 holdings. They are composed as follows: 70% are 澳洲幸运5官方开奖结果体彩网:large cap stocks, 3.8% are somewhere between midcap and large cap, 13% are midcap, 5.7% are between small cap and midcap, and 7.5% are 澳洲幸运5官方开奖结果体彩网:small cap. The average market cap within the fund is $975.6 billion.

A broad-based equity fund like VTI carries a certain degree of risk, but it also provides investors with fairly strong growth opportunities. For many investors, this ETF may act as the foundation of a well-diversified investment portfolio. However, for those with a very low 澳洲幸运5官方开奖结果体彩网:risk tolerance or who are approaching retiremen𒊎t, a more income-oriented portfolio may be a better option.

澳洲幸运5官方开奖结果体彩网:Vanguard Total Bond Market ETF (BND𒀰)

• Expense Ratio: 0.03% (as of Apr. 26, 2024)
• Assets Under Management: $342.4 billion (as of Dec. 31, 2024)
• One-Year Trailing Total Return:: 0.14% (as of Jan. 22, 2025)
• 12-Month Trailing (TTM) Yield: 1.34% (as of Dec. 31, 2024)
• Inception Date: April 3, 2007

BND is a 澳洲幸运5官方开奖结果体彩网:passively managed ETF that seeks to track the performance of the Bloomberg U.S. Aggregate Float Adjusted Index, a market-weighted index used as a 澳洲幸运5官方开奖结果体彩网:benchmark representing the broad, 澳洲幸运5官方开奖结果体彩网:investment-grade U.S. bond market. 🦹The fund provides broad exposure to taxable U.S. dollar-denominated bonds that are of high credit quality.

BND’s sole portfolio manager is Joshua 🦩C. Barrickman, who has advised the f🌺und since 2013.

As of Dec. 31, 2024, the ETF had 11,277 holdings. Of these, 47.97% are U.S. Treasury or agency bonds, 19.84% are government 澳洲幸运5官方开奖结果体彩网:mortgage-backed securities (MBS), 14.87% are bonds issued by industrial firms, 8.70% are issued by financial companies, 3.34% are issued by foreign entities, 2.46% are issued by utilities, 1.64% are commercial MBS, 0.62% are 澳洲幸运5官方开奖结果体彩网:asset-backed securities (ABS), and 0.55% are other debt-based securities. All of the fund’s holdings are considered investment grade, with a 澳洲幸运5官方开奖结果体彩网:credit rating of BBB or higher.

A broad-based bond or fixed-income fund like BND is generally less risky than an equity fund. However, bond funds don’t provide the same growth potential, which means generally lower returns. They can be useful tools both for risk-averse investors and as part of a portfolio 澳洲幸运5官方开奖结果体彩网:diversification strategy. Consistent with 澳洲幸运5官方开奖结果体彩网:modern portfolio theory, risk-averse investors will find that investing in both a bond fund and a broad-based equity fund provides diversification. It is an approach that tends to maximize returns while minimizing risks.

Frequently Asked Questions (FAQs)

The Bottom Line

A Roth IRA offers investors certain tax advantages. Roth IRAs are unique in that they are funded with after-tax dollars and are not taxed when the funds are withdrawn at a later date. In short, 澳洲幸运5官方开奖结果体彩网:funds invested in a Roth IRA can grow tax-free.

After opening a Roth IRA, the types of investments chosen will depend on the individual investor’s risk tolerance and how much time and energy they have to research various investments. For investors with little time and energy, one option is to go with a few large and diversified funds, allocating part of their money♛ to a broad-based stock fund and another part to a broad-based bond fund. These large, diversified funds also may create a solid foundation for many investors who do have the extra time and energy to evaluate other, sometimes riskier, 澳洲幸运5官方开奖结果体彩网:investment options involving investments in individual companies or specific niches of the market.