Andy Rachleff

We manage a diversified portfolio of low-cost index funds on behalf of our clients.

We do this at extremely low minimums.

The minimum is only $500 to open an account.

Extremely low fees.

We charge less than a quarter of a percent annually as an advisory fee.

And we do it in an incredibly tax-efficient manner.

And we do it in a set it and forget it style.

It's all managed electronically.

Well, if you like Vanguard, you're going to love Wealthfront.

And the reason is that we're able to do things in software with regard to minimizing your taxes that Vanguard cannot.

And the benefit of that tax minimization is worth at least six to eight times what we charge in fees.

So I know that people are sensitive to fees.

They should be.

You know, you can't control the market, which is why you should invest in index funds like Vanguard's.

We use Vanguard index funds in our service because we can invest.

But the way that our chief investment officer, Bert Malkiel, who basically invented the index fund, likes to say you can't control the market.

So focus on the three things you can control, diversification, minimizing fees and minimizing taxes.

Unfortunately, Vanguard can't minimize taxes, and we can do that through things like tax loss harvesting and direct indexing, which, as I said, can add anywhere between 1.5% and 2% to your annual after-tax return.

We think that's a pretty good tradeoff for a fee of less than a quarter of a percent.

Yeah, and we do it daily.