Wealthfront Pivots

Wealthfront (formerly known as Kaching) looks like they have pivoted once again. According to a recent SEC filing and information on their website, they will be dis-continuing their model manager program— the service that allowed clients to invest in¬†third¬†party SMA providers— for consumers, and instead begin to offer asset management based on Modern Portfolio Theory. They will be charging a 0% management fee for assets from $5,000-$25,000 and 0.25% management fee for assets of $25,000 and up. The portfolios will¬†consist¬†of ETFs exclusively. This fee is not wrapped, meaning trading and custody fees still apply. The service will be similar to those offered by Hedgeable’s Free Program and¬†Betterment.

It remains to be seen whether they will continue to offer the backend reporting for RIAs, a service which they hoped could attract high quality money managers and in turn consumers for their marketplace.