Build Wealthfront’s Portfolios With ETFs

Learn how to build Robo Advisor Wealthfront's portfolios with ETFs. How do they compare against other portfolios?
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What are the Wealthfront’s Portfolios?

Robo Advisor Wealthfront portfolios can be built with 7 ETFs. They are exposed to between 40% and 100% equities. They have low-risk portfolios and high-risk portfolios.

For the past 10 years, the Robo Advisor Wealthfront 100 has returned 9.41 with a standard deviation of 17.12. The dividend yield is 2.28. The 30-year return is 9.53%. Year to date the Robo Advisor Wealthfront 100 portfolio has returned 12.32%%.

What is the historical return of the Wealthfront portfolios?

Below you can see the historical return of Wealthfront’s portfolios.

Data was last updated on October 1, 2021 at 04:21 a.m. ET

NameAsset class countYear to dateReturn in 202010 year returnCAGR since 1989 (%)Risk levelExpense ratio
Robo Advisor Wealthfront 10079.16%10.897.559.7730.08%
Robo Advisor Wealthfront 80710.63%9.648.579.4630.07%
Robo Advisor Wealthfront 6078.66%9.788.39.1630.08%
Robo Advisor Wealthfront 4076.69%

How does Wealthfront’s portfolios compare to the best portfolios?

Below you can see the returns of the best portfolios that we have benchmarked.

NameSee PortfolioYear to dateReturn in 202010 year returnCAGR since 1989 (%)Draw Down
Premium Portfolio15.92%18.2913.8410.77-37.63%
Premium Portfolio8.30%18.118.6311.14-44.87%
Premium Portfolio13.48%19.712.8410.49-32.77%
Premium Portfolio20.78%3.198.5210.59-36.46%
Premium Portfolio20.17%3.668.6210.48-36.35%
Premium Portfolio15.18%21.0313.7810.83-37.00%
Premium Portfolio19.24%8.711.5610.65-35.26%
Premium Portfolio15.41%7.488.3910.64-37.91%
Premium Portfolio16.16%5.3610.8811.23-35.43%
Premium Portfolio20.81%3.4210.2110.47-40.85%

What is Wealthfront?

The robo advisor firm came late to the robo advisor party but has enjoyed an immense amount of success.

One of the giants of the investment world, Burton Malkiel, author of A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing, is the Chief Investment Officer at Wealthfront.

Charles Ellis, another investing giant, and author of Winning the Loser’s Game, Seventh Edition: Timeless Strategies for Successful Investing is on the advisory board.

As of 2019 Wealthfront has 20 billion dollars under management. Their biggest competitor in the robo advisor space is Betterment. You can view our breakdown of the Betterment portfolios in the article Robo Advisor Betterment Portfolios Are Robots Better?

To see a comparison of robo advisor portfolios see our article Robo Advisor Performance. This is the article where we compare the performance of various robo advisors.

Description of Wealthfront portfolios

There seems to be a trend in the robo advisor portfolios. They are all highly diversified. They use asset classes not usually seen as much in other portfolios.

The Wealthfront portfolios include the use of emerging market bonds. They also use real estate, REITs, as a distinct asset class. Betterment, on the other hand, does not allocate to REITs specifically.

Wealthfront also makes heavy use of corporate bonds – a favorite of Burton Malkiel. See Burton Malkiel Portfolio: No Random Returns Here.

This creates a setup for potential outperformance in that they can rebalance their way to higher returns.

What is the asset allocation of Wealthfront’s portfolios?

Below you can see how you build Wealthfront’s portfolios with ETFs.

Robo advisor Wealthfront 100                   

This portfolio is part of Portfolio Einstein Gold, Premium Portfolios. 

Robo advisor Wealthfront 80                     

  • 22.00%  US Total Stock Market (VTI)
  • 15.00%  US Large Cap Value (VTV)
  • 15.00%  REITs (VNQ)
  • 19.00%  International Developed Blend (VEA)
  • 16.00%  Emerging Markets (VWO)
  • 6.00%    Corporate Bonds (LQD)
  • 7.00%    Emerging Market Bonds (EMB / VWOB)

Robo advisor Wealthfront 60                     

  • 19.00%  US Total Stock Market (VTI)
  • 15.00%  US Large Cap Value  (VTV)
  • 11.00%  REITs (VNQ)
  • 16.00%  International Developed Blend (VEA)
  • 12.00%  Emerging Markets (VWO)
  • 19.00%  Corporate Bonds (LQD)
  • 8.00%    Emerging Market Bonds (EMB / VWOB)

Robo advisor Wealthfront 40                     

  • 18.00%  US Total Stock Market (VTI)
  • 15.00%  US Large Cap Value (VTV)
  • 6.00%    REITs (VNQ)
  • 12.00%  International Developed Blend (VEA)
  • 8.00%    Emerging Markets (VWO)
  • 31.00%  Corporate Bonds (LQD)
  • 10.00%  Emerging Market Bonds (EMB / VWOB)

Here is how we select the right ETFs

There are a lot of ETFs! It is laborious work to sift through hundreds and hundreds of ETFs just to find the right one, but it is worth it!

Finding the right and BEST ETF could earn you a lot more money than number two.

We have carefully selected an ETF for each asset class that the portfolios on use. If you want to read more about our selection process and see what we consider the best ETFs please visit our article What Is The Best ETF?

If you are a European investor you need to buy European ETFs. We have listed 47 of the best ETFs in our article What Are The Best ETFs For European Investors? (Here Is 47).

As of 2021 we also track socially responsible investing ESG portfolios. Socially responsible investing (ESG) portfolios prioritize investing that puts an emphasis on environmental, social, and corporate governance issues.

You can find the socially responsible investing ESG ETFs in the same article.

Resources for Wealthfront portfolios

Wealthfront has a very good learning center with some informative videos. Many of them starring Burton Malkiel!

The Wealthfront website

Suggestions for your next steps

Finding the correct portfolio is hard. Maintaining your portfolio is also daunting. If you are still in doubt about which portfolio to choose, we suggest you read our article How To Invest Money: 5 Simple Steps That Work For Anyone

If you have already committed to a portfolio – good for you! If you need help maintaining the portfolio you will find our rebalance worksheet useful. Rebalancing your portfolio lowers your risk and may provide higher returns in the long run. It is completely FREE.

You can find the rebalance worksheet in our article Here Is The Most Easy To Use Portfolio Rebalance Tool.

Rebalancing lowers your portfolio risk and may increase your returns.

If you want access to our high-performing portfolios then you need to take a look at the premium portfolios. This is a paid product that gives you the 59 best-performing portfolios since 1989. The portfolios represent a great opportunity for you to have a shot at increasing the returns of your portfolio.

Portfolioeinstein Premium Portfolios
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