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Wealthfront Launches 'Freemium' Financial Planning Offering: Portfolio Products

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Wealthfront is opening up its current financial planning service to anyone for free.

By year end, anyone will be able to download the Wealthfront app, connect all of their financial accounts, build a personalized financial plan and receive recommendations powered by Wealthfront’s automated financial advice engine, Path.

Using a combination of a client’s financial information and third-party data, Path uses AI techniques like machine learning to provide answers to more than 10,000 financial questions.

According to Wealthfront, financial planning and advice does not need to be delivered through a person.

“By keeping our focus on building technology-based solutions we can deliver our financial planning free, to everyone,” Wealthfront said in a statement.

The “freemium” offering is currently in beta and will be available by the end of this year.

State Street Launches 3 ‘New Economy’ SPDR ETFs

State Street Global Advisors announced the expansion of its New Economy sector ETF lineup with the launch of the SPDR Kensho New Economies Composite ETF (KOMP), SPDR Kensho Clean Power ETF (XKCP) and SPDR Kensho Final Frontiers ETF (XKFF).

The new ETFs, which track proprietary indexes developed by machine intelligence company Kensho Technologies, are designed to provide investors with cost-efficient, diversified access to the potential growth of innovative companies considered to be driving what State Street calls the Fourth Industrial Revolution.

KOMP seeks to track an index that combines 16 qualifying New Economy industries, including 3D printing and genetic engineering.

XKFF seeks to provide exposure to the commercialization of space and deep sea travel and exploration, while XKCP seeks to provide exposure to the clean power industry both in terms of generation and the underlying technology driving it.

“Today’s technological innovations are not only changing the way we live and work, but are also creating actionable growth opportunities for investors, much like how the rise of personal computers spawned a new era of disruption,” said Noel Archard, global head of SPDR Product at State Street Global Advisors, in a statement. “With the addition of KOMP, XKCP and XKFF to SPDR’s suite of sector and industry ETFs, investors can access the potential for dynamic growth and economic disruption across infrastructure, transportation, cybersecurity, defense, energy, space exploration and more, all in a single trade.”

Kensho Technologies leverages alternative data and artificial intelligence to identify and analyze large amounts of data, from companies that are developing the products and services driving the new economy, including those in the entire ecosystem, such as suppliers and service providers, in addition to the pure play companies.

State Street Global Advisors first worked with Kensho Technologies in December 2017, when it launched three ETFs tracking indexes developed by the firm: the SPDR Kensho Intelligent Structures ETF (XKII), SPDR Kensho Smart Mobility ETF (XKST) and SPDR Kensho Future Security ETF (XKFS). 

Oranj, Vestmark Partner to Expand Access to Third-Party Investment Models

Vestmark announced a partnership with financial technology firm Oranj.

Vestmark Advisory Solutions will give Oranj advisors access to the more than 500 third-party strategies as models in the Vestmark Manager Marketplace. Vestmark Advisory Solutions also will perform the trading and related services required to implement the models selected by Oranj advisors for their clients, which can include both ETF strategist models and traditional equity strategies.

This partnership makes it possible for Oranj to expand the investment options available to advisors to serve their clients’ needs. It also will enable advisors to allocate their clients’ assets to one or multiple third-party strategies in a single account, with a process as simple as setting up one dual-contract separately managed account.

Advisors signed up to use Oranj can begin utilizing the expanded set of Vestmark strategies as soon as they become available this year.

Redtail Technology Adds Artificial Intelligence to Advisor CRM

Redtail Technology announced the rollout of advanced artificial intelligence capabilities that will enable advisory firms of all sizes to access valuable data and trends about current and prospective clients directly within its customer relationship management system.

Redtail’s machine-learning features will make natural language processing accessible and affordable for the advisory community.

Using the concept of “transfer learning,” Redtail can utilize smaller amounts of data to begin the learning process. The system then analyzes emails, notes and text messages to predict and estimate client needs, create better outcomes, and discover important connections that enable all parties to make better financial decisions.

Advisors who use Redtail can integrate machine-learning capabilities into their workflows by automating actions within their CRM. They have the option to internally send emails or text messages with links to client sentiment data, which in turn decreases the response time to address client concerns.

The data can also be used to influence recommendations or make product suggestions, all in a compliant manner.

Advyzon Announces Participation in Schwab OpenView Gateway

Advyzon, an all-in-one, cloud-based financial advisor technology platform, announced it will integrate with Schwab OpenView Gateway, the Schwab Advisor Services integration platform, which supports more than 7,500 independent investment advisors.

The Advyzon integration with OpenView Gateway will provide advisors who custody assets with Schwab seamless data flow between Schwab and Advyzon.

Advisors will be able to access custody data from Schwab Advisor Center — including their balances, alerts, reports, transactions, and profile details — in real-time within the Advyzon platform, as well as send information such as fee billing calculations, back to Schwab.

Advyzon’s end-to-end platform offers advisors CRM, client reporting, billing, document management, a client portal and more. The platform also ensures client transactional data is imported, reconciled daily and thoroughly researched to ensure accuracy.

The integration will be available for all Advyzon clients and RIAs who custody with Schwab.

Cresset Capital Management and Diversified Real Estate Capital Launch Qualified Opportunity Zone Fund

Cresset Capital Management has partnered with Diversified Real Estate Capital to launch a new fund that will invest and create impact in Qualified Opportunity Zones (QOZs).

The federal tax overhaul enacted in 2017 established the QOZ provisions to stimulate economic development. These provisions provide potentially significant tax benefits to investors who re-invest capital gains into long-term investments in QOZs.

The Cresset-Diversified QOZ Fund will pursue a broad portfolio of investments, from real estate development and redevelopment to private company investments in industries, which include data centers, manufacturing, distribution and energy.

— Read last week’s portfolio product roundup here: VanEck Launches ETF Focused on Video Gaming, Esports: Portfolio Products


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