Wealthfront, one of the largest independent robo-advisors, has announced an almost doubling of assets under management year to date to over $20 billion.
Helping to drive that growth: a high-interest FDIC-insured savings account offering, which was introduced in February and currently has an APY of 2.32%.
Wealthfront’s $20 billion AUM places it ahead of or in line with Betterment, another independent robo-advisor that also offers a high-interest savings account.
In June, Betterment CEO Jon Stein said the firm had $18 billion in assets, but that was before Betterment launched its Everday Savings account, which has an even higher APY than Wealthfront’s, currently 2.38%. Betterment has not responded to ThinkAdvisor’s request for its latest AUM figure.
(Related: Betterment Moves Into Banking)
Neither robo has updated the AUM on its Form ADV to reflect the latest publicly disclosed figures, and neither firm breaks down the assets held in savings versus investments.
Both robos, however, are “maintaining strong growth and are reaching the scale needed to offer rock-bottom pricing on investment management,” says David Goldstone, research analyst at Backend Benchmarking, which publishes The Robo Report. He added that Wealthfront’s AUM growth “is pretty significant as they have been trailing Betterment” for years.