Wealthfront is primarily a robo-advisor investment platform, whereas Vanguard is a large brokerage firm<\/a>. Wealthfront is a newer company focused on technology, while Vanguard has been around a lot longer, specializing in creating low-cost index funds. Another major difference is that Vanguard provides access to human advisors while Wealthfront does not.<\/p>"
}
}
,
{
"@type": "Question",
"name": "What Is the Average Return on Wealthfront?",
"acceptedAnswer": {
"@type": "Answer",
"text": " Wealthfront’s Classic robo-advisor portfolio has had an average return of 8.63% per year since its inception in 2013.<\/span> However, your return will depend on how you design your investment portfolio. Wealthfront offers several different investment styles, such as Classic or ESG<\/a>. You can also add and subtract funds from the portfolio. The platform will show you the average past return of your investments.<\/p>"
}
}
,
{
"@type": "Question",
"name": "Can You Lose Money With Wealthfront?",
"acceptedAnswer": {
"@type": "Answer",
"text": " Yes, you can lose money with Wealthfront, as with any investment platform. When you sign up for an account, you pick your risk tolerance to set up your portfolio. Stock funds have a higher long-term expected return than bonds but are more likely to face short-term losses. If you are worried about losing money, you can set a low-risk tolerance. Wealthfront will give you a safer portfolio less likely to lose money.<\/p>"
}
}
,
{
"@type": "Question",
"name": "Is Vanguard Good for Passive Investing?",
"acceptedAnswer": {
"@type": "Answer",
"text": " Yes, Vanguard is good for passive investing, where you don’t trade often to keep fees low. Vanguard’s passive index funds charge some of the lowest expense ratios in the country. Vanguard’s founder, John Bogle<\/a>, is famous for being one of the first promoters of low-cost passive investing using index funds<\/a> as an alternative to higher-cost funds that try to outperform the market.<\/p>"
}
}
]
} ] }
]