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Wealthfront Cuts Fees on Risk Parity Fund After User Backlash

  • CEO says he wishes he would have had lower fees from the start
  • New offering comes as firms increasingly try to differentiate

Just two months since announcing its risk parity offering, digital wealth management startup Wealthfront Inc. is cutting the fees after investor backlash.

The Redwood City, California-based firm said this week that it will be cutting the expense ratio on its new mutual fund offering in half, to 0.25 percent from 0.50 percent. When the product was announced in February, a number of customers took to social media to voice questions and concerns about the offering.