Digital adviser Wealthfront has created its own mutual fund despite having previously criticised its competitors for introducing proprietary products. The fund is intended to help Wealthfront establish a risk-parity strategy for taxable accounts with a minimum of $100,000. A spokesman said: “Wealthfront’s investment products are designed and developed by independent advisers who have been trained in the best practices of financial advising. However, the move has met criticism, with concerns over whether the fund creates a conflict of interest for Wealthfront. Micah Hauptman, financial services counsel at the Consumer Federation of America, said: "I'm pretty surprised and frankly baffled by what they are doing."
Digital adviser Wealthfront has created its own mutual fund despite having previously criticised its competitors for introducing proprietary products. The fund is intended to help Wealthfront establish a risk-parity strategy for taxable accounts with a minimum of $100,000. The firm said the fund would increase customers' average annual expense ratio by eight basis points. However, the move has met criticism, with concerns over whether the fund creates a conflict of interest for Wealthfront. Micah Hauptman, financial services counsel at the Consumer Federation of America, said: "I'm pretty surprised and frankly baffled by what they are doing."