Wealthfront ↔ U.S. stocks

Relations (1)

cross_type 2.32 — strongly supporting 4 facts

Wealthfront includes U.S. stocks as a core asset class within its investment portfolios [1], where they are subject to specific allocation constraints [2] and are utilized as a higher-risk asset to adjust portfolio risk levels {fact:3, fact:4}.

Facts (4)

Sources

Wealthfront Classic Portfolio Investment Methodology White Paper research.wealthfront.com Wealthfront 4 facts

procedureWealthfront enforces minimum and maximum allocation constraints for each asset class, setting minimums at zero to ensure portfolios are long-only and maximums at 35% for most asset classes to ensure diversification, with the exception of US stocks which have a maximum allocation of 45%.

claimIn Wealthfront's retirement portfolios, increasing risk levels leads to decreased allocation to conservative assets (US bonds, TIPS, and corporate bonds) and increased allocation to aggressive assets (US stocks, foreign developed stocks, emerging market stocks, and real estate).

claimAs risk levels increase, Wealthfront's investment portfolios decrease allocations to lower-risk/lower-return assets, such as TIPS and municipal bonds, and increase allocations to higher-risk/higher-return assets, such as US stocks, foreign developed stocks, and emerging market stocks.

claimWealthfront portfolios contain between five and seven asset classes, including US stocks, foreign developed stocks, emerging market stocks, dividend growth stocks, US bonds, US corporate bonds, municipal bonds, and TIPS.