This project wasn't just about design — it was about creating a meaningful tool that drives results. From strategy to execution

This project wasn't just about design — it was about creating a meaningful tool that drives results. From strategy to execution

Wealthfront similarly uses ETF portfolios but includes more asset classes: U.S. stocks, foreign stocks, emerging markets, dividend stocks, real estate, natural resources, and bonds. This broader diversification aims to reduce volatility and capture different market segments. Their Risk Parity fund (for accounts over $100,000) adds alternative strategy exposure.

Betterment builds portfolios primarily using Vanguard ETFs, emphasizing low-cost index funds across asset classes. Their methodology focuses on Modern Portfolio Theory—diversification across stocks and bonds based on time horizon and risk tolerance. Automatic rebalancing maintains target allocations.

Wealthfront similarly uses ETF portfolios but includes more asset classes: U.S. stocks, foreign stocks, emerging markets, dividend stocks, real estate, natural resources, and bonds. This broader diversification aims to reduce volatility and capture different market segments. Their Risk Parity fund (for accounts over $100,000) adds alternative strategy exposure.

Both platforms offer tax-loss harvesting—automatically selling losing positions to realize losses offsetting capital gains. This strategy can save thousands annually in taxes for taxable accounts.

Betterment provides tax-loss harvesting on all taxable accounts regardless of balance. Their algorithm monitors daily for harvesting opportunities, typically generating $1,500-$3,000 in tax losses annually per $100,000 invested.

Wealthfront pioneered daily tax-loss harvesting for robo-advisors. Their system monitors accounts constantly, implementing harvesting strategies across all portfolio positions. Accounts over $100,000 qualify for Stock-Level Tax-Loss Harvesting+, buying individual stocks instead of ETFs in U.S. equity positions, generating 20-40% more harvestable losses.