Cancel Wealthfront in 2026: Stop Paying 0.25% to Hold Index Funds

Updated February 2026 • 8 min read

What Wealthfront Actually Costs

• Management fee: 0.25% of assets annually
• On $50K portfolio: $125/year
• On $100K portfolio: $250/year
• On $500K portfolio: $1,250/year
• On $1M portfolio: $2,500/year
• Plus underlying fund fees: 0.06-0.13% on top of the 0.25%

Over 20 years, 0.25% compounds to a significant drag. On a $500K portfolio growing at 7%, you'd pay roughly $40,000+ in fees over two decades.

How to Leave Wealthfront

Option 1: ACATS Transfer (Best Option)

Transfer your portfolio in-kind (without selling) to Fidelity, Schwab, or Vanguard:

1. Open an account at Fidelity, Schwab, or Vanguard (if you don't have one)
2. Initiate an ACATS transfer from the receiving broker — they do the work
3. Your ETFs transfer as-is, no selling or tax consequences
4. Takes 5-7 business days typically
5. The receiving broker often covers the transfer fee ($75) — Fidelity and Schwab reimburse this

Option 2: Sell and Withdraw

1. Sell all holdings in Wealthfront (triggers capital gains tax!)
2. Withdraw cash to your bank account
3. Reinvest at new broker
4. ⚠️ Only choose this if you have significant tax losses to harvest first

Option 3: Close Cash Account Only

If you only use Wealthfront's cash account (high-yield savings), simply transfer the balance to your bank and close. No fees, no tax implications.

The DIY Portfolio (What Wealthfront Does)

Wealthfront's "automated investing" is just buying index funds. Here's what their portfolio typically holds:

Tax-Loss Harvesting: The One Thing Wealthfront Does Well

Wealthfront's daily tax-loss harvesting IS genuinely valuable for taxable accounts with large gains. But:

• Fidelity and Schwab now offer automated tax-loss harvesting for free
• The benefit diminishes over time as your cost basis resets
• For accounts under $100K, the tax savings rarely exceed the 0.25% fee

When Wealthfront Is Worth Keeping

• You have a large taxable account ($250K+) actively benefiting from tax-loss harvesting
• You genuinely will not manage your own portfolio (and would otherwise not invest at all)
• You use the cash account for its high APY (but compare against other HYSA rates)