Company: WLTH
Filing Date: 2025-07-28
Form Type: DRS/A
Source: 0001628279-25-000486
Chunk: 16

Company: WEALTHFRONT CORP
Filing Date: 2025-07-28
Form: DRS/A
Chunk 16
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” who want fully managed solutions and “do it yourselfers” who want more control over individual financial decisions.

• Cash Management

We sweep clients’ cash deposits across a large number of program banks, each of which is an FDIC-insured institution, which allows us to provide clients with an industry-leading APY 3 and the security of pass-through FDIC insurance. 4 By sweeping to multiple program banks, we enable our clients to access up to $8 million in FDIC insurance for individual accounts and $16 million for joint accounts. Through our banking partners, clients enjoy instant free money movement, and a full array of fee-free, no-strings-attached checking features—all wrapped up into one label-defying package we call a Cash Account.

• Investment Advisory

Our investment advisory products are primarily premised on the belief that it is extremely difficult to outperform the market. Therefore, we advocate a passive approach to long-term investing. We aim to excel at the three things clients can control to reliably improve their long-term, after-tax returns 5 : fees, taxes, and diversification. Clients benefit from our automated tax-loss harvesting strategies that are applied to our diversified portfolios of index-based ETFs, U.S. Direct Indexing, S&P 500 Direct, and Automated Bond Portfolios. Additionally, we offer clients the ability to invest in automated treasury bond ladders and discover and invest in individual stocks.

• Borrowing and Lending

We offer clients with a minimum account balance of $25,000 a simple, fast, and low cost way to borrow against up to 30% of the securities in their eligible accounts using a Portfolio Line of Credit (“PLOC”). For additional information, see the sections titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Quantitative and Qualitative Discussions of Market Risk,” “Business—Our Products” and Note 2. — Due from Clients of our consolidated financial statements included elsewhere in this prospectus.

We also enable clients to earn income by lending securities they own through our Fully Paid Securities Lending (“FPSL”) program. Clients can opt in or out of the FPSL program at any time. If a participating client opts in and meets our lending requirements, the client authorizes Wealthfront Advisers to lend the client’s fully paid securities to Wealthfront Brokerage, which lends such securities to unaffiliated third-party financial institutions. These loans are collateralized with cash received from the unaffiliated third-party borrowers, and clients receive 50% of the net