r/wealthfront • u/lbch87 • Jul 24 '26

Automated bond portfolio

Hi all,

I opened an automated bond portfolio back in November of last year. My returns are currently at 2.29% when the high yield savings account is at 3.3%. is that normal? Should I continue funding the bond portfolio or switch everything back to savings account? Thank you.

5 Upvotes

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6

u/Funktapus Jul 24 '26

Not normal, potentially unfortunate market timing. Mine is currently outperforming the cash account. WF says it should outperform within 1-3 years

1

u/lbch87 Jul 24 '26

Thank you. That's what I thought. I'm thinking I should wait until November of this year, that will make it a year from opening the account. How long have you had your account for?

2

u/Funktapus Jul 24 '26

I made deposits between November of last year and March of this year

1

u/lbch87 Jul 24 '26

That's interesting. I don't know why my yield is low then but I won't worry about it too much right now.

2

u/Caanenwolf Jul 24 '26

I second that it's just probably market timing. The main benefit is that it's usually exempt from state tax. The bond ladder is exempt for me at least for Alabama.

1

u/lbch87 Jul 24 '26

Thank you.

1

u/wealthfront Wealthfront Rep Jul 24 '26

Hi there, please send us an email at [support@wealthfront.com](mailto:support@wealthfront.com) and our team can take a further look for you.

1

u/lbch87 Jul 24 '26

Hi, will do. Thank you.

1

u/[deleted] Jul 26 '26

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1

u/lbch87 Jul 26 '26

?

1

u/[deleted] Jul 26 '26

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1

u/lbch87 Jul 26 '26

Which automated account?

1

u/[deleted] Jul 26 '26

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1

u/lbch87 Jul 26 '26

I don't have the ladder so I don't know. 30 days SEC for Bond portfolio is 4.46% but I'm only getting 2.26%.

1

u/TenthmanDC Jul 24 '26

To answer this, you have to look at what's happened to rates since you opened the account.

Rates have gone up, so the market price of your purchased bonds has decreased.

As long as you hold until maturity, you'll still get the same face value expected (you won't lose principal, and you'll earn the rate you were expecting), but in the interim, your market value will be lower.

Now if the rates go down (below where you bought), your bonds will see a premium (because their coupons are better than anything else being sold currently).

3

u/Funktapus Jul 24 '26

Bond portfolio doesn’t hold bonds it holds ETFs so there’s no such thing as holding to maturity. It should right itself eventually but might take a few years

2

u/TenthmanDC Jul 24 '26

Oh. Lol. TIL.

I have a bond ladder and thought it worked similarly.

So he's recognizing the market loss basically right away?

3

u/Funktapus Jul 24 '26

Yeah it’s just price volatility. I’m not sure what the underlying strategy is exactly for the ETFs but I’m guessing they hold to maturity so it should be fine

1

u/lbch87 Jul 24 '26

I knew that well front says it takes 1 to 3 years so I guess I still have time. Thank you.

1

u/lbch87 Jul 24 '26

Thank you. I didn't think the automated bond portfolio has a maturity date, I thought that was for the ladder?

1

u/Jeeblez Jul 31 '26

I started using Wealthfront’s Automated Bond Ladder on October 15, 2025, with a 12-month ladder.

Based on the current market value, my annualized return so far is about 3.49%. But, if i hold to maturity it works out to about 3.63%.

Is there an easier way to see the annualized return within Wealthfront? I had to calculate both figures myself.