FormulaFolios is a company.
Key people at FormulaFolios.
FormulaFolios was founded by Jason Wenk (Founder / CEO).
Key people at FormulaFolios.
FormulaFolios is a Registered Investment Adviser (RIA) founded in 2011, specializing in algorithmic money management to remove emotion from investing and empower financial advisors, particularly those serving retirement clients.[1][2][4] Its investment philosophy centers on data-driven algorithms, model portfolios, and open-architecture platforms emphasizing income strategies for growth and retirement, with products like the FormulaFolios US Equity Fund, Hedge Growth ETF, Income ETF, Smart Growth ETF, and Tactical Growth ETF.[2][4] The firm targeted no specific sectors beyond broad equity, fixed income, and treasury strategies via ETFs and funds, achieving explosive organic growth to nearly $4 billion in assets under management (AUM) in six years, ranking as Inc. magazine's fastest-growing private company (up to #10 in 2017).[1][2] In 2020, it merged with Brookstone Capital Management to form a $6.5 billion RIA, retaining the FormulaFolios brand for asset management while enhancing advisor tools for planning, marketing, and training.[2][6][7]
This positioned FormulaFolios as a key supporter of independent advisors in the wealth management ecosystem, though its independent operations appear to have evolved post-merger, with founder Jason Wenk later launching Altruist, a modern custodian.[1][5]
FormulaFolios emerged from founder Jason Wenk's two decades in financial services, starting at age 20 as Morgan Stanley's youngest global professional employee in investment research and asset management systems.[1] After building Retirement Wealth—a web-based advisory software firm—Wenk sold it in 2011 and launched FormulaFolios to scale those tools industry-wide as an asset management platform for independent advisors.[1][3] Registered with the SEC that September, it quickly grew via algorithmic portfolios that customized plans to client risk tolerance and objectives.[1][4]
Pivotal growth came organically, hitting $4 billion AUM in six years as the fastest-growing RIA ever, fueled by advisor demand for emotion-free strategies amid retirement planning needs.[1][2] By 2020, a merger with Brookstone created a powerhouse RIA, blending FormulaFolios' algorithms with Brookstone's tech and support, while later partnerships like AmeriLife's integrated it further into retirement solutions.[2][8] Wenk's journey continued to Altruist, addressing custodial "gatekeepers" limiting advisor scalability.[3][5]
FormulaFolios stood out in wealth management through:
These elements created a tech-forward RIA prioritizing accessibility and efficiency over traditional discretion.
FormulaFolios rode the rise of fintech in wealth management, democratizing advisor tools amid legacy custodians like Fidelity and Schwab constraining independent RIAs.[3] Launched in 2011 during post-financial crisis demand for transparent, algorithmic strategies, it capitalized on retirement demographics and RIA growth—organic scaling highlighted tech's power to disrupt emotion-driven investing.[1][2] Market forces like advisor independence, low-fee ETF proliferation, and digital marketing favored its model, influencing the ecosystem by proving RIAs could hit billion-scale AUM via software-first approaches.[1][3]
The 2020 Brookstone merger amplified this, forming a top RIA with end-to-end solutions, while exposing limitations that spurred innovations like Wenk's Altruist to rebuild the "operating system" of advice.[3][5][7] It underscored fintech's shift from advisory platforms to integrated custodians, paving the way for scalable, fiduciary-focused services.
Post-2020 merger, FormulaFolios' brand persists in asset management within Brookstone's expanded ecosystem, likely benefiting from ongoing RIA consolidation and retirement tailwinds.[2][8] Next steps could involve deeper AI enhancements to algorithms, broader ETF launches, and partnerships amplifying advisor tech amid rising demand for personalized income strategies.[4] Trends like regulatory pushes for fiduciary standards, zero-commission trading, and embedded finance will shape its path, potentially evolving influence toward full-stack platforms challenging incumbents.[3][5]
Tying back: From a $0-to-$4B phenom born of one founder's vision, FormulaFolios redefined algorithmic advice, fueling the advisor revolution still accelerating today.[1]
FormulaFolios was founded by Jason Wenk (Founder / CEO).
