Wealthfront Shutters Fund That Brought Dalio Playbook to Masses

Wealthfront Inc. is closing its risk parity fund after years of poor performance, marking the end of an uphill battle to offer the sophisticated strategy to the masses.

The digital-wealth management firm said in a Monday filing that the Wealthfront Risk Parity Fund will be liquidated and dissolved on or about January 3. The product, which has almost $1.3 billion in assets, will no longer pursue its stated investment objective and will begin liquidating its portfolio “as soon as is reasonable,” the filing said.

The announcement marks the final chapter for the mutual fund, which has been a magnet for ...