Robinhood offers index funds through two routes: fractional shares of individual index ETFs, and funds within IRAs

Robinhood does not offer mutual funds at all — not index mutual funds, not actively managed ones. What you can buy on Robinhood are exchange-traded funds (ETFs) that track indexes, and you can hold them in a regular brokerage account or in an IRA. You can also buy fractional shares, meaning you do not need $300 to own a $300 fund; you can invest $50 and own a piece of it.

The index ETFs available depend on what the fund company has created and what Robinhood has chosen to list. Robinhood carries the major ones — Vanguard, iShares, and Schwab all have broad market index ETFs on the platform — but Robinhood does not publish a complete list of every fund it supports. You search for a specific fund ticker (like VOO or VTI) to see if it is available.

If you want index funds inside a retirement account, Robinhood offers IRAs — both traditional and Roth — and you can buy the same index ETFs inside them. The rules about contribution limits and tax treatment are the same as any other IRA; the difference is that Robinhood is the custodian holding the account.

Key Takeaways

  • Robinhood sells index ETFs, not index mutual funds, and you can buy fractional shares starting with any dollar amount.
  • Major index ETF providers like Vanguard, iShares, and Schwab are available on Robinhood, but you must search for the specific fund ticker to confirm it is listed.
  • You can hold index ETFs in a regular taxable brokerage account or inside a Robinhood IRA for tax-advantaged retirement investing.
  • Robinhood charges no commission on stock or ETF trades, but the ETF itself has an expense ratio set by the fund company, not by Robinhood.

How index ETFs on Robinhood differ from mutual funds

An ETF trades like a stock — it has a ticker symbol, a price that changes throughout the trading day, and you buy and sell it through a brokerage. A mutual fund is priced once per day after the market closes, and you buy it directly from the fund company or through a broker. On Robinhood, you cannot buy mutual funds at all, only ETFs.

For index investing, this matters less than it sounds. An index ETF and an index mutual fund tracking the same index will perform nearly identically over time. The expense ratio — the annual fee the fund company charges — is usually similar or identical. The main practical difference is that an ETF price fluctuates during the day, so you see the value of your holding change in real time, whereas a mutual fund price is fixed at the end of each day.

Robinhood's fractional share feature means you do not need to wait until you have enough cash for a full share. If a fund costs $150 per share and you have $50, you can buy one-third of a share. This makes it easier to start investing with small amounts or to keep your portfolio balanced when you add new money.

Which index ETFs are actually available on Robinhood

Robinhood does not maintain a published list of every ETF it supports, so the only way to know for certain is to search for the fund's ticker in the Robinhood app or website. However, the major index ETF providers — Vanguard, iShares (BlackRock), and Schwab — all have funds on the platform.

Common broad-market index ETFs that are typically available include VOO and VTI (Vanguard), IVV and ITOT (iShares), and SWTSX (Schwab). Bond index ETFs like BND (Vanguard) and AGG (iShares) are also usually there. International index ETFs exist on the platform as well. The safest approach is to decide which fund you want to own, then search for its ticker on Robinhood before opening an account.

Robinhood occasionally removes or adds ETFs, though this is rare for the major index funds. If you own a fund and Robinhood removes it from the platform, you keep the shares you own — you just cannot buy more. You can sell them or transfer them to another brokerage.

Expense ratios and the true cost of index ETFs on Robinhood

Robinhood charges zero commission on ETF trades, meaning you pay nothing to buy or sell. However, the ETF itself has an expense ratio — an annual fee charged by the fund company. This fee is separate from Robinhood and applies whether you hold the fund on Robinhood, Vanguard, Fidelity, or anywhere else.

Index ETFs typically have very low expense ratios, often between 0.03% and 0.20% per year. This means if you own $10,000 in a fund with a 0.10% expense ratio, you pay $10 per year. The fee is deducted automatically from the fund's value, so you do not see a bill — it just slightly reduces your returns.

When comparing index ETFs, the expense ratio is the main cost to watch. Two funds tracking the same index may have different ratios. Vanguard's VOO charges 0.03%, while iShares' IVV charges 0.04%. Over decades, that tiny difference compounds. Robinhood's zero-commission structure means the expense ratio is the only ongoing cost, which is why index investing through Robinhood can be inexpensive.

Using index ETFs in a Robinhood IRA

Robinhood offers both traditional IRAs and Roth IRAs. Inside either one, you can buy the same index ETFs available in a regular account. The tax treatment and contribution limits are determined by IRA rules, not by Robinhood — you can contribute up to $7,000 per year (or $8,000 if you are 50 or older), and the money grows tax-deferred or tax-free depending on the IRA type.

A Robinhood IRA works the same way as an IRA at any other brokerage: you fund it, you choose what to invest in, and Robinhood holds the account as custodian. You can roll over an existing IRA from another brokerage into a Robinhood IRA if you want to consolidate. When you reach retirement age, you follow standard IRA withdrawal rules.

The advantage of using Robinhood for an IRA is simplicity and low cost — no account fees, no commission on trades, and access to fractional shares. The disadvantage is that Robinhood is a newer brokerage and does not offer some of the services older firms do, such as automatic rebalancing or dividend reinvestment options. For a straightforward index fund strategy, this usually does not matter.

Comparing Robinhood to other brokerages for index fund investing

Robinhood is not the only brokerage offering index ETFs with no commission. Fidelity, Vanguard, Charles Schwab, and E*TRADE all offer commission-free ETF trading and carry the major index funds. The real differences are in features and account types.

Vanguard is owned by its investors and tends to have the lowest expense ratios on its own funds. Fidelity offers more educational resources and a wider range of account types. Schwab has strong customer service. Robinhood's main appeal is simplicity and fractional shares, though fractional shares are now available at most major brokerages too.

If you are just starting out and want to buy index ETFs with small amounts of money, Robinhood works fine. If you already have accounts elsewhere or want more features, moving to a larger brokerage is also reasonable. The difference in cost between them, for index fund investing, is usually small.

Frequently Asked Questions

Can I set up automatic monthly investments in an index ETF on Robinhood?

Robinhood does not offer automatic recurring investments. You have to manually buy the ETF each time you want to invest. Some other brokerages, like Fidelity and Vanguard, do offer automatic monthly purchases, which can be helpful for staying disciplined.

What happens to my index ETFs if Robinhood goes out of business?

Your ETFs are held in your name at a custodian, not owned by Robinhood. If Robinhood failed, the Securities Investor Protection Corporation (SIPC) would transfer your account to another brokerage. Your shares would move with you. This protection covers up to $500,000 per account.

Can I buy index mutual funds on Robinhood instead of ETFs?

No. Robinhood only offers ETFs, not mutual funds. If you specifically want a mutual fund version of an index, you would need to use a different brokerage like Vanguard or Fidelity.

Do I pay taxes on index ETF gains while holding them on Robinhood?

In a regular taxable account, yes — you owe capital gains tax when you sell at a profit, and you owe tax on any dividends the fund pays. In an IRA, no — gains and dividends grow tax-deferred (traditional IRA) or tax-free (Roth IRA) until you withdraw.

Is there a minimum amount I need to invest to start with Robinhood?

Robinhood has no account minimum and no monthly fees. You can open an account and invest $1 if you want, thanks to fractional shares. Some other brokerages require a minimum deposit to open an account.