Yes, you can buy ETFs on Robinhood with the same process you use for stocks
Robinhood lets you buy and sell exchange-traded funds (ETFs) through its app or web platform. You search for the ETF by its ticker symbol, place an order for shares, and own them the same way you own individual stocks. There are no commission fees on ETF trades, just like stock trades on Robinhood.
The main limitation is that Robinhood does not offer fractional shares for ETFs the way it does for stocks. You must buy whole shares only. If an ETF costs $150 per share and you have $200 to invest, you can buy one share and have $50 left over — you cannot buy 1.33 shares.
Key Takeaways
- ETFs trade on Robinhood with zero commission, the same as stocks, and you search for them by ticker symbol to place an order.
- You can only buy whole shares of ETFs on Robinhood, not fractional shares, so the price per share matters when you have limited cash.
- ETFs settle in two business days after you place the order, meaning you cannot sell them or use the proceeds until settlement is complete.
- Dividend-paying ETFs will deposit cash into your Robinhood account, which you can reinvest or withdraw.
How to find and buy an ETF on Robinhood
Open the Robinhood app or go to robinhood.com and tap the search icon. Type the ETF's ticker symbol — for example, VOO for the Vanguard S&P 500 ETF or QQQ for the Invesco QQQ Trust. The ETF will appear in the results with its current price, daily change, and a chart.
Tap or click on the ETF to open its detail page. You will see the price per share, the fund's holdings, expense ratio, and dividend history. Tap the "Buy" button, enter the number of whole shares you want, review the order, and confirm. The order executes immediately during market hours (9:30 a.m. to 4 p.m. Eastern on weekdays) or queues for the next market open if you order after hours.
Settlement and when you can sell
After you buy an ETF on Robinhood, the trade settles in two business days. During this time, you own the shares, but you cannot sell them or use the proceeds from a sale until settlement is complete. If you buy on a Monday, settlement happens on Wednesday. If you buy on a Friday, settlement happens on Tuesday (skipping the weekend).
This two-day window is standard across all brokers and is set by the financial system, not by Robinhood. Plan your cash accordingly if you think you might need to sell quickly.
Dividends and reinvestment
Many ETFs pay dividends quarterly or monthly. When an ETF you own pays a dividend, Robinhood deposits the cash into your account automatically. You can then reinvest that cash by buying more shares, or you can leave it sitting in your account to use for other trades or to withdraw.
Robinhood does not offer automatic dividend reinvestment (DRIP) for ETFs the way some other brokers do. You have to manually buy more shares if you want to reinvest. This is a minor inconvenience but gives you control over when and how you reinvest.
ETF types available on Robinhood
Robinhood carries thousands of ETFs, including broad index funds (like VOO or VTI), sector-specific funds (like XLK for technology), bond ETFs, international ETFs, and specialty funds. You can search by name or ticker to find what you need.
The platform does not restrict which ETFs you can buy based on account type. Whether you have a standard taxable account, an IRA, or a Roth IRA on Robinhood, you can buy the same ETFs. Tax treatment differs by account type, but Robinhood does not block any ETF from any account.
Costs and fees
Robinhood charges no commission on ETF trades, no account maintenance fees, and no inactivity fees. The only cost you pay is the ETF's own expense ratio — the annual fee the fund charges to cover its operating costs. This is built into the fund's price and is the same whether you buy on Robinhood or any other broker.
If you buy or sell after market hours, your order will execute at the next market open at the market price at that time, not at the price you saw when you placed the order. This can work in your favor or against you depending on overnight news or market movement.
Robinhood Gold and margin accounts
If you have a Robinhood Gold membership (a paid subscription tier) or a margin account, you can borrow money to buy ETFs. This is called buying on margin. The interest rate and rules vary, but the basic idea is that you can invest more than you have in cash. This amplifies both gains and losses and carries real risk — if the ETF drops sharply, you may owe money even after selling.
Most new investors should not use margin. Stick to buying whole shares with cash you actually have. Margin is a tool for experienced traders who understand the risks.
Frequently Asked Questions
Can I buy fractional ETF shares on Robinhood?
No. Robinhood offers fractional shares for stocks but not for ETFs. You must buy whole shares only. If an ETF costs $200 per share and you have $250, you can buy one share but not 1.25 shares.
Do I pay taxes on ETF dividends immediately?
You owe taxes on dividends in the year you receive them, even if you reinvest the cash. In a taxable account, Robinhood will send you a 1099 form at tax time showing all dividends paid. In an IRA or Roth IRA, dividends are not taxed until you withdraw (or never, in a Roth).
What happens if I sell an ETF before the two-day settlement is complete?
You cannot sell an ETF before it settles. The shares are locked until two business days have passed. If you try to sell before settlement, Robinhood will reject the order or warn you that the trade cannot execute.
Are ETFs safer than individual stocks?
ETFs spread your money across many holdings, so a single bad company does not wipe out your investment. Individual stocks are riskier because one company's failure can mean a large loss. But ETFs can still lose value if the overall market or sector declines.
Can I set up automatic purchases of ETFs on Robinhood?
Robinhood does not offer automatic recurring purchases or dollar-cost averaging features. You have to manually place each buy order. Some other brokers offer this feature, but Robinhood does not.