Robinhood does not offer mutual funds, but it does offer exchange-traded funds (ETFs) that serve a similar purpose

Robinhood's investment platform is built around individual stocks and options, not mutual funds. If you open a Robinhood account looking to buy a mutual fund, you will not find one. However, Robinhood does offer exchange-traded funds (ETFs), which are similar to mutual funds in that they hold a basket of securities, but they trade like stocks during market hours and typically have lower fees.

The distinction matters because mutual funds and ETFs work differently. 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. An ETF trades throughout the day like a stock, and its price changes minute by minute. Robinhood's structure — built for active trading — makes ETFs a natural fit for their platform, while mutual funds do not fit that model.

Key Takeaways

  • Robinhood offers ETFs but not mutual funds; ETFs trade like stocks and are available commission-free on the platform.
  • You can search for and buy ETFs by ticker symbol on Robinhood just as you would buy an individual stock.
  • Mutual funds require a different type of account structure and are not available through Robinhood.
  • If you want diversified, low-cost investing, ETFs on Robinhood can provide that, though you will need to choose and monitor them yourself.

How ETFs work on Robinhood

When you search for an ETF on Robinhood, you search by its ticker symbol — the same way you would search for Apple or Tesla. Common broad-market ETFs like SPY, VOO, or QQQ all trade on Robinhood with no commission. You can buy fractional shares, meaning you can invest any dollar amount rather than having to buy whole shares at the current price.

ETFs hold a collection of stocks or bonds inside them. For example, VOO tracks the S&P 500, so when you buy VOO, you own a tiny piece of 500 large U.S. companies. The fund's value rises and falls with those holdings. You can sell an ETF anytime during market hours, just like a stock, and the money lands in your account within a few days.

Robinhood does not charge a commission to buy or sell ETFs, which is one reason they are popular on the platform. However, the ETF itself has an expense ratio — an annual fee charged by the fund company — which ranges from nearly zero for broad index ETFs to higher amounts for specialized or actively managed ETFs. That fee is deducted from the fund's value automatically and does not appear as a separate charge to you.

Why Robinhood does not offer mutual funds

Mutual funds are sold through fund companies, brokers, or financial advisors, and they settle at the end of each trading day. Robinhood's entire platform is designed around real-time trading — you see prices update throughout the day, and you can buy or sell instantly. Mutual funds do not fit that model because they do not have a live price; they only price once daily after 4 p.m. Eastern Time.

Adding mutual funds would require Robinhood to build a separate system to handle daily pricing, settlement, and fund transfers. For a platform focused on active trading and fractional shares, it is simpler and more aligned with their business model to offer ETFs instead. Most brokers that do offer mutual funds charge higher fees or require minimum investments, which also conflicts with Robinhood's approach.

ETFs versus mutual funds: what you should know

If you are comparing ETFs to mutual funds, the main practical differences are timing and cost. An ETF price changes throughout the day, so you know exactly what you are paying when you buy. A mutual fund price is set once daily, so you do not know the exact price until after you place your order. ETFs typically have lower expense ratios than actively managed mutual funds, though some mutual funds — especially index mutual funds — have fees comparable to ETFs.

ETFs are also more tax-efficient than many mutual funds because of how they are structured. If you are investing in a taxable account (not a retirement account), this can matter. However, if you are investing in a Robinhood IRA or other retirement account, the tax difference is less relevant because those accounts are tax-sheltered anyway.

One advantage mutual funds have is that some come with professional management — a fund manager actively picks holdings. Most ETFs are passive index funds that simply track a benchmark. If you want active management, you would need to look outside Robinhood or choose an actively managed ETF, though those are less common and typically have higher fees.

What types of ETFs are available on Robinhood

Robinhood offers a wide range of ETFs covering different asset classes and strategies. You can find broad U.S. stock market ETFs (like VOO or VTI), international stock ETFs, bond ETFs, sector-specific ETFs (technology, healthcare, energy), and even specialty ETFs focused on themes like renewable energy or dividend-paying stocks.

The exact selection available can change, but Robinhood generally includes ETFs from major providers like Vanguard, iShares, and Invesco. You can search by ticker or browse by category within the app. Keep in mind that just because an ETF is available does not mean it is a good choice for your situation — you should research the fund's holdings, expense ratio, and whether it matches your investment goals before buying.

How to find and buy an ETF on Robinhood

Open the Robinhood app or website and use the search bar at the top. Type the ETF's ticker symbol — for example, "VOO" for Vanguard's S&P 500 ETF. The fund will appear in the results. Tap or click on it to see the fund's price, chart, holdings, and expense ratio information.

To buy, tap the "Buy" button, enter the dollar amount you want to invest (Robinhood will calculate fractional shares automatically), and confirm your order. The order executes immediately during market hours. If you place an order after the market closes, it will execute at the next market open. You can set up recurring investments if you want to buy the same ETF on a regular schedule.

Frequently Asked Questions

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

No, Robinhood does not offer mutual funds of any kind, including index mutual funds. However, index ETFs like VOO, VTI, or VTSAX's ETF equivalent (VTI) serve the same purpose — they track a market index at low cost. For most investors, an index ETF on Robinhood is a reasonable substitute.

Do I have to pay a commission to buy ETFs on Robinhood?

No. Robinhood charges no commission to buy or sell ETFs. You only pay the ETF's expense ratio, which is built into the fund's price and deducted automatically each year. Some ETFs have expense ratios below 0.05%, making them very cheap to own.

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

Yes. Robinhood allows you to set up recurring investments in stocks and ETFs. You can choose to invest a set dollar amount daily, weekly, or monthly. This is useful if you want to build a diversified portfolio over time without having to remember to buy manually.

What is the difference between an ETF and a stock on Robinhood?

A stock represents ownership in a single company. An ETF is a fund that holds many stocks (or bonds, or other securities) inside it. When you buy an ETF, you own a small piece of everything in that fund. ETFs are useful for diversification — spreading your money across many holdings at once — while stocks let you bet on individual companies.

Are there any ETFs I should avoid on Robinhood?

Avoid ETFs with very high expense ratios (above 0.5% for a basic index fund), leveraged or inverse ETFs if you are new to investing (they are designed for short-term trading and can lose value quickly), and any ETF you do not understand. Stick to well-known, low-cost index ETFs from major providers if you are unsure where to start.