What indexes are available on Robinhood

Robinhood does not sell index funds directly — the platform only lets you buy individual stocks and exchange-traded funds (ETFs). The good news is that many ETFs track major indexes, so you can own an index through an ETF instead of a mutual fund.

The most common index ETFs available on Robinhood track the S&P 500, the Nasdaq-100, the Russell 2000, and the total U.S. stock market. You can also find ETFs that track bond indexes, international stock indexes, and sector-specific indexes like technology or healthcare. Each ETF trades like a stock — you buy shares at a market price that changes throughout the day.

Because Robinhood charges no commission on stock and ETF trades, the cost of buying an index ETF there is the same as buying it anywhere else. What matters more is the ETF's expense ratio — the annual fee the fund company charges to hold the index. Lower expense ratios mean more of your money stays invested.

Key Takeaways

  • Robinhood offers index exposure through ETFs, not through index mutual funds, because the platform only sells stocks and ETFs.
  • Popular index ETFs on Robinhood include those tracking the S&P 500, total U.S. stock market, Nasdaq-100, and Russell 2000.
  • ETF expense ratios vary — some charge 0.03% annually while others charge 0.50% or more, so comparing costs matters over time.
  • Index ETFs trade during market hours like stocks, so their price changes throughout the day rather than settling once at day's end.

How index ETFs work differently from index mutual funds

An index mutual fund pools your money with other investors and buys all the stocks in an index. The fund company prices it once per day after the market closes. An index ETF does the same thing — it holds the stocks in an index — but trades on an exchange like a stock, so the price updates every few seconds during market hours.

On Robinhood, this difference matters because you can only buy ETFs, not mutual funds. If you want index exposure, you must use an ETF. The upside is that ETFs often have lower expense ratios than mutual funds tracking the same index, so your costs are typically lower anyway.

One trade-off: because ETFs trade like stocks, their price can drift slightly above or below the actual value of the stocks inside them. This gap is usually tiny — a few cents on a $100 ETF — but it exists. Mutual funds always trade at their exact underlying value, with no gap.

S&P 500 index ETFs on Robinhood

The S&P 500 is the most widely tracked index in the U.S. It holds 500 large-cap stocks and represents about 80% of the total U.S. stock market by value. Several ETFs track it, and all are available on Robinhood.

The three largest S&P 500 ETFs are SPY, IVV, and VOO. SPY is the oldest and most heavily traded. IVV and VOO have lower expense ratios — both charge around 0.03% annually, while SPY charges around 0.09%. The difference is small in dollar terms, but it compounds over decades. On a $10,000 investment, you would pay roughly $3 per year with VOO or IVV versus $9 per year with SPY.

All three hold nearly identical stocks in nearly identical proportions, so the choice comes down to cost and personal preference. Many investors choose VOO or IVV for the lower fee. All three trade millions of shares daily, so you can buy or sell quickly without moving the price.

Total stock market and other broad index ETFs

If you want to own the entire U.S. stock market rather than just the 500 largest companies, you can buy a total market ETF. These track indexes that include small-cap and mid-cap stocks alongside large-caps. The two most common are VTI and ITOT, both available on Robinhood.

VTI holds roughly 3,500 stocks and charges 0.03% annually. ITOT holds roughly 2,500 stocks and charges 0.03% as well. The difference in holdings is small enough that the two track nearly the same returns over time. Both are more diversified than an S&P 500 ETF because they include smaller companies that may grow faster but also carry more risk.

For international stock exposure, you can buy VEA (developed markets outside the U.S.) or VXUS (all non-U.S. markets). Both charge 0.05% annually. Bond index ETFs like BND (total U.S. bond market) and VBTLX (also total bond market) are available too, though VBTLX is a mutual fund and not tradeable on Robinhood — you would need to use BND or a similar ETF instead.

Expense ratios and why they matter

An expense ratio is the percentage of your investment the fund company charges each year to manage the fund. A 0.03% ratio means you pay $3 per year on a $10,000 investment. A 0.50% ratio means you pay $50 on the same amount. Over 30 years, that difference compounds significantly.

Most broad index ETFs charge between 0.03% and 0.10% annually. Some specialty or leveraged ETFs charge much more — 0.50% or higher. When comparing index ETFs on Robinhood, check the expense ratio before you buy. The information is listed in the ETF's details on the app.

Lower is almost always better for index funds because the goal is to match the index, not to beat it. A fund that charges less will match the index more closely than one that charges more. Over a 20-year holding period, a 0.07% difference in expense ratio can mean thousands of dollars in extra returns.

How to find and compare index ETFs on Robinhood

Open the Robinhood app and search for the ETF ticker symbol — SPY, VOO, VTI, or whatever you are considering. The app shows the current price, the expense ratio, and a chart of past performance. Tap the ETF name to see more details, including what stocks it holds and how it has performed over different time periods.

To compare two ETFs side by side, search for each one and note the expense ratio and the holdings. Most index ETFs tracking the same index will perform nearly identically, so the main difference is cost. If two ETFs track the S&P 500 and one charges 0.03% while the other charges 0.10%, the cheaper one will deliver slightly better returns over time, all else equal.

You can also look up the index itself to understand what you are buying. The S&P 500 website lists all 500 companies. The Russell 2000 website shows the 2,000 small-cap stocks in that index. Understanding what an index holds helps you decide whether it fits your goals.

Risks and limitations of index investing on Robinhood

Index ETFs are less risky than picking individual stocks, but they are not risk-free. If the overall market falls, your index ETF falls with it. An S&P 500 ETF will drop if the 500 largest U.S. companies lose value. A total market ETF will drop if the entire U.S. stock market declines. This is normal and expected, but it means your money can go down in the short term.

Robinhood's main limitation for index investing is that it does not offer automatic reinvestment of dividends. When an index ETF pays a dividend, the cash lands in your account, and you must manually buy more shares if you want to reinvest it. Other brokers offer automatic reinvestment, which compounds your returns over time without extra work. On Robinhood, you have to remember to reinvest yourself.

Another consideration: Robinhood does not offer fractional shares of ETFs in all cases, though this varies by ETF. Some ETFs allow fractional share purchases, while others require you to buy whole shares. Check the ETF details before you buy if you want to invest a specific dollar amount.

Frequently Asked Questions

Can I buy index mutual funds on Robinhood?

No. Robinhood only offers stocks and ETFs. If you want index exposure, you must buy an index ETF instead of an index mutual fund. Many index ETFs have lower expense ratios than mutual funds anyway, so this is often an advantage.

What is the cheapest index ETF on Robinhood?

Several index ETFs charge 0.03% annually, including VOO (S&P 500), VTI (total U.S. market), and ITOT (total U.S. market). All three are among the lowest-cost options available. The difference between 0.03% and 0.05% is small in dollar terms but adds up over decades.

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

No. Robinhood charges no commission on stock or ETF trades. You only pay the ETF's expense ratio, which is charged annually as a percentage of your holdings, not as a one-time fee when you buy.

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

Robinhood does not offer automatic recurring investments. You must manually buy shares each time you want to invest. Other brokers offer this feature, so if automatic investing is important to you, compare platforms before opening an account.

What happens if an index ETF I own gets delisted?

This is extremely rare for major index ETFs. Large, popular ETFs like SPY and VOO are unlikely to be delisted. If an ETF were delisted, you would receive notice and could sell your shares before the delisting date. Your shares would not straightforward disappear.