Yes, you can buy ETFs on Robinhood

Robinhood lets you buy and sell exchange-traded funds (ETFs) in the same way you buy individual stocks. You search for the ETF by its ticker symbol, place an order during market hours, and the shares settle in your account. There are no commission fees on ETF trades, just as there are none on stock trades.

The main limitation is that Robinhood does not offer fractional shares for ETFs — 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, but you cannot buy 1.33 shares. Individual stocks on Robinhood do support fractional purchases, so this is a meaningful difference if you are working with a small account or want to deploy cash precisely.

Key Takeaways

  • ETFs trade on Robinhood with zero commission, the same as stocks, and you can buy them during regular market hours using the app or web platform.
  • Robinhood requires whole-share purchases for ETFs, so you cannot buy fractional ETF shares even if you have less than the full share price available.
  • You can set up automatic recurring investments in ETFs through Robinhood's recurring investment feature, which buys whole shares on a schedule you choose.
  • ETF dividends and distributions are automatically deposited into your account and can be reinvested or left as cash depending on your settings.
  • Robinhood does not restrict which ETFs you can buy, but you should verify the fund's expense ratio and holdings before trading.

How to place an ETF order on Robinhood

Open the Robinhood app or web platform and tap or click the search icon. Type the ETF's ticker symbol — for example, SPY for the SPDR S&P 500 ETF or VOO for the Vanguard S&P 500 ETF. The fund will appear in the results.

Tap or click the ETF name to open its detail page. You will see the current price, the day's price change, and a chart of historical performance. Scroll down to see the fund's holdings, expense ratio, and other details. When you are ready to buy, tap or click the "Buy" button.

Enter the number of whole shares you want to purchase. Robinhood will show you the total cost and ask you to confirm. The order executes when ready during market hours (9:30 a.m. to 4:00 p.m. Eastern time on weekdays). If you place an order outside market hours, it will execute at the next market open.

Whole shares versus fractional shares on Robinhood

Robinhood's fractional share feature works for stocks but not for ETFs. This means if you want to invest $100 in an ETF that costs $120 per share, you cannot buy 0.83 shares. You must either buy one whole share for $120 (spending more than you planned) or wait until you have enough cash for a second share.

This restriction affects smaller accounts most directly. If you are investing $50 or $100 at a time and the ETF you want costs more than that, you will have cash sitting idle until you accumulate enough for another whole share. Some investors work around this by choosing lower-priced ETFs or by saving up before placing an order.

Stocks on Robinhood do support fractional purchases, so if you want to invest a specific dollar amount and have flexibility on what you buy, you could use stocks instead. However, most people who want broad market exposure prefer ETFs because they own a basket of holdings in a single trade.

Setting up automatic ETF investments on Robinhood

Robinhood offers a recurring investment feature that lets you buy the same ETF on a schedule — weekly, biweekly, or monthly. To set this up, open the ETF's detail page, tap or click "Invest," and then select "Set up recurring investment." Choose your frequency and the number of shares you want to buy each time.

Robinhood will deduct the cost from your account on the day you specify. If you do not have enough cash for the full order, the recurring investment will not execute that cycle. You will need to add funds or wait until the next scheduled date. This feature is useful if you want to build a position over time without having to place an order manually each month.

You can pause or cancel a recurring investment at any time from the same detail page. Changes take effect on the next scheduled purchase date, not when ready.

ETF dividends and distributions on Robinhood

Most ETFs pay dividends or distributions to shareholders. When an ETF you own pays out, Robinhood deposits the cash into your account automatically. The amount depends on how many shares you own and the fund's payout rate.

By default, Robinhood leaves dividends as cash in your account. You can then use that cash to buy more shares, or leave it sitting there. Some brokers offer automatic dividend reinvestment (DRIP), which buys new shares with the payout automatically, but Robinhood does not offer this feature for ETFs. You would need to manually reinvest by placing a new buy order.

The dividend amount and payment date are listed on the ETF's detail page. You can also see a history of all dividends you have received in your account statements.

ETF fees and expenses on Robinhood

Robinhood charges no commission on ETF trades, but the ETF itself has an expense ratio — an annual fee that the fund manager charges to cover costs. This fee is deducted from the fund's value automatically and is reflected in the share price you see.

For example, the Vanguard S&P 500 ETF (VOO) has an expense ratio of 0.03 percent, meaning you pay $3 per year for every $10,000 invested. The SPDR S&P 500 ETF (SPY) charges 0.09 percent. These fees are paid to the fund company, not to Robinhood, and you do not see them as a separate line item when you trade.

When comparing ETFs, the expense ratio is one of the most important numbers to look at. A difference of 0.05 percent may seem small, but over decades it compounds into a meaningful difference in returns. Robinhood's detail page for each ETF shows the expense ratio clearly.

Which ETFs can you buy on Robinhood

Robinhood does not restrict which ETFs you can buy. You can purchase any ETF that trades on a U.S. stock exchange, including broad market funds like VOO or SPY, sector funds like XLK (technology) or XLV (healthcare), bond ETFs, international ETFs, and specialty funds.

The only practical limits are the ones you set yourself. Before buying any ETF, check the fund's holdings, expense ratio, and trading volume. Low-volume ETFs can have wider bid-ask spreads, meaning the price you pay to buy may be noticeably higher than the price you would receive if you sold when ready. This is less of a concern with popular funds like SPY or VOO, which trade billions of dollars daily.

Robinhood's detail page for each ETF includes all this information. You can also search for ETF reviews and comparisons on financial websites to understand what you are buying before you trade.

Frequently Asked Questions

Can I buy fractional ETF shares on Robinhood?

No. Robinhood only allows whole-share purchases for ETFs. You must have enough cash to buy at least one full share at the current price. Stocks on Robinhood do support fractional shares, but ETFs do not.

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

No. Robinhood charges zero commission on all ETF trades, just as it does on stocks. You only pay the ETF's internal expense ratio, which is deducted from the fund's value over time and is not a separate fee you see at checkout.

What happens to ETF dividends when I own them on Robinhood?

Dividends are deposited into your account as cash automatically. Robinhood does not offer automatic dividend reinvestment for ETFs, so you would need to manually place a new buy order if you want to reinvest the payout into more shares.

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

Yes. Robinhood's recurring investment feature lets you buy the same ETF on a weekly, biweekly, or monthly schedule. You choose the number of shares and the frequency, and Robinhood deducts the cost from your account on the dates you specify. You can pause or cancel anytime.

Are there any ETFs I cannot buy on Robinhood?

Robinhood does not restrict which ETFs you can buy. Any ETF that trades on a U.S. exchange is available. However, you should check the fund's expense ratio and trading volume before buying, as very low-volume ETFs can have wider spreads between the buy and sell price.