Robinhood does not offer mutual funds
Robinhood does not let you buy mutual funds through its platform. The app and website support individual stocks, exchange-traded funds (ETFs), options, and cryptocurrencies, but not traditional mutual funds sold by fund companies like Vanguard, Fidelity, or American Funds.
This is a deliberate choice by Robinhood's design. The platform focuses on securities you can trade during market hours with fractional share purchases and no commission. Mutual funds operate differently — they settle after market close, often carry sales loads or fees, and require minimum investments that conflict with Robinhood's model.
If you want mutual fund exposure through Robinhood, you have one practical option: buy ETFs instead. ETFs track the same market segments as mutual funds, trade like stocks during the day, and cost nothing to buy on Robinhood.
Key Takeaways
- Robinhood's platform does not support purchases of mutual funds from any fund company.
- ETFs available on Robinhood provide the same diversification and market exposure as mutual funds at lower cost.
- You can buy fractional shares of ETFs on Robinhood with no commission, starting with any dollar amount.
- If you need a specific mutual fund, you will need to open an account at the fund company directly or use a brokerage that carries mutual funds.
Why Robinhood excludes mutual funds
Robinhood's business model depends on fast, low-cost trades of individual securities. Mutual funds do not fit that model. When you buy a mutual fund, the transaction settles after the market closes — usually the next business day. Robinhood prioritizes same-day settlement and real-time pricing, which mutual funds cannot provide.
Many mutual funds also carry sales loads (upfront fees paid to the fund company) or expense ratios that exceed what Robinhood customers expect to pay. Robinhood advertises zero-commission trading, and adding mutual funds with embedded fees would contradict that message.
Additionally, mutual funds often require minimum initial investments of $500 to $3,000. Robinhood's fractional share feature lets you invest any amount, even $1, which is incompatible with how mutual funds are structured.
ETFs as a mutual fund alternative on Robinhood
An exchange-traded fund is a basket of securities that trades like a stock. Most ETFs track the same indexes and market segments as mutual funds — total stock market, S&P 500, international stocks, bonds, sectors. The difference is execution: ETFs trade during market hours at changing prices, while mutual funds price once per day after close.
On Robinhood, you can buy ETFs with zero commission, in fractional shares, with no minimum investment. A $10 investment in a total market ETF gives you exposure to thousands of stocks, just as a mutual fund would. The expense ratios on popular ETFs (0.03% to 0.20% annually) are often lower than comparable mutual funds.
Examples of ETFs available on Robinhood that replicate common mutual fund strategies include VOO (Vanguard S&P 500), VTI (Vanguard Total Stock Market), BND (Vanguard Total Bond Market), and VXUS (Vanguard Total International Stock). You search for them by ticker symbol in the Robinhood app, just as you would a stock.
How to find and buy ETFs on Robinhood
Open the Robinhood app or website and tap the search icon at the bottom. Type the ETF ticker symbol — for example, "VOO" for the Vanguard S&P 500 ETF. The fund will appear in results with its current price, daily change, and a chart.
Tap the fund name to open its detail page. You will see the fund's holdings, expense ratio, and performance history. Tap "Buy" to enter your order. You can specify a dollar amount (for example, $50) rather than a number of shares, and Robinhood will calculate the fractional share for you. Confirm the order, and the purchase executes when ready during market hours or at the next market open if you buy after hours.
Unlike mutual funds, ETF orders settle in two business days, but you can sell the ETF at any time during market hours if you need the money before settlement completes.
When you might need a different brokerage
Some investors have specific reasons to own a particular mutual fund that is not replicated by an available ETF. If your employer's 401(k) plan includes a proprietary mutual fund, or if you inherited shares in a fund with a long track record you want to keep, you cannot hold those through Robinhood.
In those cases, you can open an account directly with the fund company (Vanguard, Fidelity, Schwab, T. Rowe Price, and others all accept individual investors) or use a full-service brokerage like Fidelity or Charles Schwab that carries mutual funds alongside stocks and ETFs. You would maintain both accounts — Robinhood for stocks and ETFs you trade frequently, and the other account for mutual funds.
Some people also prefer mutual funds because they offer automatic dividend reinvestment or systematic investment plans that are easier to set up than on Robinhood. If that workflow matters to you, a traditional brokerage may be a better fit.
Comparing the costs: mutual funds vs. ETFs on Robinhood
| Feature | Mutual Fund (at most brokerages) | ETF on Robinhood |
|---|---|---|
| Commission to buy | Often $0–$50 per transaction, or included | $0 |
| Minimum investment | $500–$3,000 typical | $1 or any amount |
| Fractional shares | Not available | Yes, on Robinhood |
| Typical expense ratio | 0.10%–0.75% annually | 0.03%–0.40% annually (varies by fund) |
| Trading hours | Prices set once daily after close | Trade anytime during market hours |
| Settlement | Next business day | Two business days |
Frequently Asked Questions
Can I transfer mutual funds I own elsewhere into Robinhood?
No. Robinhood does not accept mutual fund transfers. If you own mutual funds at another brokerage and want to move them, you would need to sell them there, transfer the cash to Robinhood, and buy ETFs instead. Be aware that selling may trigger capital gains taxes if the funds have appreciated.
Do ETFs have the same tax treatment as mutual funds?
Generally yes. Both are taxed on dividends and capital gains. ETFs can be slightly more tax-efficient because they trade intraday and you control when you sell, whereas mutual funds distribute gains to all shareholders at year-end regardless of when you bought in. For long-term buy-and-hold investing, the difference is usually small.
What if I want to invest in a specific sector or bond type that Robinhood doesn't have an ETF for?
Robinhood carries hundreds of ETFs covering most major sectors, bond types, and international markets. Search the Robinhood app for your sector or strategy — most common ones have multiple ETF options. If you cannot find what you need, you would need to open an account elsewhere.
Can I set up automatic monthly investments in an ETF on Robinhood?
Robinhood does not offer automatic recurring investments. You must manually buy each time. If systematic investing is important to your strategy, a traditional brokerage with automatic investment plans may be more convenient.
Are there any mutual funds available on Robinhood at all?
No. Robinhood's platform does not support any mutual funds from any fund company. The only fund-like products you can buy are ETFs.