Robinhood does not offer traditional index funds, but you can build an index fund portfolio by buying individual stocks or exchange-traded funds (ETFs) that track indexes
Robinhood does not sell mutual funds or index funds as standalone products. However, the platform lets you buy ETFs — which are funds that track indexes like the S&P 500 or Nasdaq 100 — commission-free. You can also manually build a portfolio that mimics an index by buying the individual stocks that make up that index, though this requires more work and carries higher costs in trading time.
The practical difference: if you want to own the S&P 500 through Robinhood, you cannot buy a single mutual fund called "S&P 500 Index Fund." Instead, you buy an ETF like VOO or IVV, which hold the same 500 stocks and move in lockstep with the index. The result is nearly identical, but the mechanics are different.
Key Takeaways
- Robinhood offers ETFs that track major indexes like the S&P 500, Nasdaq 100, and Russell 2000, but does not offer mutual funds.
- ETFs on Robinhood trade commission-free and can be bought and sold during market hours like individual stocks.
- Popular index-tracking ETFs available on Robinhood include VOO, IVV, and QQQ, each tracking a different market segment.
- You can search for an ETF by its ticker symbol in the Robinhood app to see its holdings, expense ratio, and performance history before buying.
What ETFs are and how they work on Robinhood
An exchange-traded fund (ETF) is a basket of stocks or bonds bundled together and sold as a single security. Unlike a mutual fund, which you buy directly from the fund company, an ETF trades on a stock exchange like a regular stock. On Robinhood, you buy and sell ETFs the same way you buy individual stocks — by searching the ticker, entering a quantity, and confirming the trade.
The key advantage for index tracking: an ETF that holds all 500 stocks in the S&P 500 gives you the same diversification as owning each stock separately, but you buy it in one transaction. Robinhood charges no commission on ETF trades, so you pay only the bid-ask spread (the tiny difference between the buy and sell price at any moment).
ETFs also trade during regular market hours (9:30 a.m. to 4 p.m. Eastern time on weekdays), so you see the price change in real time. A mutual fund, by contrast, prices once per day after the market closes. This makes ETFs more flexible if you need to sell quickly, though it also means the price can move against you if you are not watching.
Index-tracking ETFs available on Robinhood
Robinhood carries hundreds of ETFs. Here are the most common ones that track major indexes:
| ETF Ticker | Index Tracked | What It Holds |
|---|---|---|
| VOO | S&P 500 | 500 large U.S. companies |
| IVV | S&P 500 | 500 large U.S. companies (similar to VOO) |
| QQQ | Nasdaq 100 | 100 large technology and growth stocks |
| VTI | Total U.S. Stock Market | Nearly all publicly traded U.S. companies |
| VXUS | International Stocks | Stocks from developed and emerging markets outside the U.S. |
| BND | U.S. Bond Market | Mix of government and corporate bonds |
To find an ETF on Robinhood, open the app, tap the search icon, and type the ticker symbol. The app will show you the current price, a chart of past performance, the expense ratio (the annual fee as a percentage of your investment), and a list of the top holdings. You can also see whether Robinhood offers fractional shares, which lets you buy a partial ETF if you do not have enough cash for a full share.
How to buy an index-tracking ETF on Robinhood
Open the Robinhood app and tap the search icon at the bottom. Type the ETF ticker (for example, "VOO" for the Vanguard S&P 500 ETF). When the ETF appears in the results, tap it to open the detail page.
On the detail page, scroll down to see the expense ratio, the fund's holdings, and performance over the past year. If you want to proceed, tap the "Buy" button. Enter the number of shares you want (or the dollar amount if fractional shares are available), review the order, and tap "Submit" to confirm. The trade executes when ready during market hours or at the next market open if you place it after hours.
Robinhood will hold the ETF in your account and show it in your portfolio. You can sell it anytime the market is open by tapping the ETF, selecting "Sell," entering the quantity, and confirming. There is no fee to buy or sell.
Expense ratios: what you pay to own an index ETF
Every ETF charges an expense ratio — an annual fee expressed as a percentage of your investment. For example, if an ETF has a 0.03% expense ratio and you own $10,000 of it, you pay $3 per year. This fee is deducted automatically and does not appear as a separate charge on your Robinhood account.
Index-tracking ETFs typically have very low expense ratios because they straightforward hold the stocks in an index and do not require active management. VOO charges 0.03%, IVV charges 0.03%, and QQQ charges 0.20%. Over decades, even small differences in expense ratios compound, so comparing them before you buy is worth the minute it takes.
Robinhood does not charge a commission on top of the expense ratio, which is why ETFs are cheaper to own on Robinhood than they would be through some other brokers. The only other cost is the bid-ask spread, which is usually a few cents per share on popular ETFs.
Why Robinhood does not offer mutual funds
Robinhood focuses on self-directed investing and does not offer mutual funds because mutual funds require more infrastructure to support. Mutual funds must price once per day, handle deposits and withdrawals, and manage shareholder accounts — all of which cost money. ETFs, by contrast, trade like stocks and require less backend support from the broker.
Additionally, Robinhood's business model emphasizes commission-free trading and low friction. Mutual funds typically come with higher minimum investments and are sold through fund companies or advisors, not through stock brokers. Robinhood chose to offer ETFs instead, which serve the same purpose for most investors but fit better with the platform's design.
Building your own index portfolio without index funds
If you want to own an index but prefer not to use an ETF, you can manually buy the individual stocks that make up the index. For the S&P 500, this would mean buying all 500 stocks in the proportions they appear in the index. Robinhood lets you do this commission-free, but it is impractical: you would need to research 500 companies, place 500 separate trades, and rebalance manually whenever the index changes.
A simpler alternative is to buy a few different index-tracking ETFs to diversify across asset classes. For example, you might buy VOO for U.S. large-cap stocks, VTI for broader U.S. market exposure, and BND for bonds. This gives you a diversified portfolio with just three trades and annual fees under 0.10%.
Frequently Asked Questions
Can I set up automatic investments in index ETFs on Robinhood?
Robinhood does not offer automatic recurring investments (sometimes called "dollar-cost averaging" features). You must manually buy ETF shares each time you want to invest. Some other brokers offer this feature, but Robinhood requires you to place each trade yourself.
What is the difference between VOO and IVV?
Both track the S&P 500 and hold the same 500 stocks in the same proportions. VOO is managed by Vanguard and charges 0.03% annually. IVV is managed by BlackRock and also charges 0.03%. The performance is nearly identical, so either one works. Pick whichever you prefer — the difference over time will be negligible.
Do I pay taxes on ETF dividends held in a regular Robinhood account?
Yes. If your ETF pays dividends (which most index ETFs do), Robinhood will deposit the cash into your account and report it to the IRS. You owe taxes on those dividends in the year you receive them, even if you reinvest the money. If you want to avoid this, you can hold index ETFs in a Robinhood IRA, where dividends are tax-deferred or tax-free depending on the account type.
Can I buy fractional shares of index ETFs on Robinhood?
Yes. Robinhood lets you buy fractional shares of most ETFs, so you can invest any dollar amount — for example, $50 or $100 — without waiting to save up for a full share. This makes it easier to start investing with small amounts of money.