Robinhood does not offer mutual funds directly, but you can buy individual stocks and exchange-traded funds (ETFs) that track the same market segments

Robinhood's platform is built around individual stocks, options, and cryptocurrencies. The company does not sell mutual funds — the pooled investment products that a fund manager assembles and rebalances. If you want exposure to a diversified basket of holdings without picking individual stocks, your main option on Robinhood is an ETF, which trades like a stock but holds many securities inside it.

The distinction matters because mutual funds and ETFs serve similar goals but work differently on Robinhood. A mutual fund requires you to buy shares through a fund company or a brokerage that offers them; Robinhood straightforward does not carry them. An ETF, by contrast, trades on an exchange just like Apple or Tesla stock does, so Robinhood can offer it without any special arrangement.

Key Takeaways

  • Robinhood does not sell mutual funds, but it does offer ETFs that provide similar diversification and low costs.
  • ETFs on Robinhood trade during market hours like stocks, while mutual funds typically settle once per day after the market closes.
  • You can build a diversified portfolio on Robinhood using ETFs alone, without needing to pick individual stocks.
  • If you want access to mutual funds, you would need to use a different brokerage such as Fidelity, Vanguard, or Schwab alongside or instead of Robinhood.

How ETFs work as a mutual fund alternative on Robinhood

An exchange-traded fund is a collection of stocks or bonds bundled together and sold as a single ticker symbol. When you buy one share of an ETF, you own a slice of everything inside it. For example, the Vanguard S&P 500 ETF (ticker: VOO) holds all 500 companies in the S&P 500 index, and you can buy it on Robinhood the same way you would buy one share of any stock.

The practical difference from a mutual fund is timing and price. When you buy a mutual fund, you place an order during the trading day, but the transaction settles at the closing price after the market shuts down. When you buy an ETF on Robinhood, the price updates in real time during market hours, and you can see exactly what you are paying the moment you click buy. This also means you can sell an ETF when ready if the market moves, whereas a mutual fund order cannot execute until the next day.

Costs are usually lower with ETFs than with actively managed mutual funds. Most ETFs charge an annual expense ratio — a small percentage of your holdings that covers the fund's operating costs — and Robinhood does not add any additional fees on top. Mutual funds, especially those managed by a person who picks stocks, often charge higher expense ratios because they employ a team of analysts.

Types of ETFs available on Robinhood

Robinhood carries thousands of ETFs covering nearly every market segment and strategy. The most common categories are index ETFs, which track a market index like the S&P 500 or the Nasdaq-100; sector ETFs, which focus on one industry such as technology or healthcare; and bond ETFs, which hold fixed-income securities instead of stocks.

You can also find international ETFs that track markets outside the United States, dividend-focused ETFs that emphasize stocks that pay regular income, and theme-based ETFs that group companies around trends like renewable energy or artificial intelligence. Robinhood's search function lets you filter by category, expense ratio, and holdings, so you can compare options before you buy.

The most widely used ETFs on Robinhood are the broad index funds: VOO and IVV (both track the S&P 500), QQQ (Nasdaq-100), and VTI (total U.S. stock market). These are low-cost, diversified, and require almost no maintenance once you own them. Many people build an entire portfolio using just two or three of these ETFs rather than trying to pick individual stocks.

Why Robinhood does not offer mutual funds

Robinhood's business model centers on making stock trading fast and cheap. Mutual funds require a different infrastructure: fund companies must process orders at the end of each trading day, maintain separate accounts for each investor, and handle distributions of dividends and capital gains. This overhead does not fit Robinhood's design, which prioritizes real-time trading and minimal friction.

Additionally, mutual funds are typically sold through fund companies (like Vanguard or Fidelity) or through brokerages that have agreements to carry them. Robinhood has chosen to focus on securities that trade on exchanges — stocks, options, and ETFs — rather than negotiate relationships with hundreds of mutual fund providers. The result is a simpler platform, but one that excludes mutual funds entirely.

Building a diversified portfolio without mutual funds

You do not need mutual funds to diversify on Robinhood. A straightforward three-ETF portfolio — for example, 60% VOO (U.S. stocks), 20% VXUS (international stocks), and 20% BND (bonds) — gives you exposure to most of the global market with minimal effort. You buy each ETF once, set up automatic deposits if you want, and let them grow. Rebalancing takes minutes once or twice a year.

If you prefer a more hands-on approach, you can mix ETFs with individual stocks. Many investors use ETFs as a foundation for stability and pick a few individual stocks in industries they understand. This hybrid approach gives you diversification from the ETFs while letting you act on specific ideas.

The key is to start with a clear goal — how much risk you can tolerate, how long you plan to hold, and how much time you want to spend managing the account — and then choose ETFs that match that goal. Robinhood's tools let you see your overall allocation and performance, so you can track whether you are staying on course.

Moving mutual funds to or from Robinhood

If you own mutual funds in another brokerage account and want to consolidate on Robinhood, you will need to sell the mutual funds first. Mutual funds cannot be transferred between brokerages the way stocks can. Once you sell, the cash lands in your account, and you can use it to buy ETFs on Robinhood. Be aware that selling may trigger capital gains taxes if the funds have grown in value, so consider consulting a tax professional before you make the move.

Conversely, if you want to move money from Robinhood to a brokerage that offers mutual funds, you can transfer your cash or securities out. Robinhood allows outbound transfers of stocks and ETFs to other brokerages, though the process takes a few business days. You would then use that cash or those holdings to buy mutual funds at your new brokerage.

Frequently Asked Questions

Can I buy mutual funds on Robinhood at all?

No. Robinhood does not carry any mutual funds. Your only option for a pooled investment product on Robinhood is an ETF, which trades like a stock and holds many securities inside it.

Are ETFs better than mutual funds?

Not necessarily better, just different. ETFs usually have lower costs and trade in real time, while mutual funds may offer more specialized strategies and automatic rebalancing. For most people starting out on Robinhood, ETFs are simpler and cheaper.

What if I want both mutual funds and stocks on one platform?

You would need to use a brokerage that offers both, such as Fidelity, Vanguard, Charles Schwab, or E-Trade. You can also keep accounts at multiple brokerages — for example, mutual funds at Vanguard and individual stocks at Robinhood.

Do I pay a commission to buy ETFs on Robinhood?

No. Robinhood charges no commission on stock or ETF trades. You only pay the ETF's internal expense ratio, which is deducted automatically from your returns each year.

How do I choose which ETF to buy if I am new to investing?

Start with a broad index ETF like VOO (S&P 500) or VTI (total U.S. market). These hold hundreds or thousands of companies, so you get when ready diversification. Once you understand how they work, you can add other ETFs to round out your portfolio.