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Does Robinhood Offer Mutual Funds? What You Can Buy Instead

By Adrian Watts · Stocks and Funds Writer

Robinhood does not offer mutual funds, but it does offer ETFs that serve the same purpose

Robinhood, the brokerage app known for commission-free stock trading, does not let you buy traditional mutual funds. If you open an account there and search for a mutual fund by name, you will not find it. However, Robinhood does offer exchange-traded funds (ETFs), which are similar enough that most investors who want broad diversification can build a portfolio without mutual funds at all.

The practical difference between a mutual fund and an ETF matters less than you might think. Both hold a basket of stocks or bonds, both let you own dozens or hundreds of securities with a single purchase, and both charge annual fees. The main differences are how they trade and how much they cost — and on Robinhood, ETFs often win on both counts.

Key Takeaways

  • Robinhood does not support mutual fund purchases, but ETFs available on the platform serve the same diversification purpose.
  • ETFs on Robinhood trade like stocks during market hours, while mutual funds settle once per day after the market closes.
  • Many low-cost ETFs charge annual fees of 0.03% to 0.20%, which is often cheaper than mutual fund fees.
  • If you want mutual funds specifically, you will need to open an account at a different brokerage such as Fidelity, Vanguard, or Schwab.

Why Robinhood does not offer mutual funds

Robinhood's business model is built around stocks and ETFs, not mutual funds. The platform is designed for active trading — buying and selling during the day — and mutual funds do not fit that model. When you buy a mutual fund, your order does not execute until after the market closes, and you cannot sell it until the next trading day. Robinhood's interface and fee structure assume you want to trade throughout the day, which is why the app focuses on stocks and ETFs instead.

Robinhood also does not charge commissions on trades, which works well for ETFs (which trade like stocks) but creates a mismatch with mutual funds. Many mutual fund companies expect to earn money through annual management fees, not per-trade commissions. Robinhood's zero-commission model means the platform has less incentive to add mutual funds to its offering.

ETFs available on Robinhood that replace mutual funds

If you want the diversification that a mutual fund provides, Robinhood's ETF selection covers most common goals. You can buy broad market ETFs like the Vanguard S&P 500 ETF (VOO) or the SPDR S&P 500 ETF Trust (SPY), which track the 500 largest U.S. companies. You can buy total market ETFs like the Vanguard Total Stock Market ETF (VTI), which holds thousands of stocks. You can buy bond ETFs like the Vanguard Total Bond Market ETF (BND) or the iShares Core U.S. Aggregate Bond ETF (AGG).

For investors who want international exposure, Robinhood offers ETFs like the Vanguard FTSE Developed Markets ETF (VEA) and the Vanguard FTSE Emerging Markets ETF (VWO). For those interested in specific sectors or themes, the platform has hundreds of specialized ETFs covering technology, healthcare, real estate, dividend stocks, and more. The selection is deep enough that most investors can build a complete portfolio without ever needing a mutual fund.

How ETFs on Robinhood compare to mutual funds elsewhere

The main advantage of ETFs on Robinhood is cost and flexibility. Many ETFs charge annual expense ratios between 0.03% and 0.20%, which is often lower than mutual fund fees. On a $10,000 investment, a 0.10% fee costs $10 per year; a 1% fee costs $100. Over decades, that difference compounds. ETFs also trade during market hours, so you can buy or sell whenever the market is open, whereas mutual funds only price once per day.

The main advantage of mutual funds at other brokerages is simplicity and automatic investing. Many mutual fund companies let you set up automatic monthly contributions, and some offer funds with no transaction fees if you buy directly from the fund company. Mutual funds also do not require you to think about when to buy — you just contribute and the fund handles the rest. If that simplicity matters to you, a brokerage like Fidelity or Vanguard may be a better fit than Robinhood.

How to build a diversified portfolio on Robinhood without mutual funds

Start by deciding what mix of stocks and bonds fits your timeline and risk tolerance. A common approach for long-term investors is 80% stocks and 20% bonds, or 90% stocks and 10% bonds. Then pick one or two broad ETFs to hold that allocation. For example, you could buy VOO (U.S. stocks) and BND (bonds), or VTI (all U.S. stocks) and VXUS (international stocks).

Robinhood lets you buy fractional shares, which means you can invest any dollar amount — not just whole shares. If you have $500 to invest and want an 80/20 split, you can buy $400 of VOO and $100 of BND in a single transaction. You can also set up recurring investments if you want to contribute the same amount every week or month, though Robinhood's automatic investing feature is less flexible than some competitors.

When to use a different brokerage for mutual funds

If you have a strong preference for mutual funds, or if you want to invest in a specific mutual fund that Robinhood does not support, you will need to open an account elsewhere. Fidelity, Vanguard, Charles Schwab, and E-Trade all offer mutual funds alongside ETFs. Vanguard and Fidelity also let you buy mutual funds directly from the fund company with no transaction fees, which can save money if you plan to hold for a long time.

You might also prefer a different brokerage if you want automatic monthly contributions and a simple, hands-off approach. Vanguard's Brokerage Account and Fidelity's Brokerage Account both support automatic investing into mutual funds or ETFs. If you are just starting out and want to set it and forget it, those platforms may feel less overwhelming than Robinhood's trading-focused interface.

Frequently Asked Questions

Can I buy mutual funds on Robinhood at all?

No. Robinhood does not support mutual fund purchases. You can only buy stocks, ETFs, options, and cryptocurrencies on the platform. If you want to own a specific mutual fund, you will need to open an account at a brokerage that offers them, such as Fidelity, Vanguard, or Schwab.

Are ETFs on Robinhood cheaper than mutual funds?

Often, yes. Many ETFs charge annual fees of 0.03% to 0.20%, while mutual funds often charge 0.50% to 1.00% or more. However, some mutual funds have low fees too, so it depends on which specific fund you are comparing. The difference adds up over time, especially on large accounts.

Can I set up automatic monthly investments on Robinhood?

Yes. Robinhood lets you schedule recurring investments into any stock or ETF. You can set up weekly, biweekly, or monthly contributions. The feature is less customizable than some competitors, but it works for basic automatic investing.

What is the cheapest way to build a diversified portfolio on Robinhood?

Buy one or two broad, low-cost ETFs like VOO (U.S. stocks), VTI (total U.S. market), or VEA (international stocks). These typically charge 0.03% to 0.08% annually. You can also add a bond ETF like BND or AGG if you want fixed-income exposure. This approach gives you instant diversification with minimal fees.

Should I switch from Robinhood to get mutual funds?

Only if you have a specific mutual fund you want to own, or if you prefer the simplicity and automatic investing features of platforms like Vanguard or Fidelity. For most investors, ETFs on Robinhood work just as well and often cost less. You do not need to switch unless mutual funds solve a problem that ETFs do not.