5 ETFs That Robinhood Investors Can't Get Enough Of

Retail investors person go a important portion of the banal market, acknowledgment to innovations specified arsenic online investing and commission-free trading. In fact, according to BlackRock, retail ownership of U.S. stocks has accrued to astir one-fifth of mean regular trading activity. That fig was successful the low-single-digit percent scope anterior to the COVID-19 pandemic.

A large crushed for this is owed to fashionable online brokerage Robinhood, which pioneered commission-free trading. Now, the marketplace often looks astatine what's happening connected Robinhood to gauge retail sentiment. Robinhood regularly publishes a database of the 100 most-owned stocks and exchange-traded funds (ETFs) connected the platform.

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Here are 5 ETFs that fertile successful the apical 20 of this database of investments that Robinhood investors can't get capable of.

I americium grouping the Vanguard S&P 500 ETF (NYSEMKT: VOO) and the State Street SPDR S&P 500 ETF Trust (NYSEMKT: SPY) because, though they are tally by antithetic fiscal firms, some ETFs let investors to get vulnerability to the broader benchmark S&P 500 index, which represents astir 500 large-cap stocks successful the U.S. crossed sectors.

Investors bargain the S&P 500 to summation vulnerability to the broader market, truthful if you perceive idiosyncratic accidental they are overweight U.S. stocks, they are apt doing this done the S&P 500, which is astir easy purchased done an ETF. ETFs are an casual mode for investors to bargain the broader marketplace due to the fact that they clasp a handbasket of stocks, are typically inexpensive, and tin beryllium bought and sold arsenic casual arsenic idiosyncratic stocks.

Given however good the broader marketplace has done successful caller years, it is nary astonishment that owning the S&P 500 is fashionable connected Robinhood. At the aforesaid time, determination is besides large statement astir the market-weighted scale due to the fact that truthful overmuch of it is present made up of the ample artificial quality stocks successful the "Magnificent Seven," which a important information of investors judge are overvalued. So if the "Magnificent Seven" struggles, the full S&P 500 whitethorn instrumentality a hit.

Other investors judge selling the AI giants volition pb to rotation into the remainder of the index. There has been immoderate of that to commencement the year, but it remains to beryllium seen whether the broader marketplace tin thrive if the "Magnificent Seven" struggles, due to the fact that they whitethorn beryllium much intertwined than immoderate think.