Robinhood ETFs: 7 Best for Passive Investors in 2023

Robinhood, the popular trading platform, offers a wide range of exchange-traded funds (ETFs) that can be a great way for passive investors to diversify their portfolios and potentially generate long-term wealth. Here are seven of the best Robinhood ETFs for passive investors in 2023:

1. Schwab Total Stock Market Index ETF (SWTSX): This ETF tracks the performance of the entire U.S. stock market, making it a great way to gain broad exposure to the U.S. equity market. With an expense ratio of just 0.03%, it is also one of the most affordable ETFs available.

2. Vanguard Total World Stock ETF (VT): This ETF provides exposure to the entire global stock market, including developed and emerging markets. It is a great choice for investors who want to diversify their portfolios internationally. The expense ratio is 0.07%.

3. iShares Core S&P 500 ETF (IVV): This ETF tracks the performance of the S&P 500 index, which is a benchmark for the U.S. stock market. It is a good choice for investors who want to invest in the largest and most well-known companies in the U.S. The expense ratio is 0.03%.

   

4. Vanguard Total Bond Market ETF (BND): This ETF provides exposure to the entire U.S. bond market, including government bonds, corporate bonds, and mortgage-backed securities. It is a good choice for investors who want to add fixed income exposure to their portfolios. The expense ratio is 0.05%.

5. iShares Core MSCI Emerging Markets ETF (EEM): This ETF provides exposure to emerging markets stocks from around the world. It is a good choice for investors who want to diversify their portfolios internationally and potentially benefit from the growth potential of emerging markets. The expense ratio is 0.14%.

6. Vanguard Real Estate ETF (VNQ): This ETF provides exposure to real estate investment trusts (REITs), which are companies that own and operate real estate properties. It is a good choice for investors who want to add real estate exposure to their portfolios and potentially benefit from the potential for income and appreciation. The expense ratio is 0.12%.

7. SPDR Gold Shares ETF (GLD): This ETF provides exposure to gold, which is a precious metal that is often considered a safe-haven asset. It is a good choice for investors who want to diversify their portfolios and potentially hedge against inflation. The expense ratio is 0.40%.

These are just a few of the many Robinhood ETFs that are available to passive investors. When choosing an ETF, it is important to consider your investment goals, risk tolerance, and time horizon. You should also consider the expense ratio of the ETF, which is the annual fee charged by the fund.

Common Mistakes to Avoid When Investing in Robinhood ETFs

Here are some common mistakes to avoid when investing in Robinhood ETFs:

• Not diversifying your portfolio. ETFs are a great way to diversify your portfolio, but it is important to not put all of your eggs in one basket. Make sure to invest in a mix of ETFs that track different asset classes and markets.
• Investing too much money in one ETF. ETFs are a great way to get exposure to a particular asset class or market, but it is important to not invest too much money in any one ETF. This can increase your risk of loss if the ETF does not perform well.
• Not rebalancing your portfolio regularly. As your investment goals and risk tolerance change over time, it is important to rebalance your portfolio regularly. This means selling some of your winners and buying more of your losers to maintain your desired asset allocation.
• Trying to time the market. It is impossible to time the market, so don't try. Instead, invest for the long term and ride out the ups and downs of the market.

FAQs About Robinhood ETFs

Here are some frequently asked questions about Robinhood ETFs:

• Are Robinhood ETFs safe? Yes, Robinhood ETFs are safe. ETFs are regulated by the Securities and Exchange Commission (SEC) and are required to meet certain requirements, such as providing investors with regular disclosure of their holdings and financial performance.
• What are the fees for Robinhood ETFs? The fees for Robinhood ETFs vary depending on the fund. However, many Robinhood ETFs have expense ratios of 0.10% or less, which is very low.
• How do I buy Robinhood ETFs? You can buy Robinhood ETFs through the Robinhood app or website. Simply search for the ETF you want to buy and click on the "Buy" button.
• How do I sell Robinhood ETFs? You can sell Robinhood ETFs through the Robinhood app or website. Simply search for the ETF you want to sell and click on the "Sell" button.
• Can I use Robinhood ETFs to create a diversified portfolio? Yes, Robinhood ETFs are a great way to create a diversified portfolio. By investing in a mix of ETFs that track different asset classes and markets, you can reduce your risk of loss and potentially improve your returns.

Conclusion

Robinhood ETFs are a great way for passive investors to diversify their portfolios and potentially generate long-term wealth. By investing in a mix of ETFs that track different asset classes and markets, you can reduce your risk of loss and potentially improve your returns.