Robinhood’s (HOOD) efforts to diversify its income streams, reducing reliance on transaction-based revenues to focus on subscription services, are impressive. Also, it launched new tools such as Robinhood Strategies, Robinhood Banking, and Robinhood Cortex to attract a wider customer base. The recent acquisition of TradePMR boosts its position in portfolio management and financial services. To invest in HOOD, investors may consider these two ETFs: ARK Fintech Innovation ETF (ARKF) and First Trust SkyBridge Crypto Industry and Digital Economy ETF (CRPT).
It is worth mentioning that HOOD is scheduled to report its Q1 results on April 30. Currently, analysts expect Robinhood to report Q1 earnings per share (EPS) of $0.33, up 83.3% from the prior-year quarter. Also, the company’s revenue is expected to increase 47.7% to $921.66 million in the first quarter.
Let’s take a deeper look at these two ETFs.
Ark Fintech Innovation ETF
The ARKK ETF is an actively managed fund that seeks long-term capital growth. It is managed by renowned investor Cathie Wood and offers exposure to companies driving innovation in financial technology with blockchain, digital wallets, payment systems, and AI-driven financial solutions.
HOOD stock constitutes 6.46% of the ETF’s holdings. Apart from HOOD, some of the top stocks in the ARKF ETF are Shopify (SHOP), Coinbase (COIN), and Palantir (PLTR). Overall, the ETF has $810.13 million in assets under management (AUM). Also, it has an expense ratio of 0.75%. The ARKF ETF has returned 9.74% in the past six months.
Turning to Wall Street, the ETF has a Moderate Buy consensus rating. Of the 39 stocks held, 29 have Buys and 10 have a Hold rating. At $42.98, the average ARKF ETF price target implies a 20.96% upside potential.
First Trust SkyBridge Crypto Industry and Digital Economy ETF
The CRPT ETF focuses on companies involved in the cryptocurrency and digital economy sectors. It invests in businesses engaged in blockchain technology and digital asset mining. The ETF is actively managed and aims to capture growth opportunities in the changing digital economy. Importantly, Robinhood stock accounts for 4.71% of CRPT’s total holdings.
Some of the top holdings in CRPT ETF include Strategy (MSTR), Marathon (MARA), and CleanSpark (CLSK). Overall, the ETF has $77.11 million in AUM. Also, it has an expense ratio of 0.85%. The CRPT ETF has gained 2.65% in the past six months.
Turning to Wall Street, the ETF has a Moderate Buy consensus rating. Of the 24 stocks held, 16 have Buys, seven have a Hold rating, and one has a Sell. At $21.44, the average CRPT ETF price target implies a 45.83% upside potential.
Concluding Thoughts
ETFs provide a diversified way to invest in Robinhood, reducing risk compared to investing directly in the stock. Furthermore, ETFs are a low-cost, liquid, and transparent way to participate in the market. Investors seeking ETF recommendations might consider CRPT and ARKF, as these ETFs offer significant exposure to HOOD stock.