Robinhood’s (HOOD) growth prospects are encouraging following its inclusion in the S&P 500 Index (SPX), a milestone that has already driven its stock up over 16%. The company has seen a 28% jump in new customer acquisition and posted strong financials recently. Further, analysts see its expanding product offerings, including crypto trading and retirement accounts, and its low-cost operating model as key growth drivers. Thus, this might be the right time to consider HOOD stock, especially through exchange-traded funds (ETFs) that offer diversified exposure without the risk of holding the stock directly.
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Investors seeking exposure to Robinhood stock may consider the Ark Fintech Innovation ETF (ARKF) and the AOT Growth and Innovation ETF (AOTG). Let’s take a deeper look at these two ETFs.
Ark Fintech Innovation ETF
The ARKF ETF is an active fund managed by renowned investor Cathie Wood. It offers exposure to companies driving innovation in financial technology with blockchain, digital wallets, payment systems, and AI-driven financial solutions.
HOOD stock constitutes 7% of the ETF’s holdings. Apart from HOOD, some of the top stocks in the ARKF ETF are Shopify (SHOP), Coinbase (COIN), and Roblox (RBLX). Overall, the ETF has $1.33 billion in assets under management (AUM). Also, it has an expense ratio of 0.75%. The ARKF ETF has returned 62.9% in the past six months.
Turning to Wall Street, the ETF has a Moderate Buy consensus rating. Of the 43 stocks held, 32 have Buys ratings and 11 have Hold ratings. At $60.54, the average ARKF ETF price target implies a 11.62% upside potential.
AOT Growth and Innovation ETF
The AOTG ETF is an actively managed fund launched by Alpha Architect in 2022. It invests in high-growth U.S. companies with low marginal cost structures. Importantly, Robinhood stock accounts for 4.85% of AOTG’s total holdings.
Some of the top holdings in AOTG ETF include Nvidia (NVDA), Toast (TOST), and Advanced Micro Devices (AMD). Overall, the ETF has $60.03 million in AUM. Also, it has an expense ratio of 0.75%. The AOTG ETF has gained 34.74% in the past six months.
Turning to Wall Street, the ETF has a Strong Buy consensus rating. Of the 48 stocks held, 41 have Buy ratings and seven have Hold ratings. At $61.02, the average AOTG ETF price target implies a 15.41% 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 AOTG and ARKF, as these ETFs offer significant exposure to HOOD stock.