Robinhood Investors Are Playing With Fire With Their 3 Favorite ETFs
The Robinhood investing app has taken the world by storm, attracting millions of people to start putting some money directly into the stock market. It's great news that so many Americans who had never invested before are dipping their toes in now. However, some of the choices that these new investors are making seem questionable at best, and some of the most popular Robinhood stocks are extremely risky.
Many investors who want to get greater diversification and reduce their risks do so by buying exchange-traded funds rather than solely picking individual stocks. Many of these funds are built to match major market indexes or reflect the moves of whole industries.
However, even among these diversified ETFs, there are those that can be just as speculative and risky as some individual companies stocks. If you look at the three most popular ETFs on Robinhood right now, you'll quickly see the extent to which many users of the app are making bets on a single momentum-based trend -- and leaving themselves exposed to significant losses if that trend doesn't continue.
Source Fool.com
