Can you buy Bonds on Robinhood?

What is Bonds: A bond is administered by the government or company, or institution instead of cash. It operates just like stock and trades in financial markets. One who borrows is the company that grants bonds and the buyer is the lender one who invests.

Robinhood does not support bonds like other platforms.

How to buy Bonds on Robinhood

As you know Robinhood does not finance bonds, there are assets supported by it.

  • The U.S. listed Stocks and ETFs
  • ADRs among 650 Globally-Listed Companies
  • Options Contracts for ETFs and U.S. Exchange-Listed Stocks

Using a Robinhood brokerage account, one can earn money from the assets.

How to Invest in Bonds on Robinhood

Purchases of US Treasury Bonds can be performed as the US issues the bonds. You can visit the website of the department TreasuryDirect.gov. or head to the firm to buy bonds. Therefore, you can have ETFs or mutual funds in order to subsidize bonds.

Best Bond ETFs on Robinhood

  • Fidelity Total Bond ETF
  • Vanguard Tax-Exempt Bond ETF
  • iShares TIPS Bond ETF
  • Vanguard Ultra-Short-Term Bond Fund
  • VanEck Emerging Markets High Yield Bond ETF

Bond ETFs are not sure to receive their money back as ETFs do not mature nor deliver the same protection for the initial investment as normal bonds do. There is also risk compared to individual bonds.

Municipal Bonds on Robinhood

  • BlackRock Allocation Target Shares Series E (BATEX)
  • JPMorgan Tax Aware Real Return Fund Class A (TXRAX)
  • Delaware National High Yield Municipal Bond Fund Institutional Class (DVHIX)
  • Transamerica High Yield Muni I2 (THYTX)
  • BlackRock High Yield Municipal Fund Investor A Shares (MDYHX)

Best Bonds to buy on Robinhood

  • Savings Bonds,
  • Treasury bills,
  • Banking Instruments, and
  • U.S. Treasury notes

Robinhood platform is utilized for stock trading, not for investment in bonds.

You need to check which bonds offer the highest return. As per the reports, Corporate bonds manage to spend increased earnings than Treasury bonds. This is so as Corporate Bonds retain default risk, and Treasuries are warranted if they are carried to maturity.

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