Robinhood Introduces Investor Index to Track Customers’ Top 100 Stocks

Robinhood, a major US commission-free stock trading and investing app, on Friday launched the Robinhood Investor Index to track the top 100 stocks its users are investing in.

The Index, which is based on data on the stock holdings or positions of the firm’s 20 million+ funded customer accounts, will be updated once a month.

“Over the last several years, we’ve seen our customers—and millions more like them—play an increasingly important role in the market. With the launch of the Robinhood Investor Index, we’re giving customers, and the world, a look at everyday investor positioning and performance on Robinhood,” Robinhood explained in a statement published on Friday.

Robinhood noted that unlike many other indices, its new investor index is not “weighted by dollars but by conviction.”

“We measure a customer’s conviction for each investment by looking at the percentage it makes up of their portfolio,” the US trading app operator noted.

Robinhood further explained, “And to ensure that all customers are equally represented, we average conviction for each investment across all customers, whether they have $20 or $20 million in their account.

“Our data tells us that Robinhood customers invest in the companies they’re passionate about, and the Robinhood Investor Index aims to make their voices heard.”

Recent Launches

The introduction of the Robinhood Investor Index comes over a month after the stock trading and investment firm introduced options trading for its cash account holders.

Robinhood’s advanced customers previously could only trade stocks and exchange-traded funds.

Earlier in May, Robinhood also introduced a stock lending programme to promote a ‘democratized approach’ to paid securities lending on its platform.

With the programme, Robinhood explained, a customer could lend out fully-paid stocks in their portfolio by enabling the Stock Lending feature.

Through Robinhood’s in-app dashboard, customers can track earnings, see their positions, and enable or disable Stock Lending at any time, Finance Magnates reported.

Meanwhile, in May, Robinhood disclosed its plans to release a non-custodial wallet by the end of this year.

The wallet, which is to be introduced as a standalone app, is being designed to give Robinhood’s customers total control of their cryptocurrency in Web3.

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