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Written by Sam Pennington on March 24, 2023
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What Is A Good Annualized Return On Robinhood?

Investing on Robinhood can be a great way to grow your wealth over time, but how do you know what a good return on your investment is?

Many investors look to benchmark their performance against the broader stock market, specifically the S&P 500, which is a commonly used gauge of the overall health of the U.S. stock market.

Limited Time: Robinhood 1% Transfer Bonus

If you transfer an existing brokerage account to Robinhood through December 8th, 2023, you can get an Unlimited 1% Transfer Bonus.

Robinhood Transfer Bonus

For example, if you transferred a brokerage account worth $50,000 - that would be a bonus of $500.

In addition, Robinhood offers a free stock for new users as well as a 1% IRA match for retirement accounts.

Robinhood Return vs S&P 500

In 2022, the S&P 500 returned -19.64%.

This means that if you invested in the S&P 500 at the beginning of the year and held onto it through the end of the year, you would have experienced a loss of nearly 20%.

So, if you earned a return of -19.63% or better on Robinhood, you would have outperformed the market.

However, it's important to note that simply beating the market isn't necessarily indicative of a good return. What's considered a good return can vary depending on your investment goals, risk tolerance, and other factors.

Your Financial Goals

Generally speaking, a good return on Robinhood would be one that meets or exceeds your personal financial goals and expectations.

For example, if you're a conservative investor who is primarily interested in steady, low-risk returns, a good return on Robinhood might be one that beats inflation and keeps your money growing at a steady pace.

On the other hand, if you're a more aggressive investor who is comfortable taking on more risk, a good return might be one that outperforms the market by a significant margin.

Ultimately, the definition of a good return on Robinhood is a highly individualized one that depends on a wide range of factors.

That said, benchmarking your performance against the S&P 500 can be a useful starting point for assessing your overall investment performance and determining whether you're on track to meet your financial goals.

Don't forget to grab your free stock worth up to $200 from Robinhood today!

Article written by Sam Pennington
Sam is a personal finance writer. While in college, he dedicated his spare time to learning about personal finance, investing, and real estate. Sam currently works as a business analyst for one of the top food manufacturers in the world.

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Power Your Investing

Choosing the right product and service is essential for your investing. Here are some of the tools and services to help your portfolio grow.
Robinhood
Robinhood provides an easy-to-use free trading platform for beginner investors. Robinhood has $0 account minimums. Get a free stock when you open an account below.
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M1 Finance
M1 Finance offers a free investing platform where users can build portfolios of stocks and ETFs. Users can also choose from a variety of pre-built portfolios offered for free.
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Fundrise
Passively invest in private real estate deals with as little as $10. Fundrise allows you to own residential and commercial real estate across the U.S. starting at a 1% annual fee.
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