We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ETFs to Watch as HOOD Shares Fall 7% Following Q4 Revenue Miss
Read MoreHide Full Article
Key Takeaways
Robinhood Markets fell 7% after Q4 revenues missed estimates despite an earnings beat.
HOOD posted 68% growth in Platform Assets and a 58% rise in Gold subscribers to 4.2M.
ETFs like CRPT offer exposure to HOOD while reducing single-stock risk.
Shares of Robinhood Markets (HOOD - Free Report) lost 7% in the after-hours trading session yesterday (as cited in Yahoo Finance), following the company’s fourth-quarter 2025 revenue miss. The trading platform comfortably surpassed the quarterly earnings estimates.
For investors, the recent share price slump may present an attractive entry point into HOOD, as the company seeks to transform itself into a global financial super-app. Robinhood accelerates momentum among active traders by expanding its product offerings, led by Prediction Markets, with more than 12 billion event contracts traded in 2025. HOOD continues to advance its global financial innovation strategy through expansion into new markets and the rollout of international products, including the recent launch of ISAs in the United Kingdom.
However, direct investment in HOOD bears significant regulatory risk, as potential crackdowns on Payment for Order Flow (PFOF) or crypto-staking could dismantle its "commission-free" model. The stock is highly sensitive to retail sentiment cycles, as cooling enthusiasm for AI or crypto often triggers disproportionate declines in user activity and revenues.
Therefore, for investors looking to capitalize on this recent dip without being fully exposed to the unique single-stock volatility and company-specific challenges that could severely impact HOOD’s share price at any point of time, a more prudent strategy could be to invest in Exchange-Traded Funds (ETFs) with significant exposure to this fintech company. This approach allows investors to capture the potential upside of HOOD and other industry leaders while mitigating company-specific risks arising from sector-specific challenges or geopolitical factors.
But before diving straight into these ETFs, let us check HOOD’s overall performance in the fourth quarter in terms of other metrics.
A Brief Analysis of HOOD’s Q4 Results
HOOD’s fourth-quarter earnings beat the Zacks Consensus Estimate by 4.8%. Revenues missed the consensus mark by 4%. However, on a year-over-year basis, the company registered double-digit growth in revenues.
Its total Platform Assets increased 68%, driven by continued Net Deposits, acquired assets, and higher equity valuations. Robinhood Gold Subscribers rose 58% year over year to 4.2 million.
The company’s interest-earning assets went up 39%, driven by strong growth in the cash sweep program, margin and HOOD’s credit card loan book as the company steadily won larger customers and deepened relationships with the existing ones.
HOOD’s business reflected notable diversification. At the end of 2025, it had up to 11 businesses with more than $100 million in annualized revenues. Several other businesses are currently in progress, including Robinhood Legend and the Gold Card, with the latter on track for launch this year.
Robinhood plans to accelerate product velocity further in 2026 and aims to deliver another year of 20%-plus net deposit growth. The company also expects its Robinhood Social business to begin rolling out to initial customers in the near term.
Beyond 2026, the trading platform remains on track to exceed $1 trillion in assets, supported by rapid product velocity and the $100 trillion-plus generational wealth transfer (already underway).
HOOD-Heavy ETFs to Buy
First Trust SkyBridge Crypto Industry and Digital Economy ETF (CRPT - Free Report)
This fund, with net assets worth $98.4 million, offers exposure to 21 Bitcoin Exchange-Traded Products, and Digital Economy Companies. Of these, HOOD carries the fifth spot, holding 7.39% of the fund.
This fund charges 85 basis points (bps) as fees. It traded at a volume of 0.18 million shares in the last trading session.
This fund, with net assets worth $1.1 billion, offers exposure to 35-55 companies that are engaged in the Fund’s investment themes of blockchain and financial technology (“Fintech”) innovation. Of these, HOOD carries the seventh spot, holding 4.20% of the fund.
This fund charges 75 bps as fees. It traded at a volume of 0.15 million shares in the last trading session.
This fund, with net assets worth $6.98 billion, offers exposure to companies that rely on or benefit from the development of new products or services, technological improvements and advancements in scientific research. Of these, HOOD carries the seventh spot, holding 3.95% of the fund.
This fund charges 75 bps as fees. It traded at a volume of 7.05 million shares in the last trading session.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
ETFs to Watch as HOOD Shares Fall 7% Following Q4 Revenue Miss
Key Takeaways
Shares of Robinhood Markets (HOOD - Free Report) lost 7% in the after-hours trading session yesterday (as cited in Yahoo Finance), following the company’s fourth-quarter 2025 revenue miss. The trading platform comfortably surpassed the quarterly earnings estimates.
For investors, the recent share price slump may present an attractive entry point into HOOD, as the company seeks to transform itself into a global financial super-app. Robinhood accelerates momentum among active traders by expanding its product offerings, led by Prediction Markets, with more than 12 billion event contracts traded in 2025. HOOD continues to advance its global financial innovation strategy through expansion into new markets and the rollout of international products, including the recent launch of ISAs in the United Kingdom.
However, direct investment in HOOD bears significant regulatory risk, as potential crackdowns on Payment for Order Flow (PFOF) or crypto-staking could dismantle its "commission-free" model. The stock is highly sensitive to retail sentiment cycles, as cooling enthusiasm for AI or crypto often triggers disproportionate declines in user activity and revenues.
Therefore, for investors looking to capitalize on this recent dip without being fully exposed to the unique single-stock volatility and company-specific challenges that could severely impact HOOD’s share price at any point of time, a more prudent strategy could be to invest in Exchange-Traded Funds (ETFs) with significant exposure to this fintech company. This approach allows investors to capture the potential upside of HOOD and other industry leaders while mitigating company-specific risks arising from sector-specific challenges or geopolitical factors.
But before diving straight into these ETFs, let us check HOOD’s overall performance in the fourth quarter in terms of other metrics.
A Brief Analysis of HOOD’s Q4 Results
HOOD’s fourth-quarter earnings beat the Zacks Consensus Estimate by 4.8%. Revenues missed the consensus mark by 4%. However, on a year-over-year basis, the company registered double-digit growth in revenues.
Its total Platform Assets increased 68%, driven by continued Net Deposits, acquired assets, and higher equity valuations. Robinhood Gold Subscribers rose 58% year over year to 4.2 million.
The company’s interest-earning assets went up 39%, driven by strong growth in the cash sweep program, margin and HOOD’s credit card loan book as the company steadily won larger customers and deepened relationships with the existing ones.
HOOD’s business reflected notable diversification. At the end of 2025, it had up to 11 businesses with more than $100 million in annualized revenues. Several other businesses are currently in progress, including Robinhood Legend and the Gold Card, with the latter on track for launch this year.
Robinhood plans to accelerate product velocity further in 2026 and aims to deliver another year of 20%-plus net deposit growth. The company also expects its Robinhood Social business to begin rolling out to initial customers in the near term.
Beyond 2026, the trading platform remains on track to exceed $1 trillion in assets, supported by rapid product velocity and the $100 trillion-plus generational wealth transfer (already underway).
HOOD-Heavy ETFs to Buy
First Trust SkyBridge Crypto Industry and Digital Economy ETF (CRPT - Free Report)
This fund, with net assets worth $98.4 million, offers exposure to 21 Bitcoin Exchange-Traded Products, and Digital Economy Companies. Of these, HOOD carries the fifth spot, holding 7.39% of the fund.
This fund charges 85 basis points (bps) as fees. It traded at a volume of 0.18 million shares in the last trading session.
ARK Blockchain & Fintech Innovation ETF (ARKF - Free Report)
This fund, with net assets worth $1.1 billion, offers exposure to 35-55 companies that are engaged in the Fund’s investment themes of blockchain and financial technology (“Fintech”) innovation. Of these, HOOD carries the seventh spot, holding 4.20% of the fund.
This fund charges 75 bps as fees. It traded at a volume of 0.15 million shares in the last trading session.
ARK Innovation ETF (ARKK - Free Report)
This fund, with net assets worth $6.98 billion, offers exposure to companies that rely on or benefit from the development of new products or services, technological improvements and advancements in scientific research. Of these, HOOD carries the seventh spot, holding 3.95% of the fund.
This fund charges 75 bps as fees. It traded at a volume of 7.05 million shares in the last trading session.