By 
Tech companies, electric-vehicle makers and some meme stocks are part of the aggregate mix of equities inside the portfolios of Robinhood users, according to a new index from the brokerage app geared at new investors.
These are stocks like Amazon
AMZN,
+2.66%,
Microsoft
MSFT,
+2.30%,
Tesla
TSLA,
+3.60%,
Apple
AAPL,
+1.88%,
Ford Motor Company
F,
-0.32%
and Disney
DIS,
+2.54%.
It’s also Nio
NIO,
+8.37%,
GameStop
GME,
+11.96%
and shares of AMC Entertainment Holdings’
AMC,
+12.50%
preferred equity units
APE,
+8.22%.
It all shows Robinhood users are buying — and holding onto — companies “they know, understand and believe in for the long-term,” the company said in a Friday morning announcement unveiling the Robinhood Investor Index.
“The Index captures how our customers are investing based on the top 100 most owned stocks on Robinhood,” the company said in a statement.
“Unlike most other indices, it isn’t 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,” Robinhood added.
“‘Unlike most other indices, it isn’t 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.’”
— Robinhood Investor Index
“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,” it added.
“The index does not reflect the positions or performance of any one individual investor, but rather it is an aggregate view of what our customers are investing in on a relative basis,” Robinhood said, noting that it will update the index monthly. (The index does not include exchange-traded funds or cryptocurrency.)
As institutional and retail investors grapple with volatile stock markets and assess the chance of a recession, Robinhood is hoping there can be value in users seeing where others are putting their money.
For all of 2021, the 100 most broadly held stocks for Robinhood users beat the overall performance of the Nasdaq Composite, and now the two are essentially on par, according to Robinhood’s data.
The Nasdaq
COMP,
+2.11%
is down nearly 23% year to date. The Dow Jones Industrial Average
DJIA,
+1.19%
is down almost 12% and the S&P 500
SPX,
+1.53%
is off by 15% in that period.
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