# How Robinhood Markets (HOOD) compares with the whole market and its popular alternatives

> Source: EasyCompare research, https://easycompare.io/research/hood
> Data as of October 20, 2026. Total returns include reinvested dividends. Past performance does not predict future results; nothing here is investment advice.

Built by QuantCommons' quantitative engine, this page is about relative opportunity, not data on HOOD alone. It places HOOD (Robinhood Markets, Inc.) against 20+ popular alternatives, its neighboring categories and the entire market of over 10,000 U.S.-listed stocks and ETFs, and surfaces what has done better on consistent outperformance, return for the risk taken, behavior in real market crashes and diversification. The result is a clearer view of where HOOD stands in the market, and of the alternatives worth a closer look.

Period covered: HOOD's full trading record, from July 2021 through September 2026. The crash tests reach back to 2000 using older funds and the S&P 500. All returns include reinvested dividends. Data as of October 20, 2026.

## Key findings

- **Right now:** HOOD is 35.6% below its high, bear-market territory, while the S&P 500 sits 1.3% below a record. Not every peer went the same way. Over the past 3 months, FUTU rose 7.4% and GS (Goldman Sachs Group) fell 15.7%.
- **Stock or market?:** HOOD fell 1.1% over the past 3 months, 4.8 points ahead of the investment banking & brokerage ETF IAI (iShares U.S. Broker-Dealers & Securities Exchanges ETF), which fell 5.9%. The S&P 500 rose 3.9%. Its investment banking & brokerage peers did not move as one over the past 3 months: FUTU rose 7.4%, while GS (Goldman Sachs Group) fell 15.7%.
- **Past 1 to 3 years:** Over the past year, HOOD fell 27.7% while the S&P 500 rose 15.8%. Even so, HOOD finished ahead of the S&P 500 in both 2024 and 2025.
- **Long term:** HOOD turned $10,000 into $23,500 over the past 5 years, against $18,200 in the S&P 500. HOOD's 5-year return of 135% puts it ahead of 82% of the stocks worth at least $300 million with that much history. The S&P 500 returned 81.7%.
- **In a crash:** In the 2022 bear market, HOOD fell 60.4%, against 24.5% for the S&P 500. That was more than MS (Morgan Stanley, 32.4%) but less than COIN (Coinbase Global, 81.2%).
- **Diversification:** Against the S&P 500, HOOD has a correlation of 0.50 over 5 years, more closely than 74% of stocks worth at least $300 million. Next to an index fund it is some diversification, but not a hedge.
- **Better options**
  - **Popular alternatives:** IBKR (Interactive Brokers Group), GS (Goldman Sachs Group) and CBOE (Cboe Global Markets) earned more than HOOD with less volatility over the past 5 years. IBKR returned 35.4% a year at 35.4% volatility, against 18.6% a year at 68.6%.
  - **Nearby categories and themes:** HSBC (banks) and MUFG (Mitsubishi UFJ Financial Group, banks) earned more than HOOD with less volatility over the past 5 years. HSBC returned 33.1% a year at 25.9% volatility, against 18.6% a year at 68.6%.
  - **Whole market:** 417 of the 3,633 stocks and funds worth at least $500 million earned more than HOOD with less volatility over the past 5 years, among them NVDA (NVIDIA), TSM (Taiwan Semiconductor Manufacturing) and AVGO (Broadcom).

## How much would $10,000 in HOOD have grown?

This chart tracks a hypothetical $10,000 investment in HOOD over the past 5 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of HOOD over the same span and HOOD's popular alternatives, among those that traded for the entire period.

- $10,000 invested in HOOD at the end of September 2021 would have grown to $26,734 by September 2026, more than the $19,000 it would have become in SPY, an S&P 500 fund.
- Seven of the eight other investments on the chart ended ahead of HOOD, and BBVA finished highest, at $57,750.

## HOOD at a glance

This section summarizes the key facts about the stock, its returns over periods from one to ten years and the risk it has carried, with dividends reinvested throughout.

- HOOD is still 35.6% below its all-time high.
- HOOD's deepest decline since it began trading in 2021 was 90.2%, from August 2021 to June 2022. It took about three years from the low to climb back to its old high.
- Over four full calendar years, HOOD's best was 2025, when it returned 204%, and its worst was 2022, when it lost 54.2%. It lost money in one of those years.

- Type: Stock, Financials (Financial - Capital Markets)
- Trading since: July 29, 2021
- Market value: $78B
- Volatility (5 years): 68.6%; Sharpe ratio: 0.59
- Worst decline ever: −90.2%, from August 4, 2021 to June 16, 2022; back at its high by June 3, 2025

| Period | HOOD total return |
| --- | --- |
| 1 month | −20.3% |
| 3 months | −1.1% |
| 6 months | +7.6% |
| year to date | −14.8% |
| 1 year | −27.7% |
| 3 years | +976% |
| 5 years | +135% |

## HOOD against the whole market

Where HOOD ranks among every stock and fund, and what across the market has done better.

### How does HOOD rank among all stocks?

This section ranks HOOD on return, volatility, risk-adjusted return and worst decline against every stock worth at least $300 million with enough history.

- HOOD's 3-year return ranks in the top 1% of the 3,017 stocks worth at least $300 million with 3 years of history.
- HOOD is among the more volatile stocks: its price swings rank in the bottom 14% of the 2,893 stocks worth at least $300 million, where the top is the calmest.

| Measure | HOOD | Rank |
| --- | --- | --- |
| 1-year return | −27.7% | 2,806 of 3,287 (top 86%) |
| 3-year return | +976% | 30 of 3,017 (top 1%) |
| 5-year return | +135% | 508 of 2,893 (top 18%) |
| Volatility, 5 years | 68.6% | 2,477 of 2,893 (top 86%) |
| Sharpe ratio, 5 years | 0.59 | 702 of 2,893 (top 25%) |

### What has beaten HOOD on both return and risk?

Each dot is an investment, placed by how much it earned a year over the past 5 years (higher is better) and how much its price swung, its volatility (further left is calmer).

- 386 stocks and 31 ETFs worth at least $500 million sit in the green region: each earned more than HOOD over the past 5 years with smaller price swings. That is 11% of the 3,633 screened.
- Among those with at least half HOOD's swings, CLS has the best return for its risk: 101% a year at 59.7% volatility, 13% less than HOOD's 68.6%, and a Sharpe ratio (return above cash per unit of volatility) of 1.47 against 0.59 for HOOD.
- Among HOOD's popular alternatives, IBKR, CBOE and GS are in the region. IBKR earned 35.4% a year against 18.6% a year for HOOD, at 35.4% volatility, 48% less than HOOD's 68.6%.

### Is there a better investment than HOOD?

The table below lists investments that beat HOOD over the past 5 years on at least one of these measures: a higher annual return with lower volatility, a higher annual return at similar volatility, a similar return with lower volatility, a higher Sharpe ratio with a smaller worst decline, a higher total return in most periods from 3 months to 10 years, or smaller losses in recent market crashes.

- Among HOOD's popular alternatives, IBKR, GS and CBOE earned more than HOOD with less volatility over the past 5 years. IBKR returned 35.4% a year at 35.4% volatility, against 18.6% a year at 68.6%.
- Looking beyond its popular alternatives, HSBC (banks) and MUFG (banks) earned more than HOOD with less volatility over the past 5 years. HSBC returned 33.1% a year at 25.9% volatility, against 18.6% a year at 68.6%.
- Across the whole market, 417 of the 3,633 stocks and funds worth at least $500 million earned more than HOOD with less volatility over the past 5 years, among them NVDA, TSM and AVGO.

The 15 strongest of 417 investments that beat HOOD over the past 5 years, out of 3,633 stocks and funds worth at least $500 million.

| Investment | Group | Annual return (5 years) | Volatility | Sharpe | Worst decline (10 years) | 5Y return | Correlation with HOOD | Better on |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| HOOD: Robinhood Markets, Inc. (this page) |  | +18.6% | 68.6% | 0.59 | −90.2% | +135% |  |  |
| [MU](https://easycompare.io/research/mu): Micron Technology, Inc. | Semiconductors | +68.1% | 57.1% | 1.20 | −57.6% | +1,244% | 0.36 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [LITE](https://easycompare.io/research/lite): Lumentum Holdings Inc. | Communications Equipment | +57.3% | 64.5% | 1.03 | −66.9% | +863% | 0.18 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [MPC](https://easycompare.io/research/mpc): Marathon Petroleum Corporation | Oil & Gas | +51.2% | 33.4% | 1.41 | −79.7% | +690% | 0.16 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| [PBR-A](https://easycompare.io/research/pbr-a): Petróleo Brasileiro S.A. - Petrobras | Integrated Oil & Gas | +51.8% | 37.5% | 1.31 | −71.7% | +705% | -0.10 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| [NVDA](https://easycompare.io/research/nvda): NVIDIA Corporation | Semiconductors | +58.0% | 51.9% | 1.14 | −66.3% | +884% | 0.36 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| [HWM](https://easycompare.io/research/hwm): Howmet Aerospace Inc. | Aerospace & Defense | +47.3% | 32.5% | 1.36 | −68.9% | +594% | 0.34 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| [CAH](https://easycompare.io/research/cah): Cardinal Health, Inc. | Health Care Distribution | +42.1% | 24.7% | 1.55 | −46.1% | +479% | 0.10 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| [FIX](https://easycompare.io/research/fix): Comfort Systems USA, Inc. | Engineering & Construction | +77.0% | 46.7% | 1.46 | −49.7% | +1,636% | 0.38 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| [MPLX](https://easycompare.io/research/mplx): MPLX Lp | Oil & Gas Midstream | +23.5% | 18.8% | 1.22 | −75.2% | +187% | 0.22 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| [CLS](https://easycompare.io/research/cls): Celestica Inc. | Electronics Manufacturing | +101% | 59.7% | 1.47 | −80.6% | +3,143% | 0.52 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| [AVGO](https://easycompare.io/research/avgo): Broadcom Inc. | Semiconductors | +48.3% | 44.5% | 1.11 | −48.3% | +617% | 0.23 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| [TSM](https://easycompare.io/research/tsm): Taiwan Semiconductor Manufacturing Company Limited | Semiconductors | +31.5% | 38.5% | 0.91 | −56.6% | +293% | 0.32 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| [LLY](https://easycompare.io/research/lly): Eli Lilly and Company | Pharmaceuticals | +40.7% | 32.8% | 1.21 | −34.5% | +451% | 0.00 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| ATI: ATI Inc. | Metals & Mining | +61.8% | 42.9% | 1.34 | −82.4% | +1,008% | 0.23 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| [WMT](https://easycompare.io/research/wmt): Walmart Inc. | Discount Retail | +20.8% | 22.6% | 0.96 | −25.7% | +158% | 0.25 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |

## HOOD against its popular alternatives

The investments people most often weigh against HOOD, compared period by period and year by year.

### How do HOOD's risk and return compare with its alternatives?

This map plots each investment's annual return over the past 5 years against its volatility, the size of its typical price swings.

- Four of the 18 popular alternatives, led by IBKR, CBOE and VIRT, were both more rewarding and calmer than HOOD over the past 5 years, earning a higher annual return with lower volatility.
- Over the past 5 years, HOOD returned 18.6% a year, more than the S&P 500's 12.7%, with higher volatility (68.6% against 17.1%).

### Has HOOD consistently beaten its popular alternatives?

This section compares HOOD with the investments people most often weigh against it, checking each one over seven periods from one month to five years.

- None of the 21 popular alternatives outperformed HOOD in at least 3 of 5 short-term and 2 of 2 long-term timeframes. The closest was VIRT.
- IBKR, CBOE and GS earned more for the risk they took than HOOD (a higher Sharpe ratio) and fell less in their worst decline of the past 10 years.

| Investment | 1Y return | 3Y return | 5Y return | Periods ahead of HOOD | Verdict | Sharpe |
| --- | --- | --- | --- | --- | --- | --- |
| HOOD: Robinhood Markets, Inc. (this page) | −27.7% | +976% | +135% |  |  | 0.59 |
| VIRT: Virtu Financial, Inc. | +76.5% | +243% | +158% | 5/5 short-term, 1/2 long-term |  | 0.73 |
| CBOE: Cboe Global Markets, Inc. | +34.2% | +101% | +165% | 4/5 short-term, 1/2 long-term |  | 0.91 |
| [IBKR](https://easycompare.io/research/ibkr): Interactive Brokers Group, Inc. | +24.4% | +320% | +355% | 3/5 short-term, 1/2 long-term |  | 1.04 |
| [GS](https://easycompare.io/research/gs): The Goldman Sachs Group, Inc. | +18.2% | +215% | +145% | 3/5 short-term, 1/2 long-term |  | 0.77 |
| [NDAQ](https://easycompare.io/research/ndaq): Nasdaq, Inc. | +8.1% | +95.1% | +52.9% | 5/5 short-term, 0/2 long-term |  | 0.47 |
| [PYPL](https://easycompare.io/research/pypl): PayPal Holdings, Inc. | −16.5% | +8.2% | −77.6% | 5/5 short-term, 0/2 long-term |  | -0.47 |
| [CME](https://easycompare.io/research/cme): CME Group Inc. | +14.6% | +57.7% | +70.1% | 4/5 short-term, 0/2 long-term |  | 0.62 |
| [IBIT](https://easycompare.io/research/ibit): iShares Bitcoin Trust ETF | −25.8% | — | — | 4/5 short-term, 0/2 long-term |  | — |
| OPY: Oppenheimer Holdings Inc. | +50.8% | +201% | +121% | 3/5 short-term, 0/2 long-term |  | 0.64 |
| [MS](https://easycompare.io/research/ms): Morgan Stanley | +13.9% | +170% | +110% | 3/5 short-term, 0/2 long-term |  | 0.66 |
| LPLA: LPL Financial Holdings Inc. | −4.9% | +47.1% | +88.9% | 3/5 short-term, 0/2 long-term |  | 0.54 |
| RJF: Raymond James Financial, Inc. | −4.5% | +69.5% | +64.2% | 3/5 short-term, 0/2 long-term |  | 0.50 |
| [SCHW](https://easycompare.io/research/schw): The Charles Schwab Corporation | −3.1% | +86.2% | +19.1% | 3/5 short-term, 0/2 long-term |  | 0.27 |
| FUTU: Futu Holdings Limited | −36.1% | +89.7% | +63.7% | 2/5 short-term, 0/2 long-term |  | 0.49 |
| SF: Stifel Financial Corp | −9.0% | +86.5% | +49.5% | 2/5 short-term, 0/2 long-term |  | 0.41 |
| JEF: Jefferies Financial Group Inc. | −14.2% | +51.7% | +30.3% | 2/5 short-term, 0/2 long-term |  | 0.33 |
| [COIN](https://easycompare.io/research/coin): Coinbase Global, Inc. | −50.3% | +129% | −45.7% | 2/5 short-term, 0/2 long-term |  | 0.29 |
| SOFI: SoFi Technologies, Inc. | −48.8% | +99.2% | −30.3% | 1/5 short-term, 0/2 long-term |  | 0.21 |
| TIGR: UP Fintech Holding Ltd. Sponsored ADR Class A | −58.6% | −9.7% | −50.5% | 1/5 short-term, 0/2 long-term |  | 0.21 |
| ETOR: eToro Group Ltd. | −38.3% | — | — | 1/5 short-term, 0/2 long-term |  | — |
| BULL: Webull Corporation Class A Ordinary Shares | −47.5% | −43.9% | — | 0/5 short-term, 0/2 long-term |  | — |

### How did HOOD do year by year?

This table shows each investment's total return in every full calendar year since 2022, along with where HOOD ranked among its popular alternatives each year.

- HOOD finished ahead of the S&P 500 in three of its four full calendar years, and ahead of it in each of the last three.
- Ranked against its popular alternatives each year, HOOD finished in the top quarter in three of four years and in the bottom quarter in one. In 2025, it ranked 1 of 21.
- None of the 18 popular alternatives came out ahead of HOOD in most of the years they have in common.

| Year | HOOD | SPY |
| --- | --- | --- |
| 2025 | +204% | +17.7% |
| 2024 | +192% | +24.9% |
| 2023 | +56.5% | +26.2% |
| 2022 | −54.2% | −18.2% |

## Risk and diversification

How HOOD has fallen, how it held up in crashes beside the S&P 500 and its popular alternatives, and what moves independently of it.

### What were HOOD's worst declines?

A drawdown is the decline from a peak to the lowest point before a new high.

- In all five of HOOD's worst declines, the S&P 500 held up better over the same dates.
- The slowest recovery came after HOOD fell 90.2% from August 2021 to June 2022; it did not regain that peak until June 2025, three years later.

| Decline | Peak | Low | Back at the high | SPY over the same dates | Market event |
| --- | --- | --- | --- | --- | --- |
| −90.2% | August 4, 2021 | June 16, 2022 | June 3, 2025 | −15.7% | 2022 bear market |
| −57.3% | October 9, 2025 | March 30, 2026 | not yet | −5.3% |  |
| −12.3% | August 18, 2025 | September 3, 2025 | September 8, 2025 | +0.1% |  |
| −9.0% | July 18, 2025 | August 1, 2025 | August 7, 2025 | −0.9% |  |
| −6.9% | July 2, 2025 | July 8, 2025 | July 10, 2025 | 0.0% |  |

### How did HOOD do in stock market crashes?

This section measures how far HOOD, the S&P 500 and each alternative fell from peak to trough during every major market crash since 2000.

- HOOD fell further than the S&P 500 in all two crashes it has traded through. The clearest case was the 2022 bear market, when HOOD fell 60.4% and the S&P 500 fell 24.5%.
- Among its popular alternatives, CBOE held up best, falling less than HOOD in all two crashes they both traded through.
- HOOD began trading after the 2008 financial crisis, but ten of its popular alternatives lived through it. The mildest fall among them was SF's 41.5%, against 55.2% for the S&P 500.

| Crash | Dates | HOOD fall | SPY fall |
| --- | --- | --- | --- |
| Dot-com bust | March 10, 2000 to October 9, 2002 | not trading | −47.5% |
| Global financial crisis | October 9, 2007 to March 9, 2009 | not trading | −55.2% |
| Flash crash | May 6, 2010 to May 7, 2010 | not trading | −1.5% |
| Euro debt crisis | July 22, 2011 to October 3, 2011 | not trading | −17.9% |
| China devaluation & oil rout | August 10, 2015 to February 11, 2016 | not trading | −12.8% |
| Volmageddon | February 2, 2018 to February 9, 2018 | not trading | −6.5% |
| Q4 2018 selloff | September 21, 2018 to December 24, 2018 | not trading | −19.3% |
| COVID crash | February 19, 2020 to March 23, 2020 | not trading | −33.7% |
| 2022 bear market | January 4, 2022 to October 12, 2022 | −60.4% | −24.5% |
| SVB / regional bank stress | March 8, 2023 to March 13, 2023 | −6.8% | −3.4% |

### How closely does HOOD move with the S&P 500?

Upside capture measures how much of the S&P 500's gains an investment kept in the months the market rose, and downside capture how much of its losses it took in the months the market fell.

- Ten of the 18 popular alternatives had a higher capture ratio (upside capture divided by downside capture) than HOOD's 0.86, led by VIRT, CME and LPLA.
- IBKR took just 100% of the S&P 500's losses, against 256% for HOOD, while still keeping 178% of its gains.
- Over the past 5 years, HOOD captured 220% of the S&P 500's gains in rising months and 256% of its losses in falling months, with a beta of 2.34. It amplified the market's moves in both directions.

Measured over the past 5 years of monthly returns against SPY.

| Investment | Upside capture | Downside capture | Beta |
| --- | --- | --- | --- |
| HOOD: Robinhood Markets, Inc. (this page) | 220% | 256% | 2.34 |
| VIRT: Virtu Financial, Inc. | 79.0% | 21.0% | 0.65 |
| CBOE: Cboe Global Markets, Inc. | 81.0% | 40.0% | 0.42 |
| [IBKR](https://easycompare.io/research/ibkr): Interactive Brokers Group, Inc. | 178% | 100% | 1.36 |
| [GS](https://easycompare.io/research/gs): The Goldman Sachs Group, Inc. | 150% | 144% | 1.29 |
| [NDAQ](https://easycompare.io/research/ndaq): Nasdaq, Inc. | 110% | 143% | 0.99 |
| [PYPL](https://easycompare.io/research/pypl): PayPal Holdings, Inc. | 47.0% | 273% | 1.27 |
| [CME](https://easycompare.io/research/cme): CME Group Inc. | 42.0% | 13.0% | 0.24 |
| OPY: Oppenheimer Holdings Inc. | 110% | 67.0% | 1.11 |
| [MS](https://easycompare.io/research/ms): Morgan Stanley | 134% | 137% | 1.22 |
| LPLA: LPL Financial Holdings Inc. | 64.0% | 30.0% | 0.54 |
| RJF: Raymond James Financial, Inc. | 92.0% | 90.0% | 0.93 |
| [SCHW](https://easycompare.io/research/schw): The Charles Schwab Corporation | 76.0% | 92.0% | 0.79 |
| FUTU: Futu Holdings Limited | 68.0% | 94.0% | 0.46 |
| SF: Stifel Financial Corp | 110% | 127% | 1.01 |
| JEF: Jefferies Financial Group Inc. | 159% | 226% | 1.58 |
| [COIN](https://easycompare.io/research/coin): Coinbase Global, Inc. | 187% | 339% | 3.40 |
| SOFI: SoFi Technologies, Inc. | 178% | 305% | 2.33 |
| TIGR: UP Fintech Holding Ltd. Sponsored ADR Class A | 7.0% | 117% | 0.43 |

### What diversifies HOOD?

Correlation measures how closely two investments move together, on a scale from 1 (in lockstep) through 0 (unrelated) to -1 (in opposite directions).

- Moving a fifth of the money in HOOD into GLD would have cut the portfolio's volatility by 20% over the past 5 years and raised its annual return (+21.7% for HOOD alone, +25.8% for the mix).
- Among large ETFs, LVHI, DXJ and EMLP have moved largely independently of HOOD over the past 5 years, with correlations of 0.24 or lower, and each still earned a positive 5-year return.
- In 2022, the one year HOOD lost money (-54.2%), MCK returned +51.8%.

| Investment | Correlation with HOOD | 5Y return | Volatility | Sharpe | Rose in HOOD's 1 down years |
| --- | --- | --- | --- | --- | --- |
| LVHI: Franklin International Low Volatility High Dividend Index ETF | 0.07 | +119% | 11.1% | 1.48 | 1 of 1 |
| DXJ: WisdomTree Japan Hedged Equity Fund | 0.16 | +225% | 19.1% | 1.34 | 1 of 1 |
| EMLP: First Trust North American Energy Infrastructure Fund | 0.24 | +101% | 14.5% | 1.04 | 1 of 1 |
| HDV: iShares Core High Dividend ETF | 0.09 | +83.3% | 13.0% | 1.00 | 1 of 1 |
| [SMH](https://easycompare.io/research/smh): VanEck Semiconductor ETF | 0.41 | +323% | 36.9% | 0.97 | 0 of 1 |
| DBEF: Xtrackers MSCI EAFE Hedged Equity ETF | 0.33 | +85.0% | 13.8% | 0.96 | 0 of 1 |
| [GLD](https://easycompare.io/research/gld): SPDR Gold Shares | -0.01 | +126% | 18.9% | 0.96 | 0 of 1 |
| FFLC: Fidelity Fundamental Large Cap Core ETF | 0.49 | +107% | 16.8% | 0.95 | 0 of 1 |

## Common questions

### What was HOOD's worst drawdown?

HOOD's deepest decline since it began trading in 2021 was 90.2%, from August 2021 to June 2022. It took about three years from the low to climb back to its old high. Because HOOD launched in July 2021, that record does not include the dot-com bust, the 2008 financial crisis or six other sell-offs.

### What were HOOD's best and worst years?

Over four full calendar years, HOOD's best year was 2025, when it returned 204%. Its worst was 2022, with a return of -54.2%.

### Is there a better investment than HOOD?

Among HOOD's popular alternatives, IBKR, GS and CBOE earned more than HOOD with less volatility over the past 5 years. IBKR returned 35.4% a year at 35.4% volatility, against 18.6% a year at 68.6%. Looking beyond its popular alternatives, HSBC (banks) and MUFG (banks) earned more than HOOD with less volatility over the past 5 years. HSBC returned 33.1% a year at 25.9% volatility, against 18.6% a year at 68.6%.

### Is HOOD more volatile than the S&P 500?

Yes. HOOD's volatility over the past 5 years was 68.6%, 4.0 times the S&P 500's 17.1%. Volatility measures how widely returns swing around their average: in roughly two years out of three, HOOD's return lands within 68.6% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump.

### What is HOOD's Sharpe ratio?

HOOD's Sharpe ratio over the past 5 years was 0.59, against 0.79 for the S&P 500, so HOOD earned less for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings.

### How correlated is HOOD with the S&P 500?

Over the past 5 years, HOOD's monthly returns had a correlation of 0.50 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They often move together: some diversification next to an index fund, but not a cushion. In the table, the correlation column measures each option against HOOD instead: the lower it is, the more that option would diversify a HOOD holding.

### What are the best alternatives to HOOD?

None of the 21 popular alternatives we compared outperformed HOOD in at least 3 of 5 short-term and 2 of 2 long-term timeframes, which says more about HOOD's strength than about its alternatives.

### Did HOOD outperform the S&P 500?

HOOD finished ahead of the S&P 500 (SPY) in three of four full calendar years. In 2025, it returned +204%, against +17.7% for the index.

### How did HOOD do in stock market crashes?

HOOD fell less than the S&P 500 (SPY) in none of the two major crashes it has traded through, and further in two. The clearest case was the 2022 bear market, when HOOD fell 60.4% and the S&P 500 fell 24.5%.

### What diversifies HOOD?

These had a low correlation with HOOD over the past 5 years and still earned a positive 5-year return: among large ETFs, LVHI (correlation 0.07), DXJ (correlation 0.16) and EMLP (correlation 0.24); among large stocks, CAH (correlation 0.10), FIX (correlation 0.38) and MCK (correlation 0.04). A correlation near zero means the two have moved largely independently.

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## Explore further

- Full page with charts: https://easycompare.io/research/hood
- All research pages: https://easycompare.io/llms.txt
- Compare the entire market against HOOD live: https://betterthanspy.com/?b=HOOD&utm_source=easycompare&utm_medium=research