Thank Goodness for No Commissions

Published by Christopher Schwarz on

Yesterday I documented that the number of Robinhood accounts has soared. Here is the annualized position turnover of Robinhood users.

Annualized Robinhood Position Turnover, red line 30 day average

Before this year, position turnover was somewhere around 100-200%, which is not that much different than most actively managed mutual funds.

However, since March, turnover has soared – hitting close to 1000% annualized. Today the 30 day average is close to 400%.

Again, this is not investing. This is trading. We’ll see later whether the RH users or the house is winning.