Red Flag or Not? Robinhood Markets is selling 5M shares of RVI into the IPO instead of doubling down. Why take $125M off the table on Day 1?

u/Foundamentals · Reddit — r/ValueInvesting · February 20, 2026 at 19:06 · 💬 5 comments  | View on Reddit ↗
AI Summary

Original Reddit post

Bearish/cautious view on the RVI IPO, questioning Robinhood's decision to sell 5M shares into the offering and highlighting the 4% entry fee versus zero-load alternatives.

RVI — AVOID The author questions why Robinhood (HOOD) is selling 5M shares of RVI into the IPO rather than doubling down, framing it as either 'seed recycling' or a lack of conviction. The author notes RVI charges a 4% entry fee ($1.00 per share) to cover Goldman's fee and admin costs, versus 0% load for Fundrise or an ETF, meaning IPO buyers start 4% behind. The author suggests waiting 90 days for the likely closed-end fund discount to buy at $23.00 instead of $25.00.

By buying the RVI IPO, you are essentially starting the race 4% behind. Why not wait 90 days for the inevitable 'Closed-End Fund Discount' and buy it at $23.00 instead of $25.00?

Comments 5
Full Post Text
Ideas
u/Foundamentals Reddit r/ValueInvesting
RVI IPO 4% fee, wait for discount
The author questions why Robinhood (HOOD) is selling 5M shares of RVI into the IPO rather than doubling down, framing it as either 'seed recycling' or a lack of conviction. The author notes RVI charges a 4% entry fee ($1.00 per share) to cover Goldman's fee and admin costs, versus 0% load for Fundrise or an ETF, meaning IPO buyers start 4% behind. The author suggests waiting 90 days for the likely closed-end fund discount to buy at $23.00 instead of $25.00.
More from Reddit — r/ValueInvesting

This Reddit post, published February 20, 2026, features u/Foundamentals discussing RVI. 1 trade idea extracted by AI with direction and confidence scoring.

Speakers: u/Foundamentals  · Tickers: RVI