Mutual Fund Secrets: Amazon's Investors Revealed

Amazon has become a global online retail giant, with a market value of nearly $1 trillion. The company's stock has soared over the years, making it popular among individual investors and mutual funds. Amazon's largest mutual fund holder is the Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX), which owns more than 12.10 million shares with a market value of $41.90 billion as of April 30, 2021. Other top mutual fund holders of Amazon stock include the Vanguard 500 Index Fund Admiral Shares (VFIAX), the SPDR S&P 500 ETF Trust (SPY), and the Fidelity 500 Index Fund (FXAIX). These funds provide investors with exposure to Amazon's performance and allow them to benefit from the company's growth and success.

Vanguard Total Market (VTSAX)

The Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) is Amazon's largest mutual fund holder, owning more than 12.10 million shares with a market value of $41.90 billion as of April 30, 2021. Amazon represents 3.40% of the portfolio within the VTSAX. The fund has approximately $1.20 trillion in assets under management and an expense ratio of 0.04%. The minimum investment requirement for VTSAX is $3,000.

VTSAX is one of the largest mutual funds and provides broad stock market exposure. It is designed to track the CRSP US Total Market Index, allowing investors to gain exposure to the entire US stock market. The fund's top holdings are in well-known companies such as Apple, Microsoft, Amazon, Facebook, and Johnson & Johnson. As of November 27, 2023, VTSAX had assets totalling almost $1,271.37 billion invested in 3,827 different holdings.

The fund has delivered strong returns over the years, with an annualized return of 14.02% over a 10-year period as of April 30, 2021. It has consistently outperformed its peers, ranking in the top half of Morningstar's large-blend category for trailing 3-, 5-, and 10-year periods. VTSAX's risk level is considered average when compared to other funds in the large-blend peer group.

Vanguard, the parent company of VTSAX, is known for its low-cost approach, offering a wide array of mutual funds and ETFs. The company's trademark low-cost index products have led to significant inflows of assets into its funds in recent years.

Vanguard 500 (VFIAX)

Vanguard 500 Index Fund Admiral Shares (VFIAX) is one of the top mutual fund holders of Amazon stock. As of April 30, 2021, VFIAX owned 8.8 million shares with a total market value of $30.5 billion, representing 4.20% of the portfolio within the fund. Amazon has grown to become a global online retail giant, with a market value of nearly $1 trillion.

Vanguard's VFIAX fund offers exposure to the stocks of 500 large corporations in the U.S. across various sectors. With $732 billion in assets under management, the fund provides broad stock market access with a low expense ratio of 0.04%. As of April 30, 2021, the fund had a 10-year annualized return of 14.14%.

The VFIAX has a minimum investment requirement of $3,000, but Vanguard also offers an exchange-traded fund (ETF) version called the Vanguard S&P 500 ETF (VOO), which is similar to the VFIAX and costs the price of one share.

The fund seeks to track the performance of its benchmark index, the S&P 500, by employing an indexing investment approach. It attempts to replicate the target index by investing all its assets in the stocks that make up the Index, with the same approximate weightings.

With its large exposure to Amazon stock, the Vanguard 500 Index Fund Admiral Shares (VFIAX) provides investors with an opportunity to have a slice of Amazon's performance as part of a diversified portfolio of large-cap U.S. companies.

SPDR S&P 500 ETF (SPY)

The SPDR S&P 500 ETF Trust (SPY) is an exchange-traded fund (ETF) that is managed by State Street Global Advisors. As of May 13, 2021, the SPY was the third-largest fund owner of Amazon, holding nearly 4.4 million shares, which represented 3.89% of the total investment within the fund.

The SPY was the first exchange-traded fund listed in the United States when it was launched in January 1993. It seeks to provide investment results that, before expenses, generally correspond to the price and yield performance of the S&P 500 Index, a diversified large-cap US index that holds companies across all eleven GICS sectors. The fund had total net assets of $483.744 billion as of March 1, 2024, and a net expense ratio of 0.09%.

Fidelity 500 Index Fund (FXAIX)

The Fidelity 500 Index Fund (FXAIX) is one of the top 5 mutual fund holders of Amazon stock. As of March 31, 2021, FXAIX held approximately 4 million shares of Amazon, with a market value of nearly $12.10 billion. Amazon represented 3.90% of the fund.

FXAIX is managed by Geode Capital Management, and it tracks the S&P 500 index, which is one of the main benchmarks for U.S. stocks. The fund launched in October 2005 and has consistently delivered strong returns over the years. As of November 27, 2023, the fund had assets totaling almost $407.60 billion invested in 508 different holdings. It has returned 10.14% over the past year, 10.35% over three years, 11.00% over five years, and 11.17% over the past decade.

The expense ratio for FXAIX is 0.02%, which is significantly lower than the category average of 0.85%. The fund has no investment minimum, making it accessible to a wide range of investors.

FXAIX provides investors with broad diversification across all sectors, as the S&P 500 covers about 80% of the investable market capitalization of the U.S. equity market. This diversification helps the fund withstand volatility and provides a core large-cap holding for investors' portfolios.

Vanguard Growth Index Fund (VIGRX)

The Vanguard Growth Index Fund (VIGRX) is a mutual fund that offers investors exposure to a portfolio of large-cap stocks with above-average growth potential. As of November 27, 2023, the fund had assets of nearly $170.72 billion invested in 225 different holdings. The fund's expense ratio is 0.17% or 0.18% (according to different sources), which is considered low for its category.

VIGRX falls within Morningstar's large-growth category and is passively managed, tracking the CRSP US Large Growth Index. The fund's investment style focuses on large-cap stocks in sectors that tend to grow faster than the broader economy. As of August 31, 2024, 59% of its assets were in the top 10 holdings, including Meta Platforms Inc Class A, Alphabet Inc Class A, and Alphabet Inc Class C.

VIGRX has a minimum initial investment requirement of $3,000, and it launched in November 1992. The fund's performance has been strong, with returns of 20.72% over the past year, 7.18% over three years, 13.54% over five years, and 12.74% over the past decade.

Vanguard, the parent company, is known for its low-cost index products and has a wide array of mutual funds and ETFs. The fund is managed by Gerard O'Reilly, who has been with the fund since 1994, and Walter Nejman, who joined in 2016.

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