Founded in 1994 as an online bookstore, Amazon.com Inc. (NASDAQ: AMZN) has become the largest Internet-based retailer in the world. The company has also branched out into cloud computing, electronics, and content distribution, and it has begun testing drone delivery in certain areas.
Amazon's stock has soared over the years and is notable for its extreme overvaluation according to traditional valuation metrics. In 2020, Amazon posted $21.30 billion in profit for the full year with net sales increasing to $386.10 billion, which was an improvement of 38% versus 2019.
Amazon's stock has been popular among both individual investors and mutual funds, which are investment vehicles that hold a basket of stocks or securities. Below are the top five mutual fund holders of Amazon's stock.
Key Takeaways
- Amazon has grown to become a global online retail giant, with a market value of nearly $1 trillion.
- Among its largest shareholders are mutual funds, allowing investors in those funds to have a slice of Amazon's performance.
- The top 5 mutual funds that hold Amazon stock include Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) and the SPDR S&P 500 ETF Trust (SPY).
1. The Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX)
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. Amazon represents 3.40% of the portfolio within the VTSAX as of April 30, 2021.The VTSAX is one of the largest mutual fundsand provides broad stock market exposure.
With approximately $1.20 trillion in assets under management, Vanguard's VTSAX has an expense ratio of 0.04%, and a 10-year annualized return of 14.02% as of April 30, 2021. The fund has a $3,000 minimum investment requirement.
Vanguard also offers an exchange traded fund (ETF) that's similar to the VTSAX called the Vanguard Total Stock Market ETF (VTI). The VTI has a lower investment requirement, which is the price of one share.
2. The Vanguard 500 Index Fund Admiral Shares (VFIAX)
Amazon's second-largest mutual fund holder is the Vanguard 500 Index Fund Admiral Shares (VFIAX). As of April 30, 2021, the VFIAX owns 8.8 million shares with a total market value of $30.50 billion. Amazon represents 4.20% of the portfolio within the VFIAX.
Vanguard's VFIAX offers exposure to the stocks of 500 large corporations in the U.S. across various sectors. With $732 billion in assets under management, the VFIAX has an expense ratio of 0.04%, and a 10-year annualized return of 14.14% as of April 30, 2021.
The VFIAX also has a minimum investment requirement of $3,000 but Vanguard offers an ETF version called the Vanguard S&P 500 ETF (VOO). The VOO is similar to the VFIAX and costs the price of one share.
3. The SPDRS&P 500ETF Trust (SPY)
Amazon's third-largest fund owner is an exchange-traded fund (ETF). The SPDR S&P 500 ETF Trust (SPY) is managed by State Street Global Advisors. As of May 13, 2021, the SPY owns nearly 4.40 million shares, which represents 3.89% of the total investment within the fund.
The SPY tracks the S&P 500 index following a passively managed approach. The fund has a five-year annualized return of 17.25% as of April 30, 2021. With $358.4 billion in assets under management, the SPY has an expense ratio of .0945%.
4. Invesco(QQQ)
Invesco's QQQ is an exchange-traded fund that contains the stocks within the Nasdaq-100 Index. The fund typically includes 100 of the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market.
The QQQ owns approximately 4.20 million shares of Amazon representing 8.48% of the fundand a market value of nearly $12.90 million as of March 30, 2021.
Invesco’s QQQ has $843 million in assets, an expense ratio of 0.20%, and a five-year annualized return of 27.20% as of April 30, 2021.
5. The Fidelity 500 Index Fund (FXAIX)
Amazon's fifth-largest mutual fund holder is the Fidelity 500 Index Fund (FXAIX), which has $328 billion in assets under management. The FXAIX tracks the S&P 500 Index and owns approximately 4 million shares of Amazon worth nearly $12.10 billion in market value. Amazon represents 3.90% of the fund as of March 31, 2021.
Fidelity's FXAIX has an expense ratio of .015% and a five-year annualized return of 14.41% as of April 30, 2021. There is no investment minimum for the fund.
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