Top 3 Mutual Funds that Hold Google Stock

The top three mutual fund holders of Alphabet Inc. (GOOGL) stock include the Vanguard Total Stock Market Index Fund, Vanguard 500 Index Investor Fund, and the  Fidelity Contrafund. Alphabet became the holding company for Google on October 2, 2015. One reason for this restructuring was to enable Alphabet’s several subsidiaries to have a more focussed view on their businesses. Alphabet reports earnings in two segments: “Google,” which includes Android, Chrome, and YouTube; and “Other Bets,” which includes CapitalG, Waymo, and X.  

As of July 23, 2018, Alphabet has a market cap of $835.9 billion and the stock is up 12.7% year to date (YTD).  

Vanguard Total Stock Market Index Fund (VTSMX)

The Vanguard Total Stock Market Index Fund (“VTSMX”), launched in 1992, aims to reflect the performance of the overall stock market by acting as a benchmark index. VTSMX is the largest mutual fund holder as it owns 7.4 million shares of Alphabet as of June 29, 2018. This accounts for 1.19% of total shares held. 

As of July 2018, VTSMX has $701.2 billion in assets under management (AUM), an expense ratio of 0.14%, a turnover ratio of 3%, and requires a minimum investment of $3,000. The funds five-year annualized returns is 12.60% and Alphabet accounts for 1.07% of VTSMX’s total assets. 

Vanguard 500 Index Investor (VFINX)

Founded in 1976, the Vanguard 500 Index Investor (“VFINX”) acts a benchmark index and its main focus is on large-cap stocks. Its investment strategy is that of a passively managed fund as it tracks the performance of the S&P 500. VFINX is the second-largest mutual fund holder of Alphabet with 5.4 million shares as of June 29, 2018. This accounts for 0.78% of total shares held and makes up 1.46% of VFINX’s portfolio.

As of July 23, 2018, VFINX has $417.7 in AUM, an expense ratio of 0.14%, a turnover ratio of 3%, and requires a minimum investment of $3,000. The funds has a five-year annualized return of 12.76%. 

Fidelity Contrafund (FCNTX)

Fidelity’s Contrafund (“FCNTX”) was created in 1967. The fund is managed by William Danoff and its stated investment aim is capital appreciation. Stocks are selected for inclusion based on fundamental analysis of the company, the industry the company is engaged in and overall economic conditions. The fund’s manager seeks to identify stocks that are undervalued or offer above-average growth potential. FCNTX invests in both U.S. and foreign stocks. 

FCNTX is the third-largest mutual fund holder of Alphabet with 3.6 million shares as of May 30, 2018. FCNTX’s investment in Alphabet accounts for 3.04% of its total assets and it holds 0.51% of total shares in Alphabet. As of July 23, 2018, FCNTX has $129.2 in AUM, an expense ratio of 0.74%, a turnover ratio of 29%, and requires a minimum investment of $2,500. The funds has a five-year annualized return of 15.76%.

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