Investing

Funds With the Biggest Shares of Stock You Want to Own

Where to go to Get Your Piece

There are many companies on the market that people wish they could have a piece of. They would love to add them to their portfolio for security and growth while they beat themselves up over not investing in them when they were younger companies.

You are wasting your time thinking about investments you believe you should have made a long time ago. They cannot be done now and you are missing out on current opportunities. If you don’t want to pay the full price to get a piece of the most desirable companies now, you can still find your way into shares through mutual funds. Featured here are some of the most attractive companies on the market today and the funds that have the largest shares of them.

The Big Names

Google, Facebook, Microsoft, Amazon, Apple. These are the companies that people are well aware dominate their markets. Few companies appear to have as strong a foundation for safety and as much opportunity for growth.

Asking which mutual funds you can get involved with is a misleading question, because since these are each among the largest companies in the world, there are plenty of funds you can invest with that have them all in their portfolio.

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Vanguard Total Stock Market Index (VTSMX)

This is a huge fund that manages meaningful shares of all the companies mentioned above. It has become so popular, in part, because of its low expense ratio of 0.14%. These kinds of index funds with are the hallmark of Vanguard. You will see their index funds among the top rated funds in many categories.

The five companies mentioned above account for more than ten percent of the index fund’s holdings with Apple and Microsoft taking up the largest portions. With that said, if you are not interested in resting with the giants and are looking for more value and growth opportunities, this can still be a great fund for you. Since the fund is designed to passively track the performance of the entire market, it also has considerable shares of small and mid-cap companies as well.

The only down side to this fund is that it might be a little exclusive for you. The minimum invest required to get into the fund is $3,000. If you are looking to be involved with these large companies and their strong foundation without the somewhat restrictive entrance fee, there are other places to go.

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American Funds Growth Fund of America (AGTHX)

While the entrance to the Vanguard funds might be intimidating, this American Funds growth fund only requires an initial investment of $250 while still providing exposure to all of these large companies. The expense ratio is higher on this fund at 0.62% and it is actively managed. Some of its other larger holdings include companies such as Netflix, Berkshire Hathaway, Home Depot, Charter Communications, and UnitedHealth Group.

This fund is the third-largest holder of Alphabet Inc. stock, which is the parent company of Google.

The Easiest Way to Get Involved

Index funds, like the Vanguard fund mentioned above, offer the best opportunity to hold large companies in a fund with low expenses. This is a great strategy for people who are willing to get into an investment for long-term results instead of short-term gains. For those that are looking to own parts of these large companies, S&P 500 Index funds are the easiest way to do it. They will track the performance of the top 500 companies in the market, which will always include these behemoths.

If you have the opportunity to get into any fund you want, the fund with the lowest possible expense ratios are a good choice since those deductions from your account can add up, especially when the fund reaches a large amount. Whether you can get into the larger funds or not, you should always be paying attention to expense ratios.

 

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