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 become notable for its extreme overvaluation according to traditional valuation metrics. One of the main reasons for Amazon's lack of profitability is its continued dedication to expansion by reinvesting much of its earnings and cash flow back into the business. This high-growth strategy has made its stock popular among both individuals and mutual funds that employ a higher-risk investing approach. The following are the mutual funds that hold the most Amazon shares.

Vanguard Total Stock Market Index Fund (VTSMX)

The Vanguard Total Stock Market Index Fund ("VTSMX") is one of the largest mutual funds and provides broad stock market exposure. The fund passively manages over $701.2 billion.

As of June 30, 2018, VTSMX owns 10.32 million Amazon shares which accounts for 2.5% of the funds total assets and 2.13% of Amazon's total shares held. It has an expense ratio of 0.14%, a five-year annualized return of 13.14% and a minimum investment of $3,000.

Vanguard 500 Index INV (VNFIX)

Offering exposure to some of the largest U.S. companies, the Vanguard 500 Index ("VFINX") is the second largest mutual fund holder in Amazon, with over 7.2 million shares to its name or 1.5% of the company, as of June 30, 2018. VFINX's assets total $414.7 billion, with 2.96% of those assets invested in the Amazon stock. The fund has an expense ratio of 0.14%, a five-year annualized return of 13.26% and requires a minimum investment of $3,000. 

Fidelity Contrafund (FCNTX)

The Fidelity Contrafund ("FCNTX") is the third largest Amazon major fund shareholder, with just over 5 million shares or 1.03% of the company. The fund holds total assets exceeding $128.4 billion as of June, 2018. It seeks to invest when a stock's price doesn't fully reflect its company's intrinsic value. As such, it focuses on large-cap stocks that the fund's managers feel are unloved or underappreciated by Wall Street.

The fund has 6.36% of it's total assets invested in Amazon. FCNTX has an expense ratio of 0.74%, a five-year annualized return of 16.02% and a minimum investment of $2,500. 

SPDR S&P 500 ETF (SPY)

The SPDR S&P 500 ETF ("SPY") is representative of the Standard & Poor's 500 Index. As of July 24, 2018, SPY owns just over 4.49 million shares or 1% of the company. SPY has assets totaling $71.88 billion with Amazon as its third largest holding. As of June 30, 2018, SPY has a five year annualized return of 13.42%.

Vanguard Institutional Index (VINIX)

As of June 2018, Vanguard Institutional Index (VINIX) owns 3.89 million shares in Amazon stocks, representing 2.96% of their $223.5 billion total assets. The VINIX provides a blend of large cap stocks, mainly consisting of tech giants like Amazon. Owning 0.80% of Amazon stock, VINIX is Amazon's fifth largest mutual fund shareholder.

The Fund has an expense ratio of 0.04% a five-year annualized return of 13.27% and a minimum investment of $5 million. 

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