Top 5 Mutual Fund Holders of McDonald's

McDonald's Corporation (MCD) has more than 38,000 restaurant locations globally in 119 countries, with 93% owned and operated by franchisees. The company announced its second-quarter 2020 results on July 28, 2020, reporting $3.76 billion in revenue—a 30% decrease over the $5.41 billion it reported in Q2 2019.

Here are the five largest mutual fund holders of McDonald's as of Q1 2021.

1. The Vanguard Total Stock Market Index Fund (VTSAX)

The largest mutual fund holder of McDonald's, Vanguard Total Stock Market Index Fund (VTSAX), owns 21 million shares of McDonald's, or 2.81% of the company. 

This mutual fund is designed to give broad exposure to the total U.S. stock market by including small-cap, mid-cap, and large-cap growth and value stocks. The fund has $240.5 billion in net assets invested across 3,745 stocks, with McDonald's making up around 0.5% of the company's total portfolio. The fund has a 0.04% expense ratio with a minimum investment of $3,000. 

2. The Vanguard 500 Index Fund (VFIAX)

The Vanguard 500 Index Fund (VFIAX) owns 14.9 million shares of McDonald's. The fund is invested in 509 stocks covering a diversified spectrum of the largest U.S. companies, mirroring the S&P 500 index.

The total net assets are $220.4billion, with around 0.6% of the fund's total portfolio invested in McDonald's. VFIAX's roughly 15 million MCD shares represent 2% of the company. The fund has a 0.04% expense ratio with a minimum investment of $3,000.

3. The Vanguard Wellington Fund (VWENX)

The Vanguard Wellington Fund Investor Shares (VWENX) is a $114 billion mutual fund that holds 60 stocks. It owns 12.5 million shares of McDonald's, which is roughly 1.67% of the company. Its McDonald's position is its fifth-largest and makes up 2.22% of the fund's net assets. This fund is Vanguard's oldest mutual fund, investing roughly two-thirds of its assets in stocks and the other third in bonds. The fund has a 0.16% expense ratio and a 51% annual turnover rate.

4. The Vanguard Dividend Growth Fund (VDIGX)

The fourth-largest mutual fund holder of McDonald's is the Vanguard Dividend Growth Fund (VDIGX). This mutual fund is invested in just 40 stocks. VDIGX owns 8.25 million shares of McDonald's, or about 1.1% of the company, as of Q1 2021. McDonald's stock is the second-largest fundholding and makes up 3.74%% of its $48.2 billion in net assets.

Over the last five years, the VDIGX has an annualized return of 14.3%. The fund has an expense ratio of 0.27% and a minimum investment of $3,000 is required.

5. The SPDR S&P 500 ETF Trust (SPY)

The SPDR S&P 500 ETF (SPY) is famed for being the first-ever exchange traded fund and tracks the S&P 500 just like VFIAX. SPDR's net assets amount to $360 billion, with around 0.6% of its portfolio invested in McDonald's stock. As of Q1 2021, SPY owns 7.7 million shares of McDonald's or 1.04% of the company.