This segment includes services and durable goods or products that don't have a shelf life. Nondurable goods are also part of this segment. These are goods that have an expiration date like mouthwash and vitamins. Consumer goods are those that people can't do without and are always in demand, regardless of the economic conditions. This is one of the reasons why P&G is always so profitable. Keep reading to find out more about the company and the top three mutual funds that invest in P&G.
- Procter & Gamble is one of the world's largest consumer goods companies.
- The top three mutual funds that invest in P&G are the Vanguard Total Stock Market Index Fund, the Vanguard 500 Index Fund, and the SPDR S&P 500 ETF.
- The VTSMX has 2.85% of P&G's outstanding shares while VFINX has 2.02% outstanding shares.
- SPY 25.5 million shares of Procter & Gamble, making it the third-largest shareholder.
Procter & Gamble: An Overview
P&G was founded in 1837 by William Procter and James Gamble. The multinational corporation is headquartered in Cincinnati and employs more than 97,000 people around the world. As mentioned above, it is one of the largest consumer goods companies in the world.
The company has a portfolio with 10 different categories, which include fabric care, home care, baby care, feminine care, family care, personal health care, oral care, grooming, hair care, and skin and personal care. It owns more than 50 well-known brands, such as Tide, Gillette, Dawn, and Pantene.
P&G reported its financial results for the 2020 fiscal year on July 30. It earned $71 billion in net sales for the year. This was an increase of 5% from the previous year. Organic sales increased by 6% and operating cash flow came in at $17.4 billion for the year. P&G's market capitalization was $304.19 billion at the end of trading on Feb. 26, 2021.
Below, we've listed the top three mutual fund investors in P&G as per Morningstar.
1. Vanguard Total Stock Market Index Fund (VTSMX)
The largest mutual fund holder, the Vanguard Total Stock Market Index Fund (VTSMX), owns 70.1 million shares of P&G, which represents 2.85% of the total shares held in the company as of March 3, 2021.
This mutual fund was founded in 1992 and designed to give broad exposure to the total US. stock market by including small-, mid-, and large-cap growth and value stock.
As of Jan. 31, 2021, VTSMX has $1.1 trillion in assets under management (AUM) and invests 0.84% of its total assets in P&G. It has a five-year annualized return of 17.32%, and an expense ratio of 0.14%. The fund is closed to new investors.
While you can't invest in the Vanguard Total Stock Market Index Fund or the Vanguard 500 Index Fund, you can purchase shares of the SPDR S&P 500 ETF.
2. Vanguard 500 Index Fund Investor Shares (VFINX)
The Vanguard 500 Index Fund (VFINX) is the second-largest mutual fund holder of P&G with 49.8 million shares as of March 3, 2021. This accounts for 2.02% of the total shares held in P&G and represents 1.01% of VFINX's total assets.
The fund is the industry's first index fund for individual investors and is invested in 500 stocks covering a diversified spectrum of the largest US. companies mirroring the Standard and Poor's 500 index (S&P 500).
As of Jan. 31, 2021, VFINX has total net assets of $630.7 billion, with an expense ratio of 0.14% and a turnover ratio of 1.8%. The fund has a five-year annualized return of 16.67%, but it is closed to new investors.
3. SPDR S&P 500 ETF (SPY)
SPY, a fund that aims to track the S&P 500 index and replicate it as closely as possible, owns 25.5 million shares of P&G as of March 3, 2021, making it the third-largest investor in the company.
This accounts for 0.95% of its total assets and 1.04% of total shares held in P&G. As of March 2, 2021, the fund has total assets of $333.49 billion and an expense ratio of 0.0945%. SPY has a five-year annualized return of 15.04%.