Procter & Gamble (PG) is one of the world's largest consumer goods companies. A consumer good is anything that's sold directly to consumers and can be used for personal or recreational use.
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 four mutual funds that invest in P&G.
- Procter & Gamble is one of the world's largest consumer goods companies.
- Institutional investors hold nearly two-thirds of P&G shares.
- The top 4 mutual funds that invest in P&G are the Vanguard Total Stock Market Index Fund, the Vanguard 500 Index Fund, the SPDR S&P 500 ETF, and the Fidelity 500 Fund.
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, oral care, personal health 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 $304.19 billion at the end of trading on Feb. 26, 2021.
Below, we've listed the top three mutual fund investors in P&G as per Morningstar.
|P&G Top Mutual Fund Holders (as of Q1 2021)|
|Holder||Shares||% Out||$ Value|
|Vanguard Total Stock Market Index Fund||69,878,565||2.84%||9,722,903,534|
|Vanguard 500 Index Fund||49,686,128||2.02%||6,913,327,849|
|SPDR S&P 500 ETF Trust||25,546,308||1.04%||3,459,736,492|
|Fidelity 500 Index Fund||22,454,897||0.91%||2,773,853,426|
1. The Vanguard Total Stock Market Index Fund (VTSAX)
The largest mutual fund holder, the Vanguard Total Stock Market Index Fund (VTSAX), owns just under 70 million shares of P&G, which represents 2.84% of the total shares held in the company as of Q1 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 Q1 2021, VTSAX has $240.5 billion 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 0.04% with a minimum of $3,000 invested.
2. The Vanguard 500 Index Fund Investor Shares (VFIAX)
The Vanguard 500 Index Fund (VFIAX) is the second-largest mutual fund holder of P&G with 49.7 million shares as of Q1 2021. This accounts for 2.02% of the total shares held in P&G and represents around 1% of VFIAX'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 Q1 2021, VFIAX has total net assets of $220.4 billion, with an expense ratio of 0.04%, a minimum of $3,000 invested, and a turnover ratio of 4%. The fund has a five-year annualized return of 16.67%.
3. The SPDR S&P 500 ETF (SPY)
SPY, an ETF 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 Q1 2021, the fund has total assets of $360 billion and an expense ratio of 0.0945%. SPY has a five-year annualized return of 15.04%.
4. The Fidelity 500 Index Fund (FXAIX)
The Fidelity 500 Index Fund (FXAIX) is a $308 billion institutional fund that also tracks the S&P 500 Index following a passively managed, full-replication approach.
This fund owns 22.5 million shares of PG, which accounted for 0.91% of its total shares as of Q1 2021. FXAIX has no minimum investment and a low expense ratio of just 0.015%.
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