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Morgan Stanley (MS) was founded on Sept. 16, 1935. The firm went public in 1986 and has grown to provide advisory, banking, financing, research, sales, market making, and wealth management services. Morgan Stanley has a market cap of $154 billion as of April 2021. Here are the top four mutual fund holders of Vanguard.

Top Mutual Fund Holders of MS (as of Q1 2021)
Holder Shares % Out $ Value
Vanguard Total Stock Market Index Fund 40,801,449 2.18% 2,796,123,299
Vanguard 500 Index Fund 28,639,190 1.53% 1,962,643,690
Price (T.Rowe) Value Fund 21,102,994 1.13% 1,446,188,178
SPDR S&P 500 ETF Trust 15,568,055 0.83% 1,209,015,151
Source: Yahoo! Finance

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

The Vanguard Total Stock Market Index Fund (VTSAX) was created in 1992 and is designed to give broad exposure to the total U.S. stock market by including small-cap to large-cap growth, as well as value stocks. VTSAX is the largest shareholder of Morgan Stanley as it owns 40.8 million shares or 2.18% of Morgan Stanley as of Q1 2021.

The fund has $240.5 billion in assets under management (AUM) and its Morgan Stanley investment constitutes 0.19% of its portfolio. The fund has an expense ratio of 0.04% and a five-year annualized return of 13.56%. The fund requires a minimum investment of $3,000.

2. The Vanguard 500 Index Fund Investor Shares (VFIAX)

The Vanguard 500 Index Fund (VFIAX) owns 28.6 million shares, which account for 1.53% of shares held in the company and 0.22% of VFIAX's portfolio. The fund is the industry's first index fund for individual investors. The portfolio contains a diversified spectrum of the largest US. companies mirroring the Standard and Poor's 500 Index (S&P 500).

The fund has $220.4 billion in AUM, an expense ratio of 0.04%, and a five-year annualized return of 14%. The fund requires a minimum investment of $3,000. 

3. The T. Rowe Price Value Fund (TRVLX)

The T. Rowe Price Value Fund (TRVLX) has $35.5 billion in assets under management. It's the third-largest mutual fund holder of Morgan Stanley, owning almost 21.1 million shares—the fund's second-largest holding at 4.11% of total assets.

As the third-largest mutual fund holder of Morgan Stanley, the T. Rowe Price Value Fund owns just over 1.1% of Morgan Stanley's outstanding shares. The fund invests in what it calls "bargain" stocks. It has a 0.78% expense ratio and has a five-year annualized return of 8.62%.

4. The SPDR S&P 500 ETF (SPY)

The SPDR S&P 500 ETF (SPY) is a $343 billion fund, owning 15.5 million Morgan Stanley shares—roughly 0.8% of the investment bank's outstanding shares. Morgan Stanley makes up around 0.25% of the SPDR S&P 500 ETF fund.

The expense ratio for the SPDR S&P 500 ETF is 0.0945%. The fund has a five-year annualized return of 13.98%. This fund, which started trading in 1993, was the first ETF listed in the U.S. The SPDR S&P 500 ETF looks to track the performance of the S&P 500 index.