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Telecommunication services and broadband provider AT&T Inc. (NYSE: T) reported Q3 2020 earnings on October 22, 2020. The multinational company reported consolidated revenues of $42.34 billion, down about 5% compared to the same quarter in Q3 2019. AT&T has a market cap of $206.4 billion as of December 21, 2020.

The four largest mutual funds invested in AT&T (Reported as of Q3 2020)
Fund Holder # Shares Date Reported % Outstanding $ Value
Vanguard Total Stock Market Index Fund 199,772,554 Sep 29, 2020 2.80% 5,695,515,514
Vanguard 500 Index Fund 146,164,439 Sep 29, 2020 2.05% 4,167,148,155
SPDR S&P 500 ETF Trust 76,766,470 Nov 29, 2020 1.08% 2,207,036,012
Fidelity 500 Index Fund 64,208,874 Sep 29, 2020 0.90% 1,830,594,99
Source: Yahoo! Finance

1. Vanguard Total Stock Market Index Fund (VTSMX)

The largest mutual fund holder, Vanguard Total Stock Market Index Fund (VTSMX), owns nearly 200 million shares of AT&T, which accounts for 2.85% of the company as of Q3 2020. This mutual fund was created in 1992 and is designed to give broad exposure to the total US. stock market by including small-cap, mid-cap, and large-cap growth and value stocks. VTSMX has $937.6 billion in assets under management (AUM) and invests 0.7% of its total assets in AT&T. It has a five-year annualized return of 11.37%, an expense ratio of 0.14%, and is closed to new investors.

2. Vanguard 500 Index Fund (VFINX)

As of Q3 2020, Vanguard 500 Index Fund (VFINX) is the second-largest mutual fund holder of AT&T with 146.2 million shares. This accounts for 2.08% of AT&T's total shares and makes up under 1% of VFINX's portfolio. This is the industry's first index fund for individual investors, covering a diversified spectrum of the largest US. companies mirroring the Standard and Poor's 500 index (S&P 500). VFINX has total net assets of $459.3 billion, with an expense ratio of 0.14% and a turnover ratio of 3.9%. The fund has a five-year annualized return of 11.56% and is closed to new investors.

3. SPDR S&P 500 ETF (SPY)

The SPDR S&P 500 ETF (SPY) is the first-ever ETF introduced in the U.S. public market and remains one of the most popular to this day. As of November 2020, SPY is the third-largest AT&T holder with 76.7 million shares. This accounts for about .71% of its total assets and 1.05% of AT&T. The fund has total assets of 277.59 billion and an expense ratio of 0.0945%.

4. Fidelity 500 Index Fund (FXAIX)

The Fidelity 500 Index Fund (FXAIX) is among the least expensive index mutual funds, with an expense ratio of just 0.015% per year. The fund is also the fourth largest mutual fund holder of AT&T shares as of the third quarter of 2020, owning more than 64 million of its shares. The fund manages around $275 billion in assets and has zero minimum investment, making it quite accessible to most investors.