Coca-Cola soda began in 1886 when Atlanta pharmacist Dr. John S. Pemberton created the now-famous soft drink, which was sold in the soda fountain of a pharmacy. The unique drink had moderate success, averaging nine servings per day. Prior to his death, he sold the majority of his stake to Asa Candler, an Atlanta businessman, who incorporated The Coca-Cola Company (KO) in 1892.

Candler expanded distribution to soda fountains all over the country. As demand for the soda grew, Joseph Biedenharn installed bottling machinery in the back of his pharmacy in Mississippi, becoming the first to bottle Coca-Cola.

Coca-Cola has grown to become one of the world's largest beverage companies, with over 500 sparkling and still brands and around 4,300 different products worldwide. In 2019, Coca-Cola brought in $37.3 billion in revenue. Coca-Cola has a market cap of $215.8 billion. The following are the top four largest mutual fund holders of Coca-Cola. 

Key Takeaways

  • Coca-Cola has a storied history, with the soft drink being created in 1886.
  • In 1892 The Coca-Cola Company (KO) was founded.
  • Today, Coca-Cola has a market cap of over $200 billion and has attracted major mutual fund companies as shareholders.
  • The top four mutual fund holders of Coca-Cola as of Oct. 2020 include the Vanguard Total Stock Market Index Fund (VTSMX), the Vanguard 500 Index Fund Investor Shares (VFINX), the SPDR S&P 500 ETF (SPY), and the Fidelity 500 Index Fund (FXAIX).

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

The largest mutual fund holder, the Vanguard Total Stock Market Index Fund (VTSMX), owns 110.2 million shares of Coca-Cola as of June 30, 2020. The fund's investment accounts for 2.56% of Coca-Cola's total shares held and represents 0.60% of VTSMX's total assets. This mutual fund is designed to offer broad exposure to the total U.S. stock market by including small-cap, mid-cap, and large-cap growth and value stocks.

As of Sept. 30, 2020, VTSMX has $937.6 billion in AUM and an expense ratio of 0.14%. The fund has a five-year annualized return of 13.56%. It is closed to new investors, but the Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) are available for a minimum investment of $3,000. 

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

As of June 30, 2020, the Vanguard 500 Index Fund (VFINX) owns 79.2 million shares of Coca-Cola, making it the second-largest mutual fund holder. VFINX owns 1.8% of the total shares held of Coca-Cola. This represents 0.7% of the fund's total assets. VFINX is invested in 508 stocks covering a diversified spectrum of the largest US. companies, mirroring the S&P 500 Index.

As of June 30, 2020, VFINX has $573 billion in AUM and an expense ratio of 0.14%. The fund has a five-year annualized return of 14.00%. It is closed to new investors, but Vanguard 500 Index Fund Admiral Shares (VFIAX) are available for a minimum investment of $3,000.

3. The SPDR S&P 500 ETF (SPY)

The SPDR S&P 500 ETF (SPY), a $265.1 billion ETF, owns 40.2 million shares of Coca-Cola, representing 0.67% of its total assets as of Oct. 21, 2020. The shares represent 0.94% of the total shares held in Coca-Cola.

The fund tracks the S&P 500 index following a passively managed, full-replication approach invested in 505 stocks. The fund has a five-year annualized return of 13.88% as of September 30, 2020.

4. The Fidelity 500 Index Fund (FXAIX)

The Fidelity 500 Index Fund (FXAIX) is a $119.5 billion institutional fund that tracks the S&P 500 Index following a passively managed, full-replication approach invested in 508 stocks.

This fund owns 34.5 million shares of Coca-Cola which accounts for 0.8% of Coca-Cola's total shares as of Sept. 30, 2020. Coca-Cola shares represent 0.66% of the fund's assets. The funds have a five-year annualized return of 14.1%.