Founded in 2003 by entrepreneur Elon Musk, Tesla Motors (TSLA) has captured the imagination of customers and investors alike with its line of electric vehicles. Through a series of production delays, lawsuits, and tweets by co-founder and CEO Elon Musk, the company has taken investors along for a rollercoaster ride with stocks plummeting more than 22%, from $370 to $288 between September 27 and October 24.
Here are the three largest mutual funds invested in Tesla as of June 2020.
- Tesla is a well-known electric vehicle company founded in 2003 by a group of engineers and business people and led by CEO Elon Musk.
- While Musk remains among the top shareholders of the firm, 73% of the company's float is held by institutional investors.
- Here, we take a look at the top 3 mutual funds that have the most TSLA shares.
American Funds Growth Fund of America (AGTHX)
The American Funds Growth Fund of America (AGTHX) is currently the largest mutual fund invested in Tesla. With 5.1 million shares under its belt in June 2020, AGTHX holds 2.75% of the company's total stock. AGTHX has net assets of $201.6 billion according to Morningstar, with 1.63% of its portfolio invested in Tesla.
The fund's main investment objective is to provide long-term growth of capital, with a secondary objective of securing future income. The American Funds New Perspective Fund diversifies its investments among blue chip companies worldwide, emphasizing on multinational and global companies. The fund primarily invests in common stocks, convertibles, preferred stocks, bonds, and cash. As of June 2020, AGTHX has a five-year annualized return of 11.85%. The fund 0.65% expense ratio and a minimum investment of $250.
Vanguard Total Stock Market Index (VTSMX)
The second-largest mutual fund backing Tesla is the Vanguard Total Stock Market Index (VTSMX) fund. As of June 2020, Vanguard Total Stock Market Index holds 4.1 million shares of Tesla, which amounts to 2.2% of the company's total shares. VTSMX's ownership in Tesla accounts for 1.2% of the fund's total assets. As of June 2020, the fund has $141 billion in assets under management (AUM) and requires a minimum of $3,000 to invest.
Established in April 1992, the fund's primary objective to track the performance of its benchmark index CRSP US Total Market Index. This objective is accomplished by investing in equity securities of large, mid and small-cap companies across both growth and value investing styles. The fund invests primarily in U.S. stocks. VTSMX has a five-year annualized return of 9.1% and an expense ratio of 0.14%.
American Funds New Perspective Fund (ANWPX)
American funds returns again in the third-place spot with another 3.4 million shares (or 1.82% of the company) in its New Perspectives Fund. ANWPX seeks long-term growth of capital by taking advantage of investment opportunities generated by changes in international trade patterns and economic and political relationships by investing in common stocks of companies located around the world. In pursuing its investment objective, it invests primarily in common stocks that the investment adviser believes have the potential for growth.
As of June 2020, the fund's 5-year return is 8.95% and TSLA shares make up 2.22% of its $96.5 billion portfolio. A minimum of $250 is needed to buy fund shares, with an expense ratio of 0.76% annually.