Facebook, Inc. (FB) has established itself as the leading social media giant with a market capitalization of $536 billion as of October 25, 2019. When Facebook issued its initial public offering (IPO) on May 18, 2012, many mutual funds had already snapped up shares on the private market. After that, these funds spread their shares of Facebook across many funds.
Although Facebook's stock price has gone on a roller-coaster ride, those funds that held on to shares benefited from its high growth rate. It is important to note that these funds have ownership of the Facebook Class A shares, and not the Facebook Class B shares, which carry heavier voting rights.
Funds Betting Heavily on FB
Are you looking for an easy way to invest in Facebook (FB) and similar stocks? These funds are overweight Facebook, so they are the way to go.
Fidelity Contrafund (FCNTX)
Launched by Fidelity in May 1967, the Fidelity Contrafund seeks to provide capital appreciation by typically investing in common stocks with growth or value characteristics. As of May 2020, Facebook was the fund's second most significant stock bet. It accounted for 8.2% of the fund's assets.
The Fidelity Contrafund had a 10-year annual average return of 15.57% as of July 2020. The fund has a risk and return profile that is similar to the S&P 500. The net expense ratio was 0.85% in July 2020.
T. Rowe Price Blue Chip Growth Fund (TRCBX)
The T. Rowe Price Blue Chip Growth Fund began in 1993, and it focuses on large companies with strong prospects for long-term growth. As of May 2020, 6.58% of the fund's assets were invested in Facebook. It was the fund's third-largest holding.
The T. Rowe Price Blue Chip Growth Fund produced an average annual return of 18.23% per year during the ten years ending with June 2020. The fund had a net expense ratio of 0.69% at that time.
The Growth Fund of America (AGTHX)
The Growth Fund of America launched in 1973. As of March 2020, the fund invested 5.9% of its assets in Facebook. Facebook was the fund's largest holding at that time.
The Growth Fund of America had an average annual return of 13.90% per year over the last ten years as of March 2020. The expense ratio for the fund was 0.65% in July 2020.
Other Funds With Many Shares of FB
These funds also have many shares of Facebook stock in their portfolios. They reflect the overall market by design, so investing in these funds is not a way to bet more aggressively on Facebook. Facebook accounted for less than 2.5% of their investments. However, in combination they owned just over 6% of the company because they are so massive.
- Vanguard Total Stock Market Index Fund (VTSMX)
- Vanguard 500 Index Fund (VFINX)
- SPDR S&P 500 ETF Trust (SPY)