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Roku, Inc. is a $6.12 billion consumer electronics and broadcast media company competing with giants like Amazon and Apple in the booming and competitive streaming business. When it comes to streaming, Netflix, Hulu, and HBO tend to make the most noise. Out of the more than 5 billion hours of TV and movies streamed by viewers in the second quarter, however, one unlikely company took the largest share at 22.1%.

Roku is perhaps best known for their device players and TVs which give viewers access to a homepage where they can subscribe to various paid and free streaming apps like Netflix, Amazon, and Hulu. The company went public in September 2017 with an IPO of $14 per share and the company's stock price has more than quadrupled in the year since. Roku released Q3 2018 earnings on November 7, 2018. The leader in streamed content reported $173.4 billion in revenues this quarter, up 39% from $124.8 million over the same period last year.

The four largest mutual fund holders of ROKU (Reported as of Q3 2020)
Holder # Shares Date Reported % Outstanding
ARK Innovation ETF 3,545,973 Dec, 21, 2020 3.26%
Fidelity Growth Company Fund 3,146,735 Oct 30, 2020 2.89%
Vanguard Total Stock Market Index Fund 2,971,999 Sep 29, 2020 2.73%
Vanguard Mid-Cap Index Fund 2,285,492 Sep 29, 2020 2.10%
Source: Yahoo! Finance

1. ARK Innovation ETF (ARKK)

The ARK Innovation ETF (ARKK) is an actively traded fund that includes companies that rely on or benefit from technological innovation; i.e., the development of new products or services, technological improvements, and advancements in scientific research in three primary areas: industrial innovation; genomics; and internet/Web x.0. This relatively new ETF was launched in October of 2014 and has become the single largest holder of ROKU shares, with 3.55 million shares (3.26% of the company), making the fund's second-largest holding, or 7% of its $17.21 billion portfolio. 

2. Fidelity Growth Company Fund (FDGRX)

The Fidelity Growth Company Fund (FDGRX) invests primarily in common stocks of domestic and foreign issuers that Fidelity Management & Research believes offer the potential for above-average growth. Growth may be measured by factors such as earnings or revenue. As of Q3 2020, it is the largest mutual fund holder of ROKU, owning 3.15 million shares, or 2.9% of the companies float. This represents 1.16% of the Fund's nearly $62 billion in assets under management (AUM). FDGRX has no minimum investment, but is actively managed so it charges a relative higher management fee of 0.86%.

3. Vanguard Total Stock Market Index Fund (VTSMX)

The Vanguard Total Stock Market Index Fund (VTSMX) is one of the largest mutual funds in the industry. The fund has an extremely low expense ratio, making it a reliable core holding for investors. As of the third quarter of 2020, the Vanguard Total Stock Market Index Fund owns about 2.73% of Roku, or just under 3 million shares, which also represents just 0.01% of the fund's total assets. VTSMX has $199.1 billion in total assets and an expense ratio of 0.14%, with a minimum investment of $3,000.

4. Vanguard Mid-Cap Index Fund (VIMSX)

The $42.6 billion Vanguard Mid-Cap Index Fund (VIMSX) provides broad mid-capitalization U.S. equity exposure. The fund seeks to track an index of medium-sized companies, whose stocks tend to be more volatile than those of larger companies using passive management.  The fund is the fourth largest mutual fund holder of ROKU, with just under 2.3 million shares, or 2.1% of the company's equity.