Roku, Inc. (ROKU) is a 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 movies and TV shows, Netflix, Hulu, and HBO tend to get most of the attention. However, Roku is making waves, adding more than 14 million active users in 2020.

Roku is perhaps best known for its device players and TVs, which give viewers access to a homepage where they can subscribe to various paid and free streaming apps, such as Netflix, Amazon, and Hulu. Since the company went public in September 2017 with an IPO of $14 per share, the stock has soared to nearly $400 per share by 2021.

In 2020, Roku surpassed 50 million active accounts, generating $1.78 billion in revenue, and managed to generate two consecutive profitable quarters for Q3 and Q4 2020.

Below are the top funds that hold ROKU equity shares in their portfolios, along with their five-year annualized returns and expense ratios.

The Four Largest Fund Holders of ROKU
Holder # of Shares Market Value Date Reported
ARK Innovation ETF 3.52 million $1.22 billion May 28, 2021
Vanguard Total Stock Market Index Fund Admiral Shares 3.10 million $1.075 billion Apr 30, 2021
Fidelity Growth Company Fund 2.63 million $858 million Mar 31, 2021
Vanguard Mid-Cap Index Fund Admiral Shares 1.07 million $368 million Apr 30, 2021
Source: Yahoo! Finance

1. The ARK Innovation ETF (ARKK)

The ARK Innovation ETF (ARKK) is the largest fund holder of ROKU, owning nearly 3.52 million shares for a market value of more than $1.22 billion as of May 28, 2021.

The ARKK is an exchange traded fund (ETF) that includes stocks of disruptive innovators of technologically-enabled products and services. The fund's holdings are companies that rely on or benefit from scientific advancements and technological improvements in DNA technologies, financial technologies or fintech, industrial automation, and next-generation infrastructure services.

This relatively new ETF was launched in October of 2014 and currently has $22.28 billion in assets under management (AUM) and an expense ratio of 0.75%. The five-year annualized return is 46.27% as of March 31, 2021.

2. The Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX)

The fund with the second-largest ownership position in ROKU shares is a mutual fund called the Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX). The VTSAX owns more than 3.10 million shares with a market value of $1.075 billion as of April 30, 2021.

Vanguard's VTSAX offers investors exposure to the U.S. stock market with approximately $1.2 trillion in assets under management. The VTSAX has a five-year annualized return of 17.67% and an expense ratio of 0.04% as of April 30, 2021. 

The minimum investment requirement is $3,000, but Vanguard offers an ETF version called the Vanguard Total Stock Market ETF (VTI). The VTI has similar holdings as the VTSAX, but the initial investment requirement is only the price of one share.

3. The Fidelity Growth Company Fund (FDGRX)

The Fidelity Growth Fund is the third-largest mutual fund holder of ROKU, owning more than 2.63 million shares for a market value of $858 million as of March 31, 2021.

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.

The fund has nearly $63.90 billion in assets under management and a five-year annualized return of 28.86%. The FDGRX has no minimum investment but is actively managed, so it charges a relatively higher management fee or expense ratio of 0.86%.

4. The Vanguard Mid-Cap Index Fund Admiral Shares (VIMAX)

The Vanguard Mid-Cap Index Fund Admiral Shares (VIMAX) is the fourth-largest fund holder of ROKU stock, owning 1.07 million shares for a market value of nearly $368 million as of April 30, 2021.

The VIMAX seeks to track an index of medium-sized companies, providing investors with access to broad mid-sized U.S. equities. As a result, the stocks can experience more price fluctuations—called volatility—than those of larger companies using passive management.

The VIMAX has $149.70 billion in assets under management and an expense ratio of 0.05% as of April 30, 2021. The fund's five-year annualized return was 15.32% as of May 31, 2021.

Although the VIMAX has a minimum investment amount of $3,000, Vanguard offers an ETF version called the Vanguard Mid-cap ETF (VO). The VO is similar to the VIMAX but only costs the price of one share as an initial investment requirement.