With e-commerce sales soaring in China, shares of online retail giant Alibaba Group Holding Ltd. (BABA) have risen steadily and it's not surprising that there are a number of options for the investor interested in mutual funds and exchange-trade funds (ETF) holding Alibaba.
Here are the top five funds holding shares in this growing Chinese online retailer.
- After a record-setting IPO (at the time) in 2014, Alibaba has grown to become one of the world's largest internet marketplaces.
- U.S. investors looking to get a piece of this Chinese-based tech company can look to one of several mutual funds and ETFs that hold BABA shares.
- Here, we look at the top 5 funds in terms of Alibaba stock ownership.
1. Vanguard Primecap Fund (VPMCX)
Launched in 1984, Vanguard's Primecap fund (VPMCX) is a large- and mid-capitalization growth fund managed with a long-term perspective, low turnover, and a well-established investment strategy. One unique feature of the Primecap fund is that it employs multiple portfolio managers who independently manage a portion of the fund, which provides diversification of thought.
With $76 billion in total assets and a 0.38% management fee, VPMCX is the largest fund holder of BABA shares, owning 9.6 million shares worth $1.42 billion, as of February 2022. Alibaba thus makes up just under 2% of the portfolio.
2. Dodge & Cox International Fund (DODFX)
Dodge & Cox is an actively managed mutual fund provider founded in 1930, amidst the Great Depression. The philosophy that guides the management of their investment portfolios is built on traditional principles, with a long-term horizon, a rigorous price discipline, and conducting independent in-house research.
The International fund (DODFX) primarily in a diversified portfolio of equity securities issued by mid- to large-sized non-U.S. companies, which may include emerging market countries. With $44.1 billion in AUM and a 0.63% management fee (as of February 2022), it holds 5.25 million BABA shares worth $817 million, making it the second-biggest fund holder.
3. KraneShares Trust ETF (KWEB)
The KraneShares Trust (KWEB) follows publicly traded internet companies based in China. Also called KraneShares CSI China Internet ETF, the trust manages $7.1 billion in net assets, investing the majority of its funds in the technology sector.
Alibaba stock comprises 6.3% of KraneShares’ portfolio, the fourth-largest holding in the portfolio. The ETF is the third largest fundholder of BABA and owns just over 8 million shares that had a market value of about $600 million as of February 2022.
4. T. Rowe Price Science & Technology Fund (PRSCX)
The T, Rowe Price Science & Technology Fund (PRSCX) invests in technology companies with the following attributes: potential for real earnings and revenue growth, leading or growing market share, diversify security and industry exposure to reduce volatility. As of February 2022, the fund holds over $7.9 billion in AUM and charges a 0.77% management fee.
It is the fourth-largest fund holder of BABA, with 3.7 million shares worth more than half a billion dollars.
5. T. Rowe Price Blue Chip Growth Fund (TRBCX)
Another T. Rowe Price mutual fund takes fifth place. TRBCX invests in large and medium-sized blue-chip companies that have the potential for above-average earnings growth and are well established. With $88.7 billion under management, the 2.8 million BABA shares make up just around half a percent of the overall portfolio.
Who Owns Alibaba?
Japan's Softbank remains the largest single shareholder of Alibaba, thought to own around one-quarter of BABA shares. Alibaba co-founder and CEO Jack Ma was previously the largest individual shareholder of the company for several years. However, Ma sold off much of his ownership stake in Alibaba in 2019 at the urging of the Chinese government.
Is Alibaba Larger Than Amazon?
No, Amazon is the larger of the two e-commerce giants. Amazon's $1.4 trillion market cap is more than five times bigger than Alibaba's $268 billion. Amazon sales also beat Alibaba by a factor of 4x in 2021.
Is BABA in the S&P 500 Index?
No. Despite being a large and important global e-commerce company, Alibaba shares cannot be included in the S&P 500 index because the S&P only includes companies that are based in the United States. While BABA shares traded on American exchanges, they are American Depositary Receipts (ADRs), and the company is based in China.
What Is the Institutional Ownership of BABA?
As of Q1 2022, U.S. institutional ownership accounts for around 17.75% of BABA shareholding.