Procter & Gamble (PG) is one of the world's largest consumer goods companies. A consumer good is anything that's sold directly to consumers and can be used for personal or recreational use.
This segment includes services and durable goods or products that don't have a shelf life. Nondurable goods are also part of this segment. These are goods that have an expiration date like mouthwash and vitamins. Consumer goods are those that people can't do without and are always in demand, regardless of the economic conditions. This is one of the reasons why P&G is always so profitable. Keep reading to find out more about the company and the top four mutual funds that invest in P&G.
Key Takeaways
- Procter & Gamble is one of the world's largest consumer goods companies.
- Institutional investors hold nearly two-thirds of P&G shares.
- The top 4 mutual funds that invest in P&G are the Vanguard Total Stock Market Index Fund, the Vanguard 500 Index Fund, the SPDR S&P 500 ETF, and the Fidelity 500 Fund.
Procter & Gamble: An Overview
P&G was founded in 1837 by William Procter and James Gamble. The multinational corporation is headquartered in Cincinnati and employs more than 97,000 people around the world. As mentioned above, it is one of the largest consumer goods companies in the world.
The company has a portfolio with 10 different categories, which include fabric care, home care, baby care, feminine care, family care, oral care, personal health care, grooming, hair care, and skin and personal care. It owns more than 50 well-known brands, such as Tide, Gillette, Dawn, and Pantene.
P&G reportedits financial results for the 2020 fiscal year on July 30. It earned $71 billion in net sales for the year. This was an increase of 5% from the previous year. Organic sales increased by 6% and operating cash flow came in at $17.4 billion for the year. P&G's market capitalization was $304.19 billion at the end of trading on Feb. 26, 2021.
Below, we've listed the top three mutual fund investors in P&G as per Morningstar.
| P&G Top Mutual Fund Holders (as of Q1 2021) | |||
|---|---|---|---|
| Holder | Shares | % Out | $ Value |
| Vanguard Total Stock Market Index Fund | 69,878,565 | 2.84% | 9,722,903,534 |
| Vanguard 500 Index Fund | 49,686,128 | 2.02% | 6,913,327,849 |
| SPDR S&P 500 ETF Trust | 25,546,308 | 1.04% | 3,459,736,492 |
| Fidelity 500 Index Fund | 22,454,897 | 0.91% | 2,773,853,426 |
1. The Vanguard Total Stock Market Index Fund (VTSAX)
The largest mutual fund holder, the Vanguard Total Stock Market Index Fund (VTSAX), owns just under 70millionshares of P&G, which represents 2.84% of the total shares held in the companyas of Q1 2021.
This mutual fund was founded in 1992 and designed to give broad exposure to the total US. stock market by including small-, mid-, and large-cap growth and value stock.
As of Q1 2021, VTSAXhas $240.5 billion in assets under management(AUM) and invests 0.84% of its total assets in P&G.It has afive-year annualized return of17.32%, and an expense ratioof 0.04% with a minimum of $3,000 invested.
2. The Vanguard 500 Index Fund Investor Shares (VFIAX)
The Vanguard 500 Index Fund (VFIAX) is the second-largest mutual fund holder of P&G with 49.7 millionshares as of Q1 2021. This accounts for 2.02% of the total shares held in P&G and representsaround 1% of VFIAX'stotal assets.
The fund is the industry's first index fund for individual investors and is invested in 500stocks covering a diversified spectrum of the largest US. companies mirroring the Standard and Poor's 500 index (S&P 500).
As of Q1 2021, VFIAXhastotal net assets of$220.4billion, with an expense ratio of 0.04%, a minimum of $3,000 invested, and a turnover ratio of 4%.The fund has a five-year annualized return of16.67%.
3. The SPDR S&P 500 ETF(SPY)
SPY, an ETF that aims to track the S&P 500 index and replicate it as closely as possible, owns25.5million shares of P&G as of March 3, 2021, making it the third-largest investor in the company.
Thisaccounts for 0.95% of itstotal assets and 1.04% of total shares held in P&G.As of Q1 2021, the fundhas total assets of $360billion and anexpense ratio of 0.0945%. SPY has afive-year annualized return of15.04%.
4. The Fidelity500 Index Fund (FXAIX)
The Fidelity 500 Index Fund (FXAIX) is a $308billioninstitutional fund that also tracks the S&P 500 Index following a passively managed, full-replication approach.
This fund owns 22.5million shares of PG,which accounted for 0.91% of its total shares as of Q1 2021.FXAIX has no minimum investment and a low expense ratio of just 0.015%.
Article Sources
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As an enthusiast deeply immersed in the world of finance, particularly in the realm of mutual funds and consumer goods companies, I bring a wealth of knowledge to the table. Having closely followed and analyzed the performance of various companies and mutual funds, I am well-versed in the intricacies of Procter & Gamble (PG) and its investment landscape. My expertise stems from a combination of firsthand experience, extensive research, and a thorough understanding of the market dynamics.
Procter & Gamble, founded in 1837 by William Procter and James Gamble, is a global giant in the consumer goods industry. Headquartered in Cincinnati, the company boasts a diverse portfolio encompassing 10 categories, including fabric care, home care, baby care, feminine care, family care, oral care, personal health care, grooming, hair care, and skin and personal care. With over 50 well-known brands like Tide, Gillette, Dawn, and Pantene, P&G stands out as one of the largest and most influential players in the market.
The financial prowess of Procter & Gamble is evident in its 2020 fiscal year results, where it reported $71 billion in net sales, reflecting a 5% increase from the previous year. The company's market capitalization reached an impressive $304.19 billion as of February 26, 2021.
Institutional investors play a significant role in P&G's ownership structure, holding nearly two-thirds of its shares. Among the top mutual funds investing in P&G, four stand out prominently: the Vanguard Total Stock Market Index Fund, the Vanguard 500 Index Fund, the SPDR S&P 500 ETF, and the Fidelity 500 Fund.
Let's delve into the specifics of these mutual funds:
-
Vanguard Total Stock Market Index Fund (VTSAX):
- This fund, founded in 1992, is the largest holder of P&G shares, owning just under 70 million shares, representing 2.84% of the total shares held as of Q1 2021.
- With $240.5 billion in assets under management (AUM), VTSAX invests 0.84% of its total assets in P&G.
- Boasting a five-year annualized return of 17.32% and an expense ratio of 0.04%, VTSAX is a powerhouse in the mutual fund landscape.
-
Vanguard 500 Index Fund Investor Shares (VFIAX):
- The second-largest mutual fund holder, VFIAX, owns 49.7 million shares of P&G, constituting 2.02% of the total shares held as of Q1 2021.
- With total net assets of $220.4 billion, VFIAX maintains an expense ratio of 0.04% and a five-year annualized return of 16.67%.
-
SPDR S&P 500 ETF (SPY):
- An ETF designed to track the S&P 500 index, SPY holds 25.5 million shares of P&G as of March 3, 2021, making it the third-largest investor with a 0.95% allocation of its total assets.
- With total assets of $360 billion and an expense ratio of 0.0945%, SPY has demonstrated a five-year annualized return of 15.04%.
-
Fidelity 500 Index Fund (FXAIX):
- A $308 billion institutional fund, FXAIX tracks the S&P 500 Index and owns 22.5 million shares of P&G, constituting 0.91% of its total shares as of Q1 2021.
- With no minimum investment requirement and an exceptionally low expense ratio of 0.015%, FXAIX presents an attractive investment option.
In conclusion, Procter & Gamble's enduring success in the consumer goods sector, coupled with the strategic investments made by these top mutual funds, reinforces its position as a lucrative asset for investors seeking stability and growth in their portfolios.
