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Founded in 2003, Tesla Motors (TSLA) has captured the imagination of customers and investors alike with its line of electric vehicles. Through a series of production delays, lawsuits, and tweets by co-founder and CEO Elon Musk, the company has taken investors along for a rollercoaster ride.
Here are the three largest mutual funds invested in Tesla as of December 2021.
Key Takeaways
- Tesla is a well-known electric vehicle company founded in 2003 by a group of engineers and business people and led by CEO Elon Musk.
- While Musk remains among the top shareholders of the firm, 73% of the company’s float is held by institutional investors.
- Here, we take a look at the top three mutual funds that have the most TSLA shares.
The American Funds Growth Fund of America (AGTHX)
The American Funds Growth Fund of America (AGTHX) is currently the largest mutual fund invested in Tesla. With 26.6 million shares under its belt in April 2021, AGTHX holds 2.77% of the company’s total stock. AGTHX has net assets of $285 billion according to Morningstar, with 5.8% of its portfolio invested in Tesla, making it the fund’s largest holding as well.
The fund’s main investment objective is to provide long-term growth of capital, with a secondary objective of securing future income. The American Funds New Perspective Fund diversifies its investments among blue-chip companies worldwide, emphasizing multinational and global companies. The fund primarily invests in common stocks, convertibles, preferred stocks, bonds, and cash. As of December2021, AGTHX has a five-year annualized return of 20.4%. The fund has a 0.61% expense ratio and a minimum investment of $250.
The Vanguard Total Stock Market Index (VTSAX)
The second-largest mutual fund holding Tesla shares is the Vanguard Total Stock Market Index (VTSAX) fund. As of April 2021, it owned 21.4 million shares of Tesla, which amounts to 2.23% of the company’s total shares. VTSAX’s ownership in Tesla accounts for around 2% of the fund’s total assets. As of December 2021, the fund has $293 billion in assets under management (AUM) and requires a minimum of $3,000 to invest.
Established in April 1992, the fund’s primary objective is to track the performance of its benchmark index, the CRSP US Total Market Index. This objective is accomplished by investing in equity securities of large-, mid-, and small-cap companies across both growth and value investing styles. The fund invests primarily in U.S. stocks. VTSAX has a five-year annualized return of 17.46% and an expense ratio of just 0.04%.
The Vanguard 500 Index Fund (VFIAX)
Vanguard returns again in the third-place spot with another 19.73 million shares–or 2.4% of the fund’s portfolio, which is also its weight in the S&P 500 index fund. VFIAX seeks long-term growth of capital by tracking the S&P 500 stock market index. It offers diversified, low-turnover exposure to U.S. equity markets with a very low 0.04% expense ratio and a minimum investment required of $3,000.
As of December 2021, the $220 billion fund’s 5-year return is 17.85%.
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