Top 4 Mutual Fund Holders of Microsoft (MSFT)


Microsoft Corporation (NYSE: MSFT) was shaped in 1975 by Bill Gates and Paul Allen, as they rushed to create an working system for the Altair 8800 microcomputer. The Altair 8800 was arguably the primary microcomputer that kicked off the pc revolution, and with it got here Altair Basic, a licensed model of Microsoft Basic. Microsoft Basic was the corporate’s first licensed industrial product, because it licensed varied variations to Apple Computers (NASDAQ: AAPL), Commodore, and IBM (NYSE: IBM). Revenues for the corporate totaled simply $16,005 in 1976.

The iconic tipping level got here when IBM was planning to launch a private laptop however lacked an working system. While Microsoft didn’t have an working system, Bill Gates efficiently bluffed IBM to win the contract on Aug. 12, 1981. Rather than program one from scratch, Gates negotiated a deal to buy the 86-DOS product from Seattle Computer Products for lower than $100,000 and licensed it to IBM for a royalty charge on each PC it might produce. The IBM PC launch turned out to be an unprecedented success, catapulting Microsoft’s product sales to $55 million in 1983. Microsoft launched the primary iteration of its Windows franchise in 1985.

The firm went public in 1986 at $21 per share. Since then, Microsoft has grown right into a persistently robust income performer with $143 billion in income as of the fiscal yr ending June 30, 2020.

Microsoft’s hottest manufacturers embrace Windows, Office 365, Bing, MSN, Skype, Exchange, and cloud functions Azure, SQL Server, and .NET. Microsoft is a element within the massive three benchmark indexes: Dow Jones Industrial Average (DJIA), Standard and Poor’s 500 (S&P 500), and the Nasdaq-100 index.

Here are the 4 largest mutual funds invested in Microsoft inventory.

Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX)

Microsoft’s prime mutual fund holder is the Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX). The fund holds greater than 212 million shares with a market worth of greater than $53.70 billion as of April 30, 2021.

The VTSAX gives broad publicity to the U.S. inventory market with $1.2 trillion in property beneath administration (AUM). The VTSAX has a five-year annualized return of 17.67%, and the fund’s expense ratio is 0.04% as of April 30, 2021.

The VTSAX has a minimal preliminary funding quantity of $3,000, however Vanguard additionally presents an exchange traded fund (ETF) referred to as the Vanguard Total Stock Market ETF (VTI). The VTI is just like the full market fund however solely prices the worth of one share as an preliminary funding.

Vanguard 500 Index Fund Admiral Shares (VFIAX)

Microsoft’s second-largest mutual fund holder is the Vanguard 500 Index Fund Admiral Shares (VFIAX), which holds greater than 155 million shares for a market worth of $39.10 billion as of April 30, 2021.

The Vanguard 500 tracks the Standard and Poor’s 500 Index (S&P 500) by investing in 500 of the most important U.S. firms throughout varied sectors. With almost $732 billion in property beneath administration, the VFIAX has earned a five-year annualized return of 17.38%. The fund has an expense ratio of 0.04% as of April 30, 2021.

The minimal funding requirement for Vanguard’s VFIAX is $3,000, however an ETF model is accessible referred to as the Vanguard S&P 500 ETF (VOO). Although the holdings inside the VOO ETF are just like the VFIAX, it has a decrease preliminary funding requirement, which is the associated fee of one share.

SPDR S&P 500 ETF (SPY)

The SPDR S&P 500 ETF Trust (SPY) is Microsoft’s third-largest mutual fund holder of the corporate’s inventory. Managed by State Street Global Advisors, the SPY tracks the S&P 500 Index. The SPY ETF owns almost 76 million shares for a market worth of roughly $18.70 billion as of May 20, 2021.

The SPY has $353.Three billion in property beneath administration and an expense ratio of .0945% as of May 20, 2021. The fund’s five-year annualized return is 17.25% as of April 30, 2021.

The Fidelity 500 Index Fund (FXAIX)

The Fidelity 500 Index Fund (FXAIX) is Microsoft’s fourth-largest mutual fund holder. The Fidelity 500 tracks the S&P 500 Index with $328 billion in property beneath administration. The FXAIX owns greater than 69 million shares of Microsoft, representing almost $16.30 billion in market worth as of March 31, 2021. Fidelity’s FXAIX has no funding minimal, an expense ratio of .015%, and its five-year annualized return is 17.41% as of April 30, 2021.



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