- INVESTING
- GUIDE TO MUTUAL FUNDS
Procter and 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 PandG is always so profitable. Keep reading to find out more about the company and the top four mutual funds and ETFs that invest in PandG.
KEY TAKEAWAYS
- Procter and Gamble is one of the world's largest consumer goods companies.
- Institutional investors hold over 68% of PandG shares as of June 2024.
- The top 4 mutual funds and ETFs that invest in PandG are the Vanguard Total Stock Market Index Fund, the Vanguard 500 Index Fund, the Fidelity 500 Fund, and the SPDR SandP 500 ETF.
Procter and Gamble: An Overview
PandG was founded in 1837 by William Procter and James Gamble. The multinational corporation is headquartered in Cincinnati and employed more than 107,000 people around the world as of 2023. 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.
PandG reported its financial results for the 2023 fiscal year on July 28, 2023. The company had $14.7 billion of net earnings generated from $82 billion in net sales. During fiscal 2023, the company paid over $9 billion in dividends, and made $7.4 billion of share repurchases. PandG's market capitalization was $394.28 billion on the morning of June 10, 2024.
Below, we've listed the top four mutual fund and ETF investors in PandG.
The 1. The Vanguard Total Stock Market Index Fund (VTSAX)
The largest mutual fund holder, the Vanguard Total Stock Market Index Fund (VTSAX), owns 73.95 million shares of PandG, which represents 3.13% of the total shares held in the company as of March 31, 2024.
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 April 30 2024, VTSAX has $355.4 billion in assets under management (AUM) and invests 0.79% of its total assets in PandG. It has a five-year annualized return of 14.90% as of May 31, 2024, and an expense ratio of 0.04% with a minimum of $3,000 invested.
The 2. The Vanguard 500 Index Fund Investor Shares (VFIAX)
The Vanguard 500 Index Fund (VFIAX) is the second-largest mutual fund holder of PandG with 59.3 million shares as of March 31, 2024. This represents a 2.51% ownership stake in PandG and is 0.91% of VFIAX's total assets.
The fund is the industry's first index fund for individual investors and is invested in 500 stocks covering a diversified spectrum of the largest US. companies mirroring the Standard and Poor's 500 index (SandP 500).
As of April 30, 2024, VFIAX has total net assets of $484.2 billion, with an expense ratio of 0.04%, and a minimum investment of $3,000. As of December 31, 2023, the fund's turnover ratio was 2.2%. The fund has a five-year annualized return of 15.76% as of May 31, 2024.
The 3. The Fidelity 500 Index Fund (FXAIX)
The Fidelity 500 Index Fund (FXAIX) is a passive mutual fund that invests at least 80% of its assets in SandP 500 stocks according to fund information. However, looking at the details it seems to follow the SandP 500 far more closely than just 80%. It can be viewed like any other SandP 500 tracking fund. The fund has about $540.14 billion under management as of May 31, 2024.
As of April 30, 2024, the fund owns 28.5 million shares of PG. Its shares give it a 1.21% ownership stake in Procter and Gamble. FXAIX has no minimum investment and a low expense ratio of just 0.015%.
The 4. The SPDR SandP 500 ETF (SPY)
SPY, an ETF that aims to track the SandP 500 index and replicate it as closely as possible, owns 27.97 million shares of PandG as of April 30, 2024, making it the fourth-largest investor in the company.
The fund has 0.87% of its total assets invested in PandG as of June 7, 2024. The fund holds 1.18% of Procter and Gamble's shares as of April 30th, 2024. As of June 7, 2024, the fund has $533.64 billion in assets under management and an expense ratio of 0.0945%. SPY has a five-year annualized return of 15.19%, calculated on May 31, 2024.