Top 5 Mutual Fund Holders of General Motors (GM)

In 2019, General Motors Company (NYSE: GM) was the fifth-largest automaker in the world, behind Volkswagen AG (OTC: VWAGY), Toyota Motor Corp. (NYSE: TM), and Renault-Nissan-Mitsubishi. GM famously held the top spot in global auto sales for 77 consecutive years from 1931 to 2007.

Following the 2007-2008 financial crisis, however, GM filed for bankruptcy protection. The company re-emerged following a $50 billion federal bailout and recaptured the title of top automaker in 2011.  Five years later, the company produced a total of just under 10 million vehicles in 2016. In October 2017, Chairman and CEO Mary Barra outlined an all-electric path for GM to achieve zero emissions, announcing that the company would launch at least 20 electric vehicles by 2023. 

General Motors announced its Q2 2020 earnings on July 29, 2020. The global automaker reported $16.78 billion in revenues for the quarter, compared to $36.06 billion over the same period last year, the difference attributable to the global pandemic.

GM returned to the Standard & Poor’s (S&P) 500 on June 6, 2013. As a component of the index, its stock attracts significant investment interest among individual shareholders and mutual funds. Several large mutual funds own significant stakes in the company.

1. Vanguard Total Stock Market Index Fund (VTSMX) 

The Vanguard Total Stock Market Index Fund (VTSMX) is one of the Vanguard Group’s flagship mutual funds. While its S&P 500 Index fund remains popular among many investors, its Total Stock Market Index Fund provides the additional benefits of diversification across mid-, small-, and large-cap stocks. As of Q3 2020, the Vanguard Total Stock Market Index Fund owns 36.1 million shares of GM, which accounts for 2.52% of the company. The fund’s bet on General Motors represents 0.11% of its $872.2 billion portfolio.

VTSMX has a three-year annualized return of 11.53% and an expense ratio of 0.14%. It is closed to new investors.

2. American Funds Washington Mutual Investors Fund (AWSHX)

The American Funds Washington Mutual Investors Funds (AWSHX) uses strict eligibility criteria to screen for companies across a broad array of industries with strong balance sheets and consistent dividends. The fund seeks to be fully invested and avoids companies that primarily derive revenue from alcohol or tobacco products. The fund holds 2.22% of outstanding Verizon shares, which also represent 0.75% of the fund’s $134.4 billion portfolio.

3. Vanguard 500 Index Fund (VFINX)

The Vanguard 500 Index Fund (VFINX) is one of the better-known mutual funds in the world, as well as one of the first to popularize index fund investing. It tracks the performance of the S&P 500 Index after expenses. As of Q3 2020, the fund has 25.8 million shares of GM, accounting for 1.8% of the company. Just 0.12% of the fund’s $459.3 billion portfolio is invested in GM.

VFINX has a three-year annualized return of 12.13% and an expense ratio of 0.14%. It is closed to new investors.

4. American Funds Investment Co. of America Fund (AIVSX)

The $107.6 billion American Funds Investment Company of America Fund (AIVSX) invests primarily in larger, well-established companies that represent a wide cross-section of the U.S. economy. It seeks to provide long-term growth of capital and income, with a focus on future income over high current yield.  The fund is the fourth-largest holder of GM, with 25.7 million shares (1.8%) of the company.

5. American Funds Growth Fund of America (AGTHX)

Rounding out 5th place, with 22.1 million shares, or 1.54% of the company is the American Funds Growth Fund of America (AGTHX). The $253 billion fund seeks opportunities in traditional growth stocks as well as cyclical companies and turnaround situations with significant potential for growth of capital.