FedEx Corporation (NYSE: FDX) is best known for its express delivery service, but the company also operates ground shipping and freight services. With 490,000 team members, FedEx moves shipments to more than 220 countries and territories globally.
In addition to deliveries and time-sensitive express services, the company has FedEx Offices brick and mortar locations that provide shipping, printing, signs, and computer rental services to individuals and businesses.
In the company’s 2021 fiscal year, FedEx handled a daily volume of 16.5 million packages and earned $84 billion in revenue.Below are the five largest mutual fund investors in FedEx stock, along with their five-year annualized returns and expense ratios.
|Top Mutual Fund Holders of FedEx Stock|
|Holder||Shares||Market Value||Date Reported|
|Dodge & Cox Stock Fund||10.8 million||$1.6 billion||Sept. 30, 2022|
|Vanguard PRIMECAP Fund Admiral Shares||9.06 million||$1.3 billion||Sept. 30, 2022|
|Vanguard Total Stock Market Index Fund Admiral Shares||6.70 million||$1.95 billion||Sept 30, 2021|
|Fund SPDR S&P 500 ETF Trust||6.70 million||1.95 billion||Sept. 30, 2022|
|Vanguard 500 Index Fund Admiral Shares||5.40 million||$804 million||Sept. 30, 2021|
1. The Dodge & Cox Stock Fund (DODGX)
The Dodge & Cox Stock Fund (DODGX) is the biggest fund holder of FedEx stock, owning about 10.8 shares for a market value of $1.6 billion at the end of September 2021.
The Dodge & Cox Stock Fund is an actively managed stock fund that invests in undervalued companies with favorable long-term outlooks. Portfolio managers seek to earn growth of capital while generating income. The fund’s returns are benchmarked to the return of the S&P 500 Index.
As of Sept. 30, 2022, the fund had $88.11 billion in assets under management with a five-year annualized total return of 7.29% and an expense ratio of 0.52%. The DODGX requires a minimum investment of $2,500.
The Vanguard PRIMECAP Fund Admiral Shares (VPMAX) is the mutual fund with the second-largest equity holding in FedEx shares. VPMAX owns nearly 9.06 million shares for a market value of $1.3 billion as of Sept. 30, 2022.
Vanguard’s VPMAX is an actively managed stock growth fund that invests primarily in U.S. equity securities. The fund’s objective is to achieve long-term growth of principal. The fund’s benchmark is the Standard & Poor’s 500 Index (S&P 500 Index).
As of the end of September 2022, the fund had a five-year annualized total return of 9.40, an expense ratio of 0.04%, and assets under management (AUM) of nearly $56 billion. The fund requires a minimum investment of $3,000, but it is now closed to new investors.
The Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) is the third-largest fund holder of FedEx, owning more than 6.7 million shares for a market value of $1.95 billion as of Sept. 30, 2021.
The VTSAX is a passively managed stock index fund that invests in the common stock of U.S. companies in direct relation to their weightings in the CRSP U.S. Total Market Index. The index is composed of more than 3,700 stocks that trade on the New York Stock Exchange (NYSE) and Nasdaq.
As of Sept. 30, 2022, the fund had a five-year annualized total return of 9.79%, an expense ratio of 0.04%, and approximately $1.1 trillion in assets under management.
Although the VTSAX requires a minimum investment of $3,000, Vanguard offers an ETF version called the Vanguard Total Stock Market ETF (VTI), which has a lower initial investment requirement of the price of one share.
4. Fund SPDR S&P 500 ETF Trust
The Fund SPDR S&P 500 ETF Trust (SPY) has the fourth-largest mutual fund holding in FedEx. Launched in 1993, SPY lays claim to being the first exchange-traded fund listed in the U.S. As such, it is a passively-traded fund that aims to track the performance of the S&P 500.
The fund owns more than 6.7 million shares of FedEx with a market value about $1.95 billion as of Sept. 30, 2022.
As of Nov. 10, 2022, SPY had about 368.2 billion in assets under management and a five-year annual return of 10.29%. Its expense ratio is .00945.
The Vanguard 500 Index Fund Admiral Shares (VFIAX) rounds out the top five list of mutual fund holders of FedEx stock, owning slightly more than 5.4 million shares for a market value of $804.2 billion as of Sept. 30, 2022.
The Vanguard 500 is a passively managed stock index fund that tracks the S&P 500 Index and has $371 billion in assets under management. The fund has a five-year annualized total return of 10.40% and an expense ratio of 0.04% as of Sept. 30, 2022.
The VFIAX has a $3,000 minimum investment requirement. However, Vanguard offers an ETF called the Vanguard S&P 500 ETF (VOO), which only requires the price of one share as its initial investment requirement.
What Does FedEx Do?
FedEx Corp. is an express delivery service. It delivers packages door to door to and from about 220 countries and territories. The company claims to have invented express shipping. Originally called Federal Express, it started operations in 1973.
In recent years, FedEx has branched out into related areas such as logistics and small business services.
FedEx’s main competitor is UPS. The two companies are neck-to-neck in terms of size, but they are by far the dominant players in the business of global express delivery.
How Is FedEx Doing in 2022?
Well, it’s been a rocky year for everyone, hasn’t it? Fuel price increases, a slowing global economy, and supply chain disruptions in 2022 were particularly relevant to the shipping industry.
Its fourth-quarter results, released in June 2022, recorded improved operating income primarily due to “revenue management” improvements that were offset by economic pressures. The company reported income of $24.4 billion for the fiscal year compared to $22.6 billion in its 2021 fiscal year.
FedEx (FDX) stock shares ranged between $141.92 and $266.79 in the 52 weeks ending Nov. 18, 2022.
Why Is It Relevant Which Mutual Funds Invest in FedEx?
When considering investing in a stock, you may consider it relevant that a big, actively-managed fund like the Dodge & Cox Stock Fund (DODGX) or the Vanguard PRIMECAP Fund Admiral Shares (VPMAX) has selected FedEx (or any of its other holdings) as a prime candidate for its portfolio of holdings.
It may be less relevant in the case of a passively-managed mutual fund or ETF. It isn’t their job to pick stocks. Their job is to mirror an index in order to duplicate its returns.