Want to know who owns Corporate America? It's not Bill Gates or Elon Musk. It's Vanguard.
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Thanks to the surging popularity of its index funds, Vanguard is now the No. 1 owner of 330 stocks in the S&P 500, or two-thirds of the world's most important collection of stocks, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSmith. No other investor comes remotely close. BlackRock (BLK) is a remote second-top owner, ranking as the No. 1 investor in just 38 S&P 500 companies.
This fact underscores just how powerful the ETF and mutual fund powerhouse has become in markets. Its inflow of funds from investors stand to sway markets miles beyond most other forces.
"BlackRock plus Vanguard consistently take in about 64% of all the cash which is in line with their (asset under management) market share, said Eric Balchunas, ETF senior analyst at Bloomberg. "(And there's) no slowing down the duopoly despite the onslaught of competition from some pretty massive companies."
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It's hard to understate just how much of a force Vanguard is in markets. The ETF market shows its dominance the most clearly.
So far this year, investors poured $124.3 billion into Vanguard ETFs, or more than a third of the total, Balchunas says. BlackRock is second with inflows of just $89.6 billion, or 27%. And that's just in ETFs. Keep in mind Vanguard is also the largest provider of mutual funds.
All told Vanguard controls total assets of $4.6 trillion, or 26.4% of the fund family universe, Morningstar says. That's No. 1 by far. Fidelity is a distant No. 2 in terms of total fund assets at $2.3 trillion, or 12.9% of the total.
Vanguard's dominance is putting it into an extreme position of power at many S&P 500 companies.
Where Vanguard Places Its Biggest Bets
Thanks to Vanguard's massive asset base, it's the voice that matters most among investors. And it holds huge sway in the real-estate sector. All 10 of the companies Vanguard holds the largest positions in are in the real estate sector.
The fund company owns 15% or larger stakes of more than 20 companies in the S&P 500. Its very top position based on the percentage of company owned is real estate firm CBRE Group (CBRE). Vanguard owns nearly 17% of the company. BlackRock is the No. 2 holder with 10.2% of the company. The stock, this year, though hasn't worked out all that well for Vanguard. Shares of the company are down 20% this year.
CBRE, though, is a classic type of stock institutions like. It's in the relatively stable commercial real estate business. The company's profit is expected to rise every year from 2022 through 2026. This year, profit is seen rising more than 8% to $6.29 a share. Analysts rate the stock an outperform. They think the stock will be worth 100.63 a share in 12 months, or nearly 16% more than it is now.
Vanguard is also the biggest wheel at Extra Space Storage (EXR). The fund company owns 16.7% of the real estate firm. It's also an institutional style company like CBRE. The Salt Lake City real estate company runs nearly 2,000 self-storage centers in 40 U.S. states. It's a steady-as-it-goes business, too. Profit is seen rising every year from 2022 through 2025. And the stock is holding up better than many. It's down just 6.8% on the year and yields 2.9%.
Is Vanguard always right? Not even close. But when the market has a participant of this size, you need to pay attention to it.
It's Vanguard. Thanks to the surging popularity of its index funds, Vanguard is now the No.1 owner of 330 stocks in the S&P 500, or two-thirds of the world's most important collection of stocks, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSmith.
The richest Americans own the vast majority of the US stock market, according to Fed data. The top 10% of Americans held 93% of all stocks, the highest level ever recorded.
The fast-growing index sector, on the other hand, is highly concentrated. It is dominated by just three giant American asset managers: BlackRock, Vanguard and State Street – what we call the Big Three. Lower fees aside, the rise of index funds has entailed a massive concentration of corporate ownership.
The top 10% own the majority of financial assets in this country. And the top 0.1% owns a ridiculous amount of that wealth. Housing market wealth is much more spread out than the stock market: The top 10% own nearly 90% of the stocks while the bottom 90% owns almost 60% of the housing market.
Warren Buffett is widely considered the greatest investor in the world. Born in 1930 in Omaha, Nebraska, Buffett began investing at a young age and became the chairman and CEO of Berkshire Hathaway, one of the world's largest and most successful investment firms.
93-year-old Warren Buffett heads the list. The chairman and CEO of Berkshire Hathaway has a net worth of $128.7 billion. Buffett's Berkshire Hathaway portfolio is 62% invested in only three stocks: Apple (42.9%), Bank of America (10.2%) and American Express (9.1%).
One of either Blackrock, Vanguard, or State Street is the largest shareholder in 88% of S&P 500 companies. They are the three largest owners of most DOW 30 companies. Overall, institutional investors (which may offer both active and passive funds) own 80% of all stock in the S&P 500.
While more than half of U.S. adults own stock, most don't own much. The wealthiest 1% holds 49% of stocks, worth $19.73 trillion. If you expand to the top 10%, that group holds 86.9% of stocks, which have a value of $34.7 trillion.
Since 1970, Buffett has presided as the chairman and largest shareholder of Berkshire Hathaway, one of America's foremost holding companies and world's leading corporate conglomerates.
Larry Fink is the founder, CEO and chairman of powerhouse investment management firm BlackRock, one of the world's largest asset managers. He and seven partners founded BlackRock in 1988. Originally it was part of The Blackstone Group. BlackRock was spun off from Blackstone in 1994 and went public in 1999.
Vanguard set out in 1975 under a radical ownership structure that remains unique in the asset management industry. Our company is owned by its member funds, which in turn are owned by fund shareholders.
BlackRock and Vanguard are the world's largest asset managers with a combined R309 trillion in assets under management (AUM), and they own stakes in most of the world's biggest businesses.
The share of equities held by people who are at or near retirement age (55+) has climbed to about 80%, up from 60% two decades ago, according to an analysis of Federal Reserve data by Rosenberg Research.
Fifteen S&P 500 stocks — including Apple (AAPL), Microsoft (MSFT) and Alphabet (GOOGL) — are the top wealth creators in the past 10 years, says a new analysis from Morningstar. They generated nearly $16 billion in total wealth in that time. That's a whopping amount of wealth in just a small group of stocks.
Popularly known as the “Warren Buffett of India,” Rakesh Jhunjhunwala is one of the greatest stock market investors India has ever seen. Born on July 5, 1960, Rakesh Jhunjhunwala was a stock market veteran. His father was an Income Tax Officer.
1. Who is World's No 1 investor? Warren Buffett is often regarded as one of the most accomplished US global investors ever, having amassed great wealth and earned the respect of various world leaders and heads of state.
Who owns BlackRock? BlackRock is not owned by a single individual or company. Instead, its shares are owned by a large number of individual and institutional investors. The biggest institutional shareholders such as The Vanguard Group and State Street are merely custodians of the stock for their clients.
Warren Buffet is arguably the most famous investor of all time. Even people who don't invest have heard of him. And Buffett remains a value investor at heart. He was influenced by Benjamin Graham and pays close attention to price when buying.
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