Top 10 Mutual Funds in the U.S. by Assets Under Management
- Vanguard maintains its position as the leading mutual fund manager in the United States.
- Noteworthy Vanguard funds, including the Total Stock Market Index Fund and the 500 Index Fund, are favored for their low expense ratios.
- Fidelity and American Funds are also significant players in the mutual fund landscape, offering competitive options.
- This analysis excludes exchange-traded funds (ETFs) and money market funds, which could distort rankings.
- Important metrics, including total net assets and expense ratios, offer valuable insights for investors.
In this report, we explore the ten largest mutual funds in the United States, ranked by their assets under management (AUM). Vanguard secures the top spot in this domain.
Founded by the renowned John Bogle, Vanguard pioneered the index fund approach, shifting industry paradigms through its inherent advantages. According to Bogle:
“Index funds eliminate the risks of individual stocks, market sectors, and manager selection. Only stock market risk remains.”
As the preeminent mutual fund company, Vanguard is complemented by the presence of Fidelity and American Funds among the larger mutual funds. Capital Group oversees American Funds, which, while smaller than Vanguard and Fidelity, remains a powerful entity in the sector.
Fidelity, established by Edward C. Johnson II, remains a prominent name, still under family management with a substantial ownership stake. Notably, Peter Lynch once helmed the Fidelity Magellan Fund, which was once the largest fund available.
Important to note is that this list does not account for ETFs, money markets, and other purely institutional funds; including these would likely elevate Fidelity’s standing and introduce additional companies with considerable cash and money market fund assets.
The ranking is delineated by total portfolio net assets and share class, which may differ from other sources. The leading mutual funds boast over $1 trillion in total assets.
The Largest Mutual Funds
| Rank | Fund Name | Ticker | Asset Class | Total Net Assets | Expense Ratio |
|---|---|---|---|---|---|
| 1 | Vanguard Total Stock Market Index Fund | VTSAX | Large-Cap Equity | $1.8 Trillion | 0.04% |
| 2 | Vanguard 500 Index Fund | VFIAX | Large-Cap Equity | $1.4 Trillion | 0.04% |
| 3 | Fidelity 500 Index Fund | FXAIX | Large-Cap Equity | $619.4 Billion | 0.015% |
| 4 | Vanguard Total International Stock Index Fund | VTIAX | International Stock | $432.1 Billion | 0.12% |
| 5 | Vanguard Total Bond Market Index Fund | VBLTX | Intermediate-Term Bond | $342.4 Billion | 0.05% |
| 6 | The Growth Fund of America (American Funds) | AGTHX | Active Large-Cap Equity | $297.7 Billion | 0.61% |
| 7 | American Balanced Fund (American Funds) | ABALX | Balanced (Active) | $236.1 Billion | 0.57% |
| 8 | Fidelity Contrafund | FCNTX | Active Large-Cap Equity | $153.0 Billion | 0.39% |
| 9 | Strategic Advisors Fidelity U.S. Total Stock Fund | FCTDX | Fund of Funds | $142.1 Billion | 0.31% |
| 10 | Vanguard Wellington | VWELX | Balanced (Active) | $112.3 Billion | 0.26% |
1. Vanguard Total Stock Market Index Fund
The Vanguard Total Stock Market Index Fund (VTSAX) mirrors the CRSP US Total Market Index, encapsulating a broad spectrum of U.S. equities with a low expense ratio of 0.04% for Admiral Shares. Its diverse portfolio encompasses leading technology firms such as Apple, Microsoft, and Amazon, in addition to a substantial number of small and mid-cap stocks.
- Total Net Assets: $2.3 trillion
- Expense Ratio: 0.04%
- Category: Large-Cap Equity
2. Vanguard 500 Index Fund
The Vanguard 500 Index Fund (VFIAX) replicates the performance of the S&P 500 Index, featuring a low expense ratio of 0.04%. The fund predominantly invests in large-cap equities, including industry titans like Apple and Microsoft, while holding a total of 505 positions.
- Total Net Assets: $1.7 trillion
- Expense Ratio: 0.04%
- Category: Large-Cap Equity
3. Fidelity 500 Index Fund
The Fidelity 500 Index Fund (FXAIX) tracks the S&P 500 Index and is recognized for its extremely low expense ratio of 0.015%. Managed by Geode Capital Management, this fund holds diverse positions within the S&P 500 benchmark.
- Total Net Assets: $857.6 billion
- Expense Ratio: 0.015%
- Category: Large-Cap Equity
4. Vanguard Total International Stock Index Fund
The Vanguard Total International Stock Index Fund (VTIAX) represents the largest non-U.S. fund in this ranking. It tracks the Spliced Total International Index and has an expense ratio of 0.10% for Admiral Shares.
- Total Net Assets: $649.3 billion
- Expense Ratio: 0.10%
- Category: International Stock
5. Vanguard Total Bond Market Index Fund
This bond fund tracks the Spliced Bloomberg U.S. Aggregate Float Adjusted Index, maintaining a low expense ratio of 0.04%. It consists primarily of U.S. Treasuries, demonstrating solid risk management characteristics.
- Total Net Assets: $389.3 billion
- Expense Ratio: 0.05%
- Category: Intermediate-Term Bond
Mutual Funds vs. ETFs: A Comparative Look
Investors often must decide between traditional mutual funds and their ETF counterparts when building a low-cost index portfolio. Vanguard has been instrumental in providing options that mirror identical index portfolios in both formats.
Frequently Asked Questions
What is the largest mutual fund in the U.S., and how much does it manage?
The Vanguard Total Stock Market Index Fund (VTSAX) holds the title of the largest mutual fund in the U.S., managing over $1.8 trillion in assets.
Why do index mutual funds dominate the largest mutual funds list?
Index funds are favored due to their low fees, wide diversification, and avoidance of individual stock risk. This combination has made them attractive for both retail and institutional investors.
Disclosure: The author is an investor in some of the funds mentioned.
Chief Editor of Quincy City Beat — Quincy, MA's independent investigative newspaper covering Greater Boston and the entire Commonwealth of Massachusetts with fearless public accountability and free access for all readers.
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