One Investor Is The Largest Owner Of Two-Thirds Of U.S. Companies (2024)

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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Vanguard And The Dwarfs

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.

S&P 500 Companies Vanguard Owns The Most Of

CompanySymbolVanguard's % ownedStock YTD % ch.Sector
CBRE Group (CBRE)16.9%-19.7%Real Estate
Extra Space Storage (EXR)16.7-6.7Real Estate
Iron Mountain (IRM)16.63.1Real Estate
Mid-America Apartment Communities (MAA)16.4-18.2Real Estate
Essex Property Trust (ESS)16.3-15.8Real Estate
AvalonBay Communities (AVB)16.3-13.6Real Estate
Weyerhaeuser (WY)16.3-10.5Real Estate
Host Hotels & Resorts (HST)16.312.0Real Estate
Ventas (VTR)16.32.4Real Estate
SBA Communications (SBAC)16.3-10.1Real Estate
Sources: IBD, S&P Global Market Intelligence
Follow Matt Krantz on Twitter @mattkrantz

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One Investor Is The Largest Owner Of Two-Thirds Of U.S. Companies (2024)

FAQs

One Investor Is The Largest Owner Of Two-Thirds Of U.S. Companies? ›

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.

Who is the biggest investor in the US? ›

List of the Largest Investors with offices in United States
  • GIC | $360B.
  • The Carlyle Group | $201B.
  • Goldman Sachs Merchant Banking Division | $150B.
  • TPG Capital | $107B.
  • IFM Investors | $101B.
  • Bezos Expeditions | $100B.
  • Silver Lake | $79B.
  • Intermediate Capital Group | $50B.

Who are the biggest owners of corporate America? ›

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.

Who owns most of the US stock market? ›

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.

Who owns the most stock in a company? ›

Most majority shareholders are company founders. In older, more established companies, majority shareholders are frequently related to company founders.

Who is the number 1 investor? ›

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.

Who is the richest investor in the USA? ›

The Oracle of Omaha

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%).

Who owns 90% of the stock market? ›

The top 10% own nearly 90% of the stocks while the bottom 90% owns almost 60% of the housing market.

Who owns most companies in us? ›

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.

Who is the stock market king of America? ›

Warren Edward Buffett was born on August 30, 1930 in Omaha, Nebraska, as the second of three children and the only son of Leila (née Stahl) and Congressman Howard Buffett.

Who really owns Vanguard? ›

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. With no outside owners to satisfy, we focus squarely on meeting the investment needs of our clients.

Who owns 80% of stock? ›

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.

Who does BlackRock own? ›

How many companies does BlackRock own? As of March 31, 2024, BlackRock's portfolio consisted of 5,283 holdings. The top five holdings included Microsoft (5.3%), Apple (4.2%), Nvidia (3.8%), Amazon (2.7%), and Meta Platforms (1.8%).

Who is the biggest investor in the world? ›

Warren Buffett is often considered the world's best investor of modern times.

Who owns BlackRock and Vanguard? ›

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.

Who is the greatest value investor? ›

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.

Who has the largest investment fund? ›

Norway's sovereign wealth fund, the world's largest, was established in the 1990s to invest the surplus revenues of the country's oil and gas sector. To date, the fund has put money in more than 8,500 companies in 70 countries around the world.

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