Salesforce.com Inc. (NYSE: CRM) is a provider of software-based customer relationship management (CRM) solutions to large and small corporations. An early adapter to cloud-based computing, the company was an innovator of selling software as a service that is accessed online, instead of being hosted on a client’s computer system.
In 2020, Salesforce earned $17.1 billion in annual revenue and had a market capitalization of $195.44 billion as of March 19, 2021. Its main competitor is Oracle Corp. (NYSE: ORCL), whose chair, Larry Ellison, was an early investor in Salesforce.com.
Over the years, CRM has expanded the range of its software offerings to serve the needs of companies of all sizes. On March 20, 2018, the company announced its plan to acquire MuleSoft, Inc. (MULE) for $6.5 billion, which represented a 36% premium over the closing price on March 19, 2018. The acquisition was completed on May 2, 2018.
Salesforce.com has been a popular holding for many mutual fund portfolio managers. Below are the five largest mutual fund investors in the company’s stock, along with their five-year annualized performance and expense ratios.
Vanguard Total Stock Market Index Fund Admiral Shares
Apr 30, 2021
Mar 31, 2021
Vanguard 500 Index Fund Admiral Shares
Apr 30, 2021
SPDR S&P 500 ETF Trust
May 27, 2021
Fidelity 500 Index Fund
Apr 29, 2021
Source: Yahoo! Finance
The largest mutual fund holder of Salesforce stock is the Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX). The fund is passively managed and tracks the CRSP US Total Market Index, which includes all companies regularly traded on the NASDAQ and New York Stock Exchange (NYSE).
The VTSAX owns more than 24.60 million shares of CRM with a market value of $5.67 billion as of April 30, 2021.
The VTSAX had approximately $1.2 trillion in assets under management, an expense ratio of 0.04%, and a five-year annualized return of 17.67% as of April 30, 2021. The minimum investment requirement is $3,000.
Vanguard also offers an exchange traded fund (ETF) called the Vanguard Total Stock Market ETF (VTI), which has similar holdings to the VTSAX. However, the VTI has a lower initial investment requirement, which is the price of one share.
The second-largest fund owner of Salesforce is the Fidelity Contrafund (FCNTX). The fund invests in common stocks that are poised for growth and have a market value of over $10 billion.
The Fidelity Contrafund invests 2.9% of its fund in CRM and owns more than 19 million shares representing more than $3.8 billion in market value as of March 31, 2021.
The Fidelity Contrafund has nearly $119 billion in assets under management and an expense ratio of 0.86% as of March 01, 2021. The five-year annualized average return was 20.71% as of April 30, 2021.
The Vanguard 500 Index Fund Admiral Shares (VFIAX) is the third-largest fund holder of Salesforce.com Inc. The VFIAX is a large-blend growth fund that tracks the performance of the S&P 500 Index.
The VFIAX owns more than 18.90 million shares of CRM for a market value of $4.30 billion as of April 30, 2021. The fund has $732 billion in assets under management and an expense ratio of 0.04%. The five-year annualized return was 17.38% as of April 30, 2021.
Although the VFIAX has a $3,000 minimum initial investment requirement, Vanguard offers an ETF version called the Vanguard S&P 500 ETF (VOO), which only costs the price of one share as an initial investment.
The SPDR S&P 500 ETF Trust (SPY) is the fourth-largest fund holder of CRM shares. The SPY is managed by State Street Global Advisors and owns approximately 9.3 million shares of CRM for a market value of $2.10 billion as of May 27, 2021. The SPY has $353.30 billion in AUM and a five-year annualized return of 17.25% as of April 30, 2021. The expense ratio for the ETF is 0.0945%.
The Fidelity 500 Index Fund (FXAIX) is the fifth-largest fund holder of CRM, owning nearly $7.60 million shares for a $1.78 billion market value as of April 29, 2021.
The FXAIX tracks the S&P 500 and has $328 billion in AUM as of March 31, 2021. The fund has an expense ratio of .015% and a five-year annualized return of 14.41% as of April 30, 2021.