Top 5 Biggest Mutual Funds (2024)

There's safety in numbers, the old saying goes, and when it comes to mutual fund investing, it's not a bad principle. The largest mutual funds have trillions in assets under management(AUM), in addition to lower expense ratios, which may improve performance over time. In addition, the biggest mutual funds provide access to premiere money managers who specialize in maximizing your investments on a very granular level (though they'll also charge you fees for this upkeep).

Currently, two companies dominate the domestic mutual fund market: Vanguard and Fidelity. Both offer very robust funds with high growth potential and have trillions under their belt in total assets. If you're looking to cash in on the potential advantages of size in your mutual fund investments, here are the five largest mutual funds.

1. Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX)

• Assets under management: $1.3 trillion (as of Feb. 28, 2021)
• Expense ratio: 0.04% (as of Apr. 29, 2021)
• 1-year performance: 11.67% (as of Mar. 31, 2022)
• 3-year annualized performance: 17.46% (as of Mar. 31, 2022)

For investors willing to invest a minimum of $3,000, the VTSAX fund provides exposure to the entire U.S. equity market: small-, mid-, and large-cap growth and value stocks. Created in 1992, the Vanguard Total Stock Market Index Fund Admiral Shares has more than 4,070 stocks in its holdings, including Apple, Microsoft, Amazon, Alphabet, and Tesla.

For those who can't meet the $3,000 initial investment, Vanguard also offers an exchange traded fund (ETF) called the Vanguard Total Stock Market ETF (VTI). The ETF version is similar to the VTSAX and costs the price of one share.

2. Vanguard 500 Index Fund Admiral Shares (VFIAX)

• Assets under management: $808.8 billion (as of Feb. 28, 2022)
• Expense ratio: 0.04% (as of Apr. 29, 2021)
• 1-year performance: 15.60% (as of Mar. 31, 2022)
• 3-year annualized performance: 18.89% (as of Mar. 31, 2022)

The Vanguard 500 Index Fund Admiral Shares (VFIAX) mirrors the S&P 500 index, offering exposure to 500 of the largest companies in the U.S. stock market across various industries. The 507 stocks within the VFIAX have approximately the same weighting as the stocks within the S&P 500. Some of the top holdings include Apple, Microsoft, Amazon, Alphabet, Tesla, Nvidia, and Berkshhire Hathaway Inc.

The minimum investment requirement is $3,000, but for those who can't meet the initial investment, Vanguard also offers an exchange-traded fund (ETF) called the Vanguard S&P 500 ETF (VOO). The ETF version is similar to the VFIAX and costs the price of one share.

3. Vanguard Total International Stock Index Fund Admiral Shares (VTIAX)

• Assets under management: $385.5billion (as of Feb. 28, 2022)
• Expense ratio: 0.11% (as of Feb. 25, 2022)
• 1-year performance: -1.85% (as of Mar. 31, 2022)
• 3-year annualized performance: 7.76% (as of Mar. 31, 2022)

Vanguard's VTIAX fund tracks the performance of various indexes that contain stocks from developed and emerging markets. The fund excludes the U.S. and holds 7,754 stocks with 25% from emerging markets, nearly 40% from Europe, and nearly 27% from the Pacific region. Some of the top holdings include Taiwan Semiconductor Manufacturing, Nestle SA, Samsung Electronics, and Toyota Motor Corporation.

For those who can't meet the $3,000 initial investment, Vanguard also offers an exchange-traded fund (ETF) called the Vanguard Total International Stock ETF (VXUS). The ETF version is similar to the VFIAX and costs the price of one share.

4. Fidelity500 Index Fund (FXAIX)

• Assets under management: $399billion (as of Mar. 31, 2022)
• Expense ratio: 0.015% (as of April 29, 2021)
• 1-year performance: 15.63% (as of Mar. 31, 2022)
• 3-year annualized performance: 18.91% (as of Feb. 28, 2022)

Fidelity's large-blend fund tracks the S&P 500. As of Dec. 31, 2021, the top ten holdings make up 29.29% of its portfolio, including Apple, Microsoft, Amazon, Meta, and Alphabet. However, FXAIX's expense is one of the lowest in the market and maintains a solid 5-star Morningstar rating.

5. Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX)

• Assets under management: $305.1 billion (as of Feb. 28, 2022)
• Expense ratio: 0.05% (as of Apr. 29, 2021)
• 1-year performance: -4.09% (as of Mar. 31, 2022)
• 3-year annualized performance: 1.69% (as of Mar. 31, 2022)

Vanguard's VBTLX provides investors investment exposure to U.S. investment-grade bonds, including U.S. Treasuries and mortgage-backed securities. The fund's holdings are primarily U.S. government bonds with 66.5% of the fund's weighting, while 3.7% are AAA-rated bonds and 3.1% are AA-rated.

For those who can't meet the $3,000 initial investment for the VBTLX, Vanguard also offers an exchange-traded fund (ETF) called the Vanguard Total Bond Market ETF (BND). The ETF version is similar to the VBTLX and costs the price of one share.