Southwest Airlines Co. (NYSE: LUV) is North America’s third-largest airline. It has more than 4,000 daily flights to over 100 destinations in North America, Central America and the Caribbean. The airline is known for discount fares and having the world’s largest fleet of Boeing 737 aircraft.
Southwest has annual revenues of $21.2 billion and a market-cap of $31.6 billion. Mutual fund and institutional investors own about 80% of Southwest’s common stock. The five largest mutual fund investors collectively own 12.96% of outstanding shares.
Vanguard PRIMECAP Inv (“VPMCX”)
The Vanguard PRIMECAP Inv (“VPMCX”) is an actively managed large- and mid-cap stock fund. The fund’s objective is the long-term appreciation of capital. The fund’s benchmark is the Standard & Poor’s 500 Index (S&P 500 Index), and it outperforms the index significantly.
The fund has a five-year annualized total return of 19.79%, an expense ratio of 0.39%, assets under management (AUM) of $62.2 billion and a five-star Morningstar rating. The fund owns 34,011,000 shares of Southwest’s common stock. The fund is closed to new investors.
Vanguard Total Stock Mkt Idx Inv (“VTSMX”)
The Vanguard Total Stock Mkt Idx Inv (“VTSMX”) is a passively managed stock index fund. It seeks to match the overall return of the entire US. stock market. Portfolio managers invest in more than 3,700 stocks, according to each stock’s weighting in the CRSP US. Total Market Index. This index covers almost the entire capitalization of all stocks traded on the New York Stock Exchange (NYSE) and the NASDAQ. The fund does a near-perfect job of matching the index.
The fund has a five-year annualized total return of 12.89%, an expense ratio of 0.15% and an ultra-low turnover rate of 3.1%. The fund owns 13,056,362 shares of LUV.
Vanguard Capital Opportunity Inv (“VHCOX”)
The Vanguard Capital Opportunity Inv (“VHCOX”) is an actively managed stock fund. The fund’s goal is the long-term growth of principal. Its benchmark is the Russell Mid-Cap Growth Index, even though the average capitalization of the fund’s portfolio is three times the average capitalization of companies included in the index. It significantly outperforms the index.
The fund has a five-year annualized total return of 16.81%, an expense ratio of 0.44%, a four-star Morningstar rating, and a turnover rate of 8.6%. The fund owns 10,205,400 shares of the airline. The fund is closed to new investors.
Vanguard 500 Index INV (“VFINX”)
The Vanguard 500 Index INMV (“VFINX”) tracks the S&P index and attempts to replicate it as closely as possible. The fund manages 507 stocks, with 21.6% of their assets going to their top 10 companies, which include heavy hitters like Apple and Microsoft. The fund is managed by Donald Butler, who took over for Michael H. Buek in 2016.
The fund has a five-year annualized return of 13.14%, and expense ratio of 0.14%, AUM of $400.6 billion, a four star Morningstar rating, and a turnover rate of 3.1%. The fund has invested 0.14% of their total assets to hold 9,585,764 shares.
Fidelity Contrafund (“FCNTX”)
The Fidelity Contrafund (“FCNTX”) is an actively managed large-cap growth fund. The fund’s objective is capital growth. Portfolio managers invest primarily in stocks with good growth potential, but they may also invest on a value-oriented basis. The fund’s benchmark is the S&P 500 index, and it steadily outperforms the index.
The fund has a five-year annualized return of 15.08%, an expense ratio of 0.74%, AUM of $123.7 billion, a four-star Morningstar rating and a turnover rate of 29%. It has invested 0.41% of net assets in 1.56% of Southwest’s common stock to hold 9,168,280 shares of LUV.