Thanks to the Department of Labor (DoL), we have data to answer this question. 401(k) plan sponsors are required to file Form 5500 with the DoL every year. Along with other information, Form 5500 lists which investments Amazon 401(k) plan participants have selected for their retirement funds—giving us insight into how Amazon.com employees choose to invest for retirement.
So what do Amazon employees invest in?
Perhaps not surprisingly, the Company Stock Fund (i.e., shares of AMZN) is by far the largest investment across Amazon plan participants, with 19% of total plan assets (down from 28% back in 2015). This investment choice is only available for the company’s matching contributions, and not for employee contributions.
Coming in third place (back to second place below)—at 9% of plan assets—is the low-cost Vanguard Institutional 500 Index Trust. This fund tracks the performance of the S&P 500 Index, representing around 500 of the largest companies in the United States—a great choice for a core investment holding.
Second place, and most of the remaining 10 ten holdings, are Vanguard target retirement funds.
These funds are designed to shift their holdings as the target retirement year approaches. They gradually shift to more bonds and fewer equities. In other words, they become more conservative as time passes.
The largest of these holdings is the Target Retirement 2050 Trust, designed for people planning to retire around the year 2050.
Plan assets as of 12/31/2020
(from Amazon’s October 2021 filing of Form 5500)
| Investment | % |
| Amazon.com (Company Stock Fund) | 19% |
| Vanguard Target Retirement 2050 Trust Select | 10% |
| Vanguard Institutional 500 Index Trust | 9% |
| Vanguard Target Retirement 2045 Trust Select | 9% |
| Vanguard Target Retirement 2055 Trust Select | 9% |
| Vanguard Target Retirement 2040 Trust Select | 7% |
| Vanguard Target Retirement 2035 Trust Select | 5% |
| State Street Russell Large Cap Growth Index Class C | 5% |
| Vanguard Target Retirement 2060 Trust Select | 4% |
| Vanguard Target Retirement 2030 Trust Select | 3% |
| Vanguard Explorer Fund Admiral Shares | 2% |
| Vanguard Total International Stock Index Fund | 2% |
| All other | 15% |
| Total Assets (excluding participant loans) | 100% |
See the Amazon 401(k) page for additional plan details and value of holdings.
Retirement Distribution
The distribution of assets in target retirement funds–which represent nearly half of total plan assets–provide a rough view of participating employee ages.
The largest holdings are in the 2045, 2050, and 2055 target funds. These investment should represent employees who plan to retire in the next 25 to 35 years.
Source: 2020 Form 5500 for Amazon’s 401k plan
