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3 USAA Mutual Funds for Superlative Returns

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USAA Investment Management Company allocates assets across a wide range of mutual fund categories, including equity and fixed-income funds. The company seeks to follow military values — Service, Loyalty, Honesty and Integrity — to offer financial services such as brokerage services and discretionary asset management.

Founded more than 40 years ago, the company has invested in more than 50 mutual funds. It aims to offer the best options at low initial investments and reasonable entry points.

Last year, Victory Capital Holdings, Inc. completed the acquisition of USAA Asset Management Company, which comprises USAA’s Mutual Fund, ETF businesses and the latter’s 529 College Savings Plan. As of Apr 30, 2019, Victory Capital had $61.0 billion in and USAA Asset Management Company had $81.3 billion in assets under management.

Below we share with you three top-ranked USAA mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) or #2 (Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of USAA funds.

USAA Cornerstone Conservative Fund (USCCX - Free Report) aims for current income. The fund invests the majority of its assets in fixed-income securities. USCCX may also invest in equity securities. It follows a fund-of-funds strategy of investing its assets in a selection of affiliated mutual funds and ETFs through which it invests in fixed-income securities and equity securities. USCCX has returned 4.8% in the past three years.

Wasif A. Latif is one of USCCX’s fund managers since 2012.

USAA New York Bond Fund (USNYX - Free Report) invests mainly in investment-grade securities that are issued by the New York state and related government agencies. USNYX seeks to provide interest income free from federal income tax as well as New York City and New York State personal income taxes. The fund maintains a dollar-weighted portfolio whose average maturity is 10 years or higher. USNYX has three-year annualized returns of 3.7%.

USNYXhas an expense ratio of 0.62% compared to the category average of 0.80%.

USAA Growth and Tax Strategy Fund (USBLX - Free Report) aims for both income, which is exempt from federal income tax, and long-term growth of capital. The fund invests the majority of its assets in tax-exempt bonds, money-market instruments and blue-chip stocks. It is managed with an objective of minimizing the affect of federal income tax to its investors. USBLX has three-year annualized returns of 7.8%.

As of the end of June 2020, USBLX held 755 issues, with 2.82% of its assets invested in Microsoft Corp.

To view the Zacks Rank and past performance of all USAA mutual funds, investors can click here to see the complete list of USAA funds.

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