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3 Top-Ranked USAA Mutual Funds to Buy

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

Founded 40 years ago, the company currently has $64.6 billion of assets under management invested in more than 50 mutual funds. It also manages $60.8 billion of assets for USAA and its subsidiaries. The company aims to offer the best investment options at low initial investments and reasonable entry points. 

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

USAA High Income (USHYX - Free Report) aims to provide total return through current income and capital growth. It focuses on investing in dollar denominated non-investment-grade debt securities. Along with domestic securities, it may also invest without limit in dollar-denominated foreign securities. This high yield mutual fund returned 8.4% over the last one-year period.

Julianne Bass is the fund manager of USHYX since 2007.

USAA Intermediate-Term Bond (USIBX - Free Report) invests the bulk of its assets in a wide variety of debt securities with maturity between three to 10 years. USIBX invests mainly in dollar-denominated investment grade bonds, but may invest around one-tenth of its assets in high yield debt securities. The fund seeks a high level of income without unnecessary risks to principal. USIBX returned 7% in the last one-year time frame.

USIBXhas an expense ratio of 0.62% as compared to the category average of 0.79%.

USAA Income (USAIX - Free Report) seeks income growth without any undue risk. USAIX invests mainly in dollar-denominated bonds that have been chosen for their high yields with respect to the risk involved. Although the fund invests the majority of its assets in investment-grade debt securities, it may invest nearly 10% of its assets in “junk bonds” or high yield bonds.

As of September 2016, USAIX held 873 issues, with 1.21% of its assets invested in US Treasury Note 2%.

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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