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3 Best USAA Mutual Funds for Decent 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 40 years ago, the company has invested in more than 50 mutual funds. The company aims to offer the best options at low initial investments and reasonable entry points.

On Jul 1, 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 assets under management and USAA Asset Management Company had $81.3 billion in assets under management. On a pro forma basis, Victory Capital’s firm-wide assets under management are estimated at $142.3 billion.

Below we share with you three top-ranked 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 Income Fund (USAIX - Free Report) invests the majority of its assets in U.S. dollar-denominated fixed-income securities that are selected for their high yields on par with the risk involved. The fund aims for maximum current income without risking the principal. Although the fund mostly invests in investment-grade securities but it may also invest in below-investment-grade securities. USAIX has returned 10.8% on a year-to-date basis.

As of September 2019, USAIX held 1,074 issues, with 0.96% of its assets invested in United States Treasury Notes 2%.

USAA Small Cap Stock Fund (USCAX - Free Report) seeks capital growth. The fund invests the majority of its assets in equity securities of small-market capitalization companies. The fund may also invest a smaller part of its net assets in foreign securities, including emerging market securities. USCAX has returned 25.3% on a year-to-date basis.

USCAX has an expense ratio of 1.10% as compared to the category average of 1.13%.

USAA Target Managed Allocation Fund (UTMAX - Free Report) aims to increase its total return through capital growth. The fund primarily invests in U.S. and non-U.S. equity securities and fixed-income securities through investments in shares of other investment companies, which could comprise ETFs and REITs. UTMAX has returned 20.3% on a year-to-date basis.

Wasif A. Latif is one of UTMAX’s managers since 2015.

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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