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Mutual Fund Bond fund seekers should consider taking a look at USAA Income Fund (USAIX - Free Report) . USAIX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Victory is based in Columbus, OH, and is the manager of USAIX. USAA Income Fund made its debut in March of 1974, and since then, USAIX has accumulated about $2.54 billion in assets, per the most up-to-date date available. The fund's current manager is a team of investment professionals.
Performance
Of course, investors look for strong performance in funds. USAIX has a 5-year annualized total return of 2.09% and is in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 1.43%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Compared to the category average of 12.22%, the standard deviation of USAIX over the past three years is 6.55%. Over the past 5 years, the standard deviation of the fund is 5.31% compared to the category average of 10.78%. This makes the fund less volatile than its peers over the past half-decade.
USAIX carries a beta of 1, meaning that the fund is volatile than a broad market index of fixed income securities. With this in mind, it has a positive alpha of 0.92, which measures performance on a risk-adjusted basis.
Ratings
Investors should also consider a bond's rating, which is a grade ( 'AAA' to 'D' ) given to a bond that indicates its credit quality. With this letter scale in mind, USAIX has 36.63% in high quality bonds rated at least 'AA' or higher, while 56.34% are of medium quality, with ratings of 'A' to 'BBB'. The fund has an average quality of A, and focuses on high quality securities.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, USAIX is a no load fund. It has an expense ratio of 0.44% compared to the category average of 0.77%. So, USAIX is actually cheaper than its peers from a cost perspective.
This fund requires a minimum initial investment of $3,000, and each subsequent investment should be at least $50.
Bottom Line
Overall, USAA Income Fund ( USAIX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, better downside risk, and lower fees, USAA Income Fund ( USAIX ) looks like a good potential choice for investors right now.
Don't stop here for your research on Mutual Fund Bond funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare USAIX to its peers as well for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.
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Is USAIX a Strong Bond Fund Right Now?
Mutual Fund Bond fund seekers should consider taking a look at USAA Income Fund (USAIX - Free Report) . USAIX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Victory is based in Columbus, OH, and is the manager of USAIX. USAA Income Fund made its debut in March of 1974, and since then, USAIX has accumulated about $2.54 billion in assets, per the most up-to-date date available. The fund's current manager is a team of investment professionals.
Performance
Of course, investors look for strong performance in funds. USAIX has a 5-year annualized total return of 2.09% and is in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 1.43%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Compared to the category average of 12.22%, the standard deviation of USAIX over the past three years is 6.55%. Over the past 5 years, the standard deviation of the fund is 5.31% compared to the category average of 10.78%. This makes the fund less volatile than its peers over the past half-decade.
USAIX carries a beta of 1, meaning that the fund is volatile than a broad market index of fixed income securities. With this in mind, it has a positive alpha of 0.92, which measures performance on a risk-adjusted basis.
Ratings
Investors should also consider a bond's rating, which is a grade ( 'AAA' to 'D' ) given to a bond that indicates its credit quality. With this letter scale in mind, USAIX has 36.63% in high quality bonds rated at least 'AA' or higher, while 56.34% are of medium quality, with ratings of 'A' to 'BBB'. The fund has an average quality of A, and focuses on high quality securities.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, USAIX is a no load fund. It has an expense ratio of 0.44% compared to the category average of 0.77%. So, USAIX is actually cheaper than its peers from a cost perspective.
This fund requires a minimum initial investment of $3,000, and each subsequent investment should be at least $50.
Bottom Line
Overall, USAA Income Fund ( USAIX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, better downside risk, and lower fees, USAA Income Fund ( USAIX ) looks like a good potential choice for investors right now.
Don't stop here for your research on Mutual Fund Bond funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare USAIX to its peers as well for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.