Founded 40 years ago, USAA Investment Management Company currently has $64.6 billion of assets under management invested in more than 50 mutual funds. The company also manages $60.8 billion of assets for USAA and its subsidiaries. It 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.
Below we share with you three top-ranked USAA mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) is expected to outperform its peers in the future. Investors can click here to see the complete list of USAA funds.
USAA Aggressive Growth (USAUX - Free Report) seeks growth of capital. USAUX primarily invests in equity securities of domestic companies with large size market capitalizations. USAUX focuses on acquiring securities of companies that are believed to have above-average growth prospects. USAUX may also invest a maximum of 20% of its assets in securities of foreign companies including those from emerging markets. USAA Aggressive Growth has a one-year annualized return of 18.3%.
USAUX has an expense ratio of 0.85% as compared to the category average of 1.14%.
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. USAA Income has a one-year annualized return of 2.2%.
As of May 2017, USAIX held 938 issues, with 1.10% of its assets invested in US Treasury Note 2%.
USAA Tax Exempt Long-Term Adviser (UTELX - Free Report) seeks interest income, which is free from federal income tax. UTELX invests heavily in investment-grade debt securities that offer income dividends exempted from federal income tax. The dollar-weighted average portfolio maturity of the fund is at least 10 years.USAA Tax Exempt Long-Term Adviser has a one-year annualized return of 0.1%.
Dale Hoffmann is one of the portfolio managers of UTELX 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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