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 under 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 Tax Exempt Long-Term Fund (USTEX - Free Report) invests a bulk of its assets in investment-grade securities whose interest is exempted from federal income tax. The dollar-weighted average portfolio maturity of the fund is 10 years or more. The fund seeks high interest income which is free from federal income tax. USAA Tax Exempt Long-Term Fund has three-year annualized returns of 3.6%
Dale Hoffmann is one of the fund managers of USTEX since 2015.
USAA California Bond Fund (USCBX - Free Report) seeks growth of interest income that is free from federal and California state income taxes. USCBX invests heavily in securities that are rated investment grade and issued by the state of California, its political subdivisions and other related government entities. USAA California Bond Fund has three-year annualized returns of 3.5%.
As of July 2017, USCBX held 156 issues with 2.7% of its assets invested in Golden St Tob Securitization C Enh 4.55%.
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 has three-year annualized returns of 3.4%.
USIBX has an expense ratio of 0.62% as compared to the category average of 0.79%.
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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