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3 Best-Ranked USAA Mutual Funds for High Returns

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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. The company aims to offer the best investment options at low initial investments and reasonable entry points.

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 Tax Exempt Intermediate-Term (USATX - Free Report) seeks to offer interest income free from federal income tax. The fund invests a large chunk of its assets in tax-free investment-grade securities. USATX maintains a dollar-weighted portfolio, with average maturity ranging from three to 10 years. USAA Tax Exempt Intermediate-Term has one-year annualized returns of 2%.

As of April 2018, USATX held 983 issues with 0.91% of its assets invested in HARRIS CNTY TEX INDL DEV CORP 5%.

USAA NY Bond (USNYX - Free Report) invests mainly in investment-grade securities that are issued by the New York state and its related government agencies. USNYX seeks to provide interest income free from federal income tax as well as New York City and New York State personal income taxes. The fund maintains a dollar-weighted portfolio whose average maturity is 10 years or higher. USAA NY Bond has returned 1.3% in a year’s time.

USNYX has an expense ratio of 0.59% as compared to the category average of 0.84%.

USAA Tax Exempt Short-Term (USSTX - Free Report) seeks a high level of income free from federal income tax. The fund invests a huge portion of its assets in tax-free investment-grade securities. USSTX maintains a dollar-weighted average portfolio maturity of three years or lower. USAA Tax Exempt Short-Term has one-year annualized returns of 1.1%.

Regina G. Conklin has been one of the managers of USSTX since 2003.

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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