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 aims to offer the best options at low initial investments and reasonable entry points.
Last year, Victory Capital Holdings, Inc. acquired USAA Asset Management Company. This comprises USAA’s Mutual Fund and ETF businesses and its 529 College Savings Plan. As of Aug 31, 2020, Victory Capital Holdings, Inc. had $136.8 billion in assets under management.
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 peers in the future. Investors can click here to see the complete list of funds.
USAA Managed Allocation Fund UMAFX aims to maximize its total return, which comprises mostly of capital appreciation. The fund invests majority of its assets in equity securities and fixed-income securities through investments in shares of other investment companies. These could include U.S. and foreign ETFs and REITs. UMAFX has three-year annualized returns of 3.7%.
As of the end of June 2020, UMAFX held four issues, with 25.6% of its assets invested in iShares JP Morgan USD Em Mkts Bd ETF.
USAA Income Fund USAIX aims for maximum current income without excessive risk to principal. The fund invests mainly in U.S. dollar-denominated fixed-income securities selected for their high yields compared to the risk involved. USAIX has three-year annualized returns of 5.1%.
USAIX has an expense ratio of 0.52% compared to the category average of 0.80%.
USAA New York Bond Fund USNYX invests mainly in investment-grade securities that are issued by the New York state and 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. USNYX has three-year annualized returns of 3.4%.
Regina G. Conklin is one of USNYX’s fund managers since 2010.
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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