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 currently has $64.6 billion of assets under management invested in more than 50 mutual funds. The company aims to offer the best 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 aims for interest income that is exempted from federal income tax. The fund mostly invests in investment-grade securities. The interest generated from these is excluded from the gross income for federal income tax. USATX has three-year annualized returns of 2.5%.
Regina G. Conklin has been one of USATX’s managers since 2003.
USAA Short-Term Bond USSBX seeks a high level of current income that is on par with capital preservation. The fund invests the majority of its assets in a wide range of investment-grade debt securities that have a dollar-weighted average portfolio maturity of up to three years. USSBX has three-year annualized returns of 2.3%.
USSBXhas an expense ratio of 0.58% compared with the category average of 0.76%.
USAA Income Stock USISX invests a major portion of its assets in common stocks of domestic companies, of which more than 65% are invested in securities of dividend-paying companies. USISX focuses on acquiring securities of companies that are believed to have high dividend income and strong growth prospect. USISX may also invest a maximum of 20% of its assets in securities of foreign companies, including those from emerging markets. The USAA Income Stock fund has three-year annualized returns of 11.1%.
As of March 2019, USISX held 152 issues with 2.35% of its assets invested in Microsoft Corp.
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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