Founded 40 years ago, USAA Investment Management Company, has $64.6 billion of assets under management, invested in more than 50 mutual funds. None of the mutual funds bear any sales load.
USAA allocates 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) or 2 (Buy) is expected to outperform peers in the future. Investors can click here to see the complete list of USAA funds.
USAA California Bond Fund USCBX 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 divisions and other related government entities. It has three-year annualized returns of 2.7%.
John C. Bonnell has been the fund manager of USCBX since 2006.
USAA Target Retirement Income URINX invests nearly 30% of its assets in underlying funds, which in turn focus on acquiring equity securities. URINX seeks appreciation of capital as well as current income. URINX also invests around 10% of its assets in underlying funds that invest in ultra-short-term investments and nearly 60% in securities with underlying fixed income funds. It has three-year annualized returns of 5.1%.
As of February 2019, URINX held 19 issues with 31.17% of its assets invested in USAA Government Securities Institutional.
USAA Income Stock USISX invests a major portion of its assets in common stocks of domestic companies, out 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 10.4%.
USISX has an expense ratio of 0.76% as compared to the category average of 1.00%.
USAA Small Cap Stock USCAX seeks capital appreciation over the long run. USCAX invests the lion’s share of its assets in equity securities of small-cap companies. USCAX primarily focuses on acquiring securities of domestic companies. USCAX may also invest a maximum of 20% of its assets in securities of companies located abroad including those from emerging markets. The USAA Small Cap Stock fund has three-year annualized returns of 10.4%.
As of February 2019, USCAX held 84 issues, with 3.11% of its assets invested in TriMas 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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