3 USAA Mutual Funds for Stunning Returns
Founded 40 years ago, USAA Investment Management Company, as of Jun 30, 2018, had $72.1 billion of assets under management, invested in more than 50 mutual funds. All the mutual funds under the fund bear no 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) is expected to outperform peers in the future. Investors can click here to see the complete list of USAA funds.
USAA Tax Exempt Intermediate-Term USATX 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. It has three-year annualized returns of 2%.
USATXhas an expense ratio of 0.51% as compared to the category average of 0.75%.
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 2.2%.
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 a three-year annualized return of 5.4%.
As of December 2018, URINX held 18 issues with 31.92% of its assets invested in USAA Government Securities Institutional.
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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