3 USAA Mutual Funds for Sturdy Returns

Shutterstock photo

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 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 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 High Income Fund  USHYX seeks to offer a high level of returns through growth of income and capital. The fund invests its assets in a wide variety of U.S. dollar-denominated high-yield bonds, including leveraged loans, convertible securities, bonds and preferred stocks.  USAA High Income Fund returned 3.4% in the last one-year period.

As of July 2018, USHYX held 491 issues, with 3.18% of its assets invested in SPDR Blmbg Barclays High Yield Bd ETF.

USAA Aggressive Growth USAUX seeks growth of capital. USAUX primarily invests in equity securities of domestic companies with large-size market capitalization. The fund focuses on acquiring securities of companies that are believed to have above-average growth prospects. It may also invest a maximum of 20% of its assets in securities of foreign companies, including those from emerging markets. USAA Aggressive Growth has one-year annualized returns of 24.9%.

USAUX has an expense ratio of 0.81% as compared with the category average of 1.07%.

USAA California Bond Fund  USCBX seeks growth of interest income that is free from federal and California state income taxes. It invests heavily in securities that are rated investment grade and issued by the state of California, its political divisions and other related government entities. USAA California Bond Fund has one-year annualized returns of 1.6%.

John C. Bonnell is the fund manager of USCBX since 2006.

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 .

Want key mutual fund info delivered straight to your inbox?

Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week.  Get it free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Get Your Free (USAUX): Fund Analysis Report

Get Your Free (USCBX): Fund Analysis Report

Get Your Free (USHYX): Fund Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Mutual Funds
Referenced Symbols: USAUX , USCBX , USHYX

More from Zacks.com




Equity Research

Research Brokers before you trade

Want to trade FX?