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 had $81.3 billion of assets under management as of Apr 30, 2019 and is 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 Income USAIX seeks income growth without any undue risk. USAIX invests mainly in dollar-denominated bonds that have been chosen for their high yields with respect to the risk involved. Although the fund invests the majority of its assets in investment-grade debt securities, it may invest nearly 10% of its assets in “junk bonds” or high-yield bonds. USAIX has three-year annualized returns of 3.6%.
As of May 2019, USAIX held 1,051 issues, with 0.97% of its assets invested in United States Treasury Notes 2%.
USAA NY Bond USNYX invests mainly in investment-grade securities that are issued by the New York state and its 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. USAA NY Bond has returned 2.1% over the past three years.
USNYX has an expense ratio of 0.59% as compared to the category average of 0.82%.
USAA World Growth Fund USAWX seeks appreciation of capital by investing in securities of U.S.-based as well as non-U.S. based companies. The fund also invests in equity securities from the emerging markets. USAWX has three-year annualized returns of 12.2%.
Roger M. Morley is one of USAWX’s managers since 2009.
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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