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.
USAA High Income Fund (USHYX – Free Report) 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 – Free Report) 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 – Free Report) 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%.
