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 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 CA Bond Adviser (UXABX – Free Report) aims for high current income that is exempted from federal and California state income taxes. The fund mostly invests in long-term investment-grade securities issued by the state of California and by other government bodies whose interest is excluded from the gross income for federal and California state income taxes. UXABX has returned 2% in the last three years.
UXABX has an expense ratio of 0.75% compared with the category average of 0.86%.
USAA Tax Exempt Intermediate-Term (USATX – Free Report) aims for interest income that is exempted from federal income tax. The fund mostly invests in investment-grade securities. The interest generated from these is excluded from the gross income for federal income tax. USATX has three-year annualized returns of 2.2%.
Regina G. Conklin has been one of USATX’s managers since 2003.
USAA Short-Term Bond (USSBX – Free Report) seeks a high level of current income that is on par with capital preservation. The fund invests the majority of its assets in a wide range of investment-grade debt securities that have a dollar-weighted average portfolio maturity of up to three years.USSBX has three-year annualized returns of 2.5%.
As of January 2019, USSBX held 576 issues with 1.66% of its assets invested in United States Treasury Notes 1.38%.
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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