Image: Bigstock

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 more than 40 years ago, the company has invested in more than 50 mutual funds. It aims to offer the best options at low initial investments and reasonable entry points.

Last year, Victory Capital Holdings, Inc. completed the acquisition of USAA Asset Management Company, which comprises USAA’s Mutual Fund, ETF businesses, and the latter’s 529 College Savings Plan. As of Nov 30, 2020, Victory Capital had $142.5 billion in assets under management.

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 New York Bond Fund (USNYX - Free Report) invests mainly in investment-grade securities that are issued by the New York state and 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. USNYX has three-year annualized returns of 4.1%.

Regina G. Conklin is one of USNYX’s fund managers since 2010.

USAA Income Fund (USAIX - Free Report) aims for maximum current income without excessive risk to principal. The fund invests mainly in U.S. dollar-denominated fixed-income securities selected for their high yields compared to the risk involved. USAIX has three-year annualized returns of 5%.

USAIX has an expense ratio of 0.50% compared to the category average of 0.80%.

USAA Growth and Tax Strategy Fund (USBLX - Free Report) aims for both income, which is exempt from federal income tax, and long-term growth of capital. The fund invests the majority of its assets in tax-exempt bonds, money-market instruments, and blue-chip stocks. It is managed with an objective of minimizing the affect of federal income tax to its investors. USBLX has three-year annualized returns of 6.8%.

As of the end of September 2020, USBLX held 759 issues, with 3.31% of its assets invested in Apple Inc.