Webull

Best USAA Mutual Funds


2020 best USAA mutual funds with top Morningstar ratings. Reviews of the best performing USAA index funds (S&P 500, NASDAQ 100) in the last 10 years.



Best USAA Mutual Funds Overview


USAA is a respected financial services company that has been in business for nearly 100 years and offers a broad line of insurance and investment products including a large family of no-load mutual funds. It should be noted that investors must be members of USAA. Membership is limited to those who serve or have served in the military, plus certain family members of those service members.

Below are the top three USAA mutual funds based on 10-year performance combined with a Morningstar rating of five stars for the same 10-year period. The minimum investment for all of these funds is $3000. All funds are suitable for IRAs as well as general accounts.







Science & Technology Fund (USSCX)


USSCX is a specialty fund that invests in specific sectors or industries. The fund will normally invest at least 80% of the Fund's assets in stocks of companies that concentrate on scientific or technological products or services. The fund may also invest up to 50% of its assets in foreign securities. Because of these two factors, the fund's risk profile is very aggressive. Investors should expect a high degree of volatility, but returns may be well above average compared with the overall stock market. Investors in this fund should have a long-term investment horizon, since large losses may be incurred in the short term.

The fund's 10-year annualized return is 9.68%, compared with its benchmark index of 6.80%. This puts USSCX in the top 19% of funds in the same category based on Morningstar data. The expense ratio is 1.24%, slightly below the average expense ratio of its peers. The top three common stock holdings of USSCX are Alphabet, Inc. Class A, Apple, Inc., and Microsoft Corp.


Best usaa mutual fund



World Growth Fund (USAWX)


USAWX is a moderately aggressive growth fund with a global perspective. The fund invests in equities of foreign and domestic companies and may invest in companies in emerging markets. This means the fund's risk includes economic risks of the countries in which it invests, which may add to volatility. However, the fund generally invests in large capitalization stocks, which usually are less volatile than small capitalizations stocks. As an actively managed fund, there is also management risk that an investor must consider.

The fund's 10-year annualized return is 7.26% compared with its benchmark index of 4.73%. This puts USAWX in the top 6% of all funds in its category according to Morningstar data. The expense ratio is 1.17%, slightly above the average expense ratio of its peers. The top three common stock holdings of USAWX are Walt Disney Co., Time Warner, Inc., and Nestle SA.


Best usaa fund


Recommended Articles


TD Ameritrade vs Scottrade vs Fidelity
USAA vs Robinhood
Ally Invest vs Vanguard


S&P 500 Index Fund, Member Shares (USPPX)


USPPX is a classic index fund that invests in the common stocks of the 500 largest U.S. companies and seeks to match the returns of its benchmark index, the S&P-500 Index. The risk profile is moderately aggressive only because stocks are more volatile than bonds or cash securities. The fund owns only large capitalization domestic stocks, so there is less volatility than what may be found in funds invested in small companies or international companies. The fund is passively managed, so management risk is not an issue.

The fund's 10-year annualized return is 6.56% compared with its benchmark index of 6.80%. This puts USPPX in the top 28% of all funds in its category according to Morningstar data. The fund has a 5-star Morningstar rating. The expense ratio is 0.29%, but there is currently a 0.03% reimbursement from the fund advisor, which puts the net expense ratio at 0.26%. This is about half the average expense ratio of the fund's peers. The top three common stock holdings of USPPX are Apple, Inc., Microsoft Corp, and Exxon Mobil Corporation.


Top usaa mutual funds





Best USAA Index Funds


USAA S&P 500 Index Fund (USPPX)


S&P 500 Index Fund (USPPX) is a USAA mutual fund that tracks the performance of the S&P-500 Index by investing in the largest 500 U.S. companies. It has a moderately aggressive risk profile as these stocks are more volatile than bonds or cash securities. The fund invests only in large cap U.S. stocks so volatility is much lower that at funds invested in mid- or small-cap stocks. USPPX is managed passively, so there is no management risk.

USPPX's annualized return for the last 10 years is 7.73% and the benchmark index returned 7.48%. This puts S&P 500 Index Fund in the top 28% of all funds in this category. Morningstar rated the fund at 4-stars. The net expense ratio of the fund is currently at 0.26% which is about half of expense ratios of the fund's peers. The top three common stock holdings of USPPX are Apple, Inc., Microsoft Corp, and Exxon Mobil Corporation.


Best USAA Index Funds



USAA Extended Market Index Fund (USMIX)


Strategy: The fund's investment objective is to seek to match, before fees and expenses, the performance of the U.S. stocks not included in the S&P 500 Index as represented by the Dow Jones U.S. Completion Total Stock Market Index. Normally at least 80% of the portfolio's assets will be invested in stocks of companies or other financial instruments that are included in or correlated with securities in the Dow Jones U.S. Completion Total Stock Market Index. The Dow Jones U.S. Completion Total Stock Market Index measures the performance of the equity securities of all U.S.-headquartered companies with readily available price data, excluding companies in the S&P 500 Index.

Purchase info: Minimum initial investment is $3,000; an expense ratio is 0.48%.

Morningstar Rating: The fund has a 3-star Morningstar rating which makes it less attractive than two other, 4- and 5- star rated USAA index funds in this article.


Top Performing USAA Index Funds


Recommended Articles


Best mutual fund brokers
How much stock broker charges?


USAA NASDAQ-100 Index Fund (USNQX)


USNQX is a passively managed index fund that seeks to duplicate the performance of the NASDAQ-100 Index. This index consists of the 100 largest non-financial stocks traded on the NASDAQ stock exchange. The fund focuses on aggressive growth, so there is considerable volatility risk with this fund, but returns have the potential to be much higher than the overall market average. The fund invests at least 80% of its assets in the index's stocks, but has the option of investing up to 20% of its assets in cash or other securities.

The fund's 10-year annualized return is 12.16% compared with its benchmark index of 13.18%. This puts USNQX in the top 2% of funds in the same category based on Morningstar data. The fund has a 5-star Morningstar rating. The expense ratio is 0.59%, about half that of the average expense ratio for the fund category. The top three common stock holdings of USNQX are Apple, Inc., Microsoft Corp., and Amazon.com, Inc.


USAA Index Funds



USAA Brokerage Pros


Fees – Clients purchasing Fidelity funds through USAA’s brokerage can craft a low fee index fund portfolio. Fees are in line with industry average and will not hamper account growth.

Simplicity – USAA is a bare bones investment platform that delivers a way to quickly and inexpensively trade securities. If you are looking for a no-frills way to buy and sell stocks, it executes that role flawlessly.

Credit Card Support – USAA has outstanding credit card offers that provide members up to 5% cash back on qualifying purchases. This money can be tied directly to a brokerage account to help automate savings and hit financial milestones.

Recommended Articles


Can you buy Vanguard funds on Ally Invest?
Merrill Lynch vs USAA


USAA Brokerage Cons


Advice Fees – USAA’s fee structure for advice is dated and is no longer competitive with discount brokerages. What was acceptable in the 1990s is no longer okay for the majority of retail investors. USAA needs to either offer robo-advisory services or lower their fees to become an attractive option for most investors.

House Fund Fees – USAA branded fees are expensive and are not attractive when compared to similar Fidelity, Schwab, or Vanguard products.

Lack of Information – USAA should eliminate their investor education center or radically overhaul that part of their site. The information is growing stale and new articles are rarely posted.


Best USAA Index Funds Recap


USAA's top performing funds over the past ten years show above average returns for their fund categories. Two of the funds, USSCX and USAWX, are actively managed and rank in the top ten percent in their respective categories. Low expense ratios for passively managed index funds combined with excellent management and stock selection in actively managed funds means USAA is a good choice to consider when looking for a family of funds that offer competitive returns. The one possible drawback for some investors is the membership requirements to join USAA.