USAA has launched its first USAA-branded exchange traded funds (ETFs) on NYSE Arca. Consisting of four smart beta equity ETFs and two fixed income ETFs, the new suite of funds are built as core portfolio-building solutions and provide investors more investment choices at a competitive entry point.
The smart beta equity ETFs strategy is to focus on two primary factors: value and momentum, which identify stocks with attractive valuations and positive price momentum. The strategy includes holdings that are weighted in such a way to help diversify the risk of the individual holdings.
The new actively-managed fixed income ETFs capitalise on USAA’s decades of experience in Core Bond categories. The USAA Core Intermediate-Term Bond ETF has an investment objective that focuses on high current income without undue risk to principal and the USAA Core Short-Term Bond ETF features an investment objective that focuses on high current income consistent with preservation of capital. USAA is a significant institutional investor in ETFs and has been investing successfully the USAA way in fixed income for more than 40 years.
“At USAA, we continually strive to meet our members’ needs and help them achieve their financial goals. We’ve had a long and successful history offering marketplace ETFs and currently have more than $5 billion invested in third party ETFs through multiple asset classes,” says John Spear, Chief Investment Officer, USAA Mutual Funds. “When you add our core competency of active fixed income fund management and track record providing smart beta strategies, it was a logical next step to offer USAA-branded ETFs to complement our investment solutions and help our members prepare for their financial future.”