USAA LAUNCHES PORTFOLIO OF SMART BETA AND FIXED INCOME EXCHANGE TRADED FUNDS (ETFs)

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 USAA LAUNCHES PORTFOLIO OF SMART BETA AND FIXED INCOME EXCHANGE TRADED FUNDS (ETFs)

First USAA-branded ETFs to focus on factor-based equity funds and actively-managed fixed income funds

 

SAN ANTONIO – USAA announced today the initial trading of 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 capitalize 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.

Additional information on the new USAA ETFs:

 

ETF Name

Ticker

(NYSE)

Inception

Date

Expense

Ratio1

Actively Managed Fixed Income ETFs

USAA Core Short-Term Bond ETF 

USTB

10/26/17

.40% Gross

.35% Net

USAA Core Intermediate-Term Bond ETF

UITB

10/26/17

.45% Gross

.40% Net

Smart Beta Equity ETFs

USAA MSCI USA Value Momentum Blend Index ETF

ULVM

10/26/17

.25% Gross

.20% Net

USAA MSCI USA Small Cap Value Momentum Blend Index ETF

USVM

10/26/17

.30% Gross

.25% Net

USAA MSCI International Value Momentum Blend Index ETF

UIVM

10/26/17

.40% Gross

.35% Net

USAA MSCI Emerging Markets Value Momentum Blend Index ETF

UEVM

10/26/17

.50% Gross

.45% Net

1: The Adviser has contractually agreed to waive a portion of its management fees in an amount equal to 0.05% of the average daily net assets of the Fund through 10/15/18 and the waiver cannot be terminated or reduced without approval of the Fund’s Board of Trustees (“Board”) during that term. 

 

“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,” said 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.”

 

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Disclaimer
Consider the investment objectives, risks, charges and expenses and other information of the USAA ETFs, available in each ETF’s prospectus, read it carefully before investing. Contact us at 800-531-8910 for a prospectus containing this and other information about the funds from USAA Investment Management Company, Distributor. The information provided does not constitute a recommendation of any investment strategy or product for a particular investor and should not be considered advice given in a fiduciary capacity, including within the meaning of ERISA. Investors should consult a financial advisor/financial consultant before making any investment decisions.

 

Investing in securities products involves risk, including possible loss of principal.

Shares of ETFs are bought and sold in the market at a market price, which may differ from NAV. Investors selling ETF shares in the market may receive less than NAV. Investors buying and selling ETF shares at market price may pay brokerage commissions, which will reduce returns. Market returns are based upon the closing price, which is generally at 4:00 p.m. ET and do not represent the returns you would receive if you traded shares at other times. Investors may acquire ETF shares and tender them for redemption in Creation Unit Aggregations only. Individual ETF shares are not redeemable.

 

 

About USAA
The USAA family of companies provides insurance, banking, investments, retirement products and advice to more than 12 million current and former members of the U.S. military and their families. Known for its legendary commitment to its members, USAA is consistently recognized for outstanding service, employee well-being and financial strength. USAA membership is open to all who are serving our nation in the U.S. military or have received a discharge type of Honorable – and their eligible family members. Founded in 1922, USAA is headquartered in San Antonio. For more information about USAA, follow us on Facebook or Twitter (@USAA), or visit usaa.com.