USAA S&P 500 Index Fund

Scorecard
4 / 5 Stars
Lipper
4 4 5 4 4
Zacks Investment Research
5 (Strong Sell)
Standard & Poor's
4 / 5 Stars
TheStreet.com
A- (Buy)

#112 in Large Blend

U.S. News evaluated 487 Large Blend Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.

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Performance

The fund has returned 25.05 percent over the past year, 14.05 percent over the past three years, 22.72 percent over the past five years, and 6.93 percent over the past decade.

Trailing Returns Updated 02.28.2014
Year to date 0.9%
1 Year 25.0%
3 Years (Annualized) 14.1%
5 Years (Annualized) 22.7%
10 Years (Annualized) 6.9%

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Summary

The USAA S&P 500 Index gives investors exposure to the broad stock market.

As of March 05, 2014, the fund has assets totaling almost $4.47 billion invested in 503 different holdings. Its portfolio consists of the companies that comprise the S&P 500.

The S&P 500 is comprised of 500 U.S. large-cap stocks that together account for roughly three-quarters of the domestic equities market. As such, it is a strong indicator of the overall health of the U.S. stock market. This fund looks to give investors passive exposure to the index by investing in all 500 companies that comprise it. Each stock is given the same weighting it gets in the index. Overall, the goal is for investors to get returns that, on a year-to-year basis, mimic those of the broader market. Recently, the fund has done a relatively good job of accomplishing that goal. Last year, the fund, like broader market, struggled to find its footing for much of the year but benefitted from an end-of-the-year rally. Apple was a huge benefit to the fund’s performance in 2010, while Microsoft and Johnson & Johnson held it back. The fund has returned 25.05 percent over the past year and 14.05 percent over the past three years.

Historically, the fund has stayed true to its mission of replicating the returns of the S&P 500. Still, other products do so for less money. This fund’s 0.25 percent expense ratio is certainly low on an absolute basis. But when compared with some other options, it looks a bit pricey. Take, for instance, Schwab’s S&P 500 Index, which carries a yearly price tag of 0.09 percent. When it comes to indexing, especially for plain-vanilla indexes like the S&P 500 that are relatively easy to replicate, price makes all the difference. That’s because while almost all S&P 500 index funds will get the same pre-expense returns, their post-expense returns are what investors are concerned with. The fund has returned 22.72 percent over the past five years and 6.93 percent over the past decade.

Investment Strategy

This fund looks to give investors passive exposure to the S&P 500 by investing in all 500 companies that comprise it. Each stock is given the same weighting it gets in the index.

Role in Portfolio

This fund could lend support to a well-balanced portfolio.

Management

Brent Reeder oversees the fund.

Fees

USAA S&P 500 Index Fund has an expense ratio of 0.25 percent.

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Risk

Like all stock funds, this one comes with some risks.

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