USAA Value Fund (UVALX)

I've noticed that there isn't a lot of information about USAA mutual funds on the internet. Morningstar has the most information and I just wanted to clear the air about some of these funds. I've checked out another fund, called the USAA Value Fund (UVALX). If I were to invest in mutual funds I would be in a value fund; however, probably not this one. The expense ratio is 1.15% which, to me, is high. They are only rated a 3-star by Morningstar.

The fund has beaten its own category and the S&P 500 for the last four years. UVALX has a yield of only .95%; however, that's normal for a value fund. If my portfolio was a mutual fund, it would yield a similar amount. Value investing doesn't concentrate on dividends, it concentrates on earnings. Undervalued companies are usually companies with low-to-no dividend stocks, because they re-invest all their profits into the company.

UVALX has about 95% of the fund in stocks. That's a good amount for someone that is starting to invest and can handle the risk. Value investing doesn't post stellar returns like a growth fund will; however, a value fund won't lose all of its value in a down market.

There are better value mutual funds out there. If you are already using USAA and you like their services then I would suggest this value fund.