Fund Evaluator:
Victory Target Retirement 2040 (URFRX)
Follow This Fund
Best Performing in Target-Date 2040 Over the Last Year
| 28.5% | SP Funds 2040 Target Date Investor (SPTBX) |
| 21.0% | Fidelity Advisor Freedom Blend 2040 Z (FHHFX) |
| 20.4% | Fidelity Advisor Sust Trgt Dt 2040 Z (FSYDX) |
| 20.3% | Victory Target Retirement 2040 (URFRX) |
| 20.3% | Fidelity Advisor Sust Trgt Dt 2040 I (FSYBX) |
Fund Details
Victory Target Retirement 2040 Overview
Victory Target Retirement 2040 (URFRX) is an actively managed Allocation Target-Date 2040 fund. Victory Capital Management Inc. launched the fund in 2008.
The investment seeks capital appreciation and current income consistent with its current investment allocation. The fund's target asset allocation will consist of approximately 35% of the fund's net assets allocated to equity investments; and approximately 65% of the fund's net assets allocated to fixed-income investments. Its target asset allocation will not change after the target date has been reached unless approved by the fund's Board of Trustees (Board).
About Victory Target Retirement 2040 (URFRX)
There are 3 members of the management team with an average tenure of 6.68 years: Mannik Dhillon (2019), Lance Humphrey (2018), Lela Dunlap (2021). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: S&P 500 (TR) (1970) index with a weighting of 100% and S&P Target Date 2040 TR USD index with a weighting of 100%. Victory Target Retirement 2040 has 28 securities in its portfolio. The top 10 holdings constitute 58.2% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
Victory Target Retirement 2040 is part of the Allocation global asset class and is within the Allocation fund group. Victory Target Retirement 2040 has 32.2% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 46.3%. There is 30.5% allocated to foreign stock, and 0.3% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 21.2% (19.5% domestic bond, 1.8% foreign bond and 0.0% convertible bond). Victory Target Retirement 2040 has 1.8% of the portfolio in cash.
Assets Under Management
The fund has $1 billion in total assets, which is above the $1 billion average for the Target-Date 2040 category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
URFRX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Victory Target Retirement 2040 expense ratio is average compared to funds in the Target-Date 2040 category. Victory Target Retirement 2040 has an expense ratio of 0.57%, which is 15% lower than its category average, making the fund expense ratio grade a C. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Victory Target Retirement 2040 has a portfolio turnover rate of 12%, indicating that holds its assets around 0.1 years. By way of comparison, the average portfolio turnover is 22% for the Target-Date 2040 category.
Recently, in the month of July 2026, Victory Target Retirement 2040 returned 0.2%, which earned it a grade of A, as the Target-Date 2040 category had an average return of -0.8%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
Victory Target Retirement 2040 has a trailing yield of 2.26%, which is above the 1.91% category average. The fund normally distributes its income annually and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Victory Target Retirement 2040 Grades
Year to date, the fund has returned 11.3%, 2.5 percentage points better than the category, which translates into a grade of A. The fund has returned 20.3% over the past year (grade of A), 15.1% over the past three years (grade of B) and 8.6% per year over the past five years (grade of A) and 9.3% per year over the past 10 years (grade of F).
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URFRX Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| URFRX Return (NAV) | 0.2% | 4.4% | 20.3% | 15.1% | 8.6% | 9.3% |
| URFRX Grade | A | A | A | B | A | F |
| +/- Category | 1.0% | 1.6% | 3.2% | 0.8% | 0.9% | -0.6% |
| Target-Date 2040 Avg | -0.8% | 2.8% | 17.2% | 14.2% | 7.7% | 10.0% |
| URFRX Tax Cost Ratio | na | na | 2.0% | 1.5% | 2.0% | 2.0% |
URFRX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| URFRX Return (NAV) | 11.3% | 17.5% | 12.1% | 17.2% | -15.1% | 15.9% | 9.2% | 19.6% | -8.5% | 18.5% | 9.0% |
| URFRX Grade | A | C | D | D | A | C | F | F | D | F | A |
| +/- Category | 2.5% | 0.1% | -0.8% | -0.8% | 2.2% | 0.2% | -6.1% | -4.2% | -0.6% | -1.6% | 1.2% |
| Target-Date 2040 Avg | 8.8% | 17.4% | 12.8% | 17.9% | -17.4% | 15.7% | 15.3% | 23.8% | -7.9% | 20.1% | 7.8% |
| Risk Measures | |
| Standard Deviation: | 9.5% |
| Total Risk Index: | 0.78 - Below Average |
| Category Risk Index: | 0.89 - Low |
| Category Risk Grade: | A (8% Rank) |
| Beta: | 1.00 |
| R-Squared: | 96% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Large-Cap Blend |
| Bond Investment Style: | High Quality Limited Sensitivity |
| Yield: | 2.3% |
| Dividend Distribution: | Annually |
| Cap Gains Distribution: | Annually |
| Total Assets: | $1910 Mil |
| Fund Total Assets: | $1,911 Mil |
| Share Class Type: | No Load |
| Portfolio Turnover: | 12% |
Management Team
| Number of Managers: 3 | |||
| Longest Tenure: 8.2 years | |||
| Average Tenure: 6.7 years | |||
| Managers (Year): Humphrey Lance (2018), Dhillon Mannik (2019), Dunlap Lela (2021) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 28 |
| % in Top 10 Holdings: | 58.2% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 32.2% |
Portfolio Allocation |
|
| Domestic Stock: | 46.3% |
| Foreign Stock: | 30.5% |
| Preferred Stock: | 0.3% |
| Domestic Bond: | 19.5% |
| Foreign Bond: | 1.8% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 1.8% |
Purchase Information
| Fund Family: | Victory Capital Management Inc. |
| Phone Number: | 800-235-8396 |
| Website: | www.usaa.com |
| Status: | Open |
| Inception Date: | July 31, 2008 |
| Min. Initial Purchase: | $ 500 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | 0.00% |
Expenses and Fees | |
| Expense Ratio (%): | 0.57% ( Rating : Avg ) |
| Category Average Expense Ratio (%): | 0.67% |
| Share Class: | Victory Target Retirement 2040 |
| Min. Subsequent Purchase: | $ 50 |
| Min. Subsequent IRA Purchase: | $ 0 |
