Fund Evaluator:
Victory Growth and Tax Strategy (USBLX)
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Best Performing in Moderately Conservative Allocation Over the Last Year
| 14.6% | Victory Growth and Tax Strategy (USBLX) |
| 14.4% | Vanguard Tax-Managed Balanced Adm (VTMFX) |
| 13.0% | Fidelity Advisor Multi-Asset Income Z (FIWBX) |
| 12.6% | Thrivent Dynamic Allocation S (IBBFX) |
| 12.4% | Goldman Sachs Income Builder Inv (GKIRX) |
Fund Details
Victory Growth and Tax Strategy Overview
Victory Growth and Tax Strategy (USBLX) is an actively managed Allocation Moderately Conservative Allocation fund. Victory Capital Management Inc. launched the fund in 1989.
The investment seeks a conservative balance for the investor between income, the majority of which is exempt from federal income tax, and the potential for long-term growth of capital to preserve purchasing power. Using preset target ranges, the fund's strategy is to invest a majority of its assets in tax-exempt bonds and money market instruments (50% - 70%) and the remainder in blue chip stocks (30% - 50%). It is managed with the goal of minimizing the impact of federal income tax to shareholders.
About Victory Growth and Tax Strategy (USBLX)
There are 5 members of the management team with an average tenure of 5.36 years: Mannik Dhillon (2019), Lance Humphrey (2022), Andrew Hattman (2019), Lauren Spalten (2021), Lela Dunlap (2022). 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 Bloomberg Municipal TR USD index with a weighting of 100%. Victory Growth and Tax Strategy has 798 securities in its portfolio. The top 10 holdings constitute 17.4% 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 Growth and Tax Strategy is part of the Allocation global asset class and is within the Allocation fund group. Victory Growth and Tax Strategy has 0.2% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 46.7%. There is 0.2% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 52.1% (52.1% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Victory Growth and Tax Strategy has 1.0% of the portfolio in cash.
Assets Under Management
The fund has $805 million in total assets, which is above the $563 million average for the Moderately Conservative Allocation 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.
USBLX 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 Growth and Tax Strategy expense ratio is average compared to funds in the Moderately Conservative Allocation category. Victory Growth and Tax Strategy has an expense ratio of 0.50%, which is 50% lower than its category average, making the fund expense ratio grade a A. 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 Growth and Tax Strategy has a portfolio turnover rate of 16%, indicating that holds its assets around 0.1 years. By way of comparison, the average portfolio turnover is 43% for the Moderately Conservative Allocation category.
Recently, in the month of June 2026, Victory Growth and Tax Strategy returned 0.3%, which earned it a grade of C, as the Moderately Conservative Allocation category had an average return of 0.1%. 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 Growth and Tax Strategy has a trailing yield of 2.24%, which is below the 3.33% category average. The fund normally distributes its income quarterly 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 Growth and Tax Strategy Grades
Year to date, the fund has returned 6.7%, 1.5 percentage points better than the category, which translates into a grade of A. The fund has returned 14.6% over the past year (grade of A), 12.2% over the past three years (grade of A) and 6.6% per year over the past five years (grade of A) and 8.2% per year over the past 10 years (grade of A).
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USBLX Trailing NAV Total Returns Data as of 6/30/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| USBLX Return (NAV) | 0.3% | 9.1% | 14.6% | 12.2% | 6.6% | 8.2% |
| USBLX Grade | C | A | A | A | A | A |
| +/- Category | 0.2% | 3.8% | 3.3% | 2.1% | 1.8% | 2.0% |
| Moderately Conservative Allocation Avg | 0.1% | 5.3% | 11.3% | 10.1% | 4.9% | 6.2% |
| USBLX Tax Cost Ratio | na | na | 0.9% | 0.6% | 0.7% | 0.6% |
USBLX Annual NAV Total ReturnsData as of 6/30/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| USBLX Return (NAV) | 6.7% | 10.3% | 13.3% | 16.1% | -15.8% | 14.8% | 10.8% | 18.5% | -1.9% | 13.5% | 5.4% |
| USBLX Grade | A | F | A | A | F | A | B | A | A | A | D |
| +/- Category | 1.5% | -1.2% | 5.0% | 6.1% | -4.0% | 4.8% | 2.7% | 2.9% | 2.4% | 3.6% | -3.1% |
| Moderately Conservative Allocation Avg | 5.1% | 11.5% | 8.3% | 10.0% | -11.8% | 10.0% | 8.0% | 15.6% | -4.3% | 9.8% | 8.5% |
| Risk Measures | |
| Standard Deviation: | 9.3% |
| Total Risk Index: | 0.76 - Below Average |
| Category Risk Index: | 1.27 - High |
| Category Risk Grade: | F (98% Rank) |
| Beta: | 0.91 |
| R-Squared: | 83% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Large-Cap Blend |
| Bond Investment Style: | High Quality Extensive Sensitivity |
| Yield: | 2.2% |
| Dividend Distribution: | Quarterly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $931 Mil |
| Fund Total Assets: | $ 806 Mil |
| Share Class Type: | No Load |
| Portfolio Turnover: | 16% |
Management Team
| Number of Managers: 5 | |||
| Longest Tenure: 7.0 years | |||
| Average Tenure: 5.4 years | |||
| Managers (Year): Dhillon Mannik (2019), Hattman Andrew (2019), Spalten Lauren (2021), Dunlap Lela (2022), Humphrey Lance (2022) | |||
Portfolio Composition (as of 3/31/26)
| # of Holdings: | 798 |
| % in Top 10 Holdings: | 17.4% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 0.2% |
Portfolio Allocation |
|
| Domestic Stock: | 46.7% |
| Foreign Stock: | 0.2% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 52.1% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 1.0% |
Purchase Information
| Fund Family: | Victory Capital Management Inc. |
| Phone Number: | 800-235-8396 |
| Website: | www.usaa.com |
| Status: | Open |
| Inception Date: | January 11, 1989 |
| Min. Initial Purchase: | $3,000 |
| 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: | na |
Expenses and Fees | |
| Expense Ratio (%): | 0.50% ( Rating : Avg ) |
| Category Average Expense Ratio (%): | 1.01% |
| Share Class: | Victory Growth and Tax Strategy |
| Min. Subsequent Purchase: | $ 50 |
| Min. Subsequent IRA Purchase: | $ 0 |
