Fund Evaluator:
Victory Tax Exempt Long-Term (USTEX)
Follow This Fund
Best Performing in Muni National Long Over the Last Year
| 9.2% | Victory Tax Exempt Long-Term (USTEX) |
| 8.6% | Vanguard High-Yield Tax-Exempt Adm (VWALX) |
| 8.5% | Vanguard High-Yield Tax-Exempt (VWAHX) |
| 8.3% | T. Rowe Price Tax-Free Income Inv (PRTAX) |
| 8.2% | T. Rowe Price Summit Municipal Inc Inv (PRINX) |
Fund Details
Victory Tax Exempt Long-Term Overview
Victory Tax Exempt Long-Term (USTEX) is an actively managed Municipal Bond Muni National Long fund. Victory Capital Management Inc. launched the fund in 1982.
The investment seeks interest income that is exempt from federal income tax. The fund invests primarily in investment-grade securities the interest from which is excludable from gross income for federal income tax (referred to herein as "tax-exempt securities"). During normal market conditions, at least 80% of its net assets will consist of tax-exempt securities. The fund's dollar-weighted average portfolio maturity is 10 years or more. At least 80% of the fund's annual net investment income dividends will be tax-exempt and excludable from the calculation of the federal alternative minimum tax for individual taxpayers.
About Victory Tax Exempt Long-Term (USTEX)
There are 2 members of the management team with an average tenure of 6.17 years: Andrew Hattman (2019), Lauren Spalten (2021). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: Bloomberg Municipal TR USD index with a weighting of 100% and Lipper General&Insured Muni Debt Funds index with a weighting of 100%. Victory Tax Exempt Long-Term has 549 securities in its portfolio. The top 10 holdings constitute 11.3% 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 Tax Exempt Long-Term is part of the Fixed Income global asset class and is within the Municipal Bond fund group. Victory Tax Exempt Long-Term has 0.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 100.0% (100.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Victory Tax Exempt Long-Term has 0.0% 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 Muni National Long 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.
USTEX 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 Tax Exempt Long-Term expense ratio is average compared to funds in the Muni National Long category. Victory Tax Exempt Long-Term has an expense ratio of 0.46%, which is 41% lower than its category average, making the fund expense ratio grade a B. 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. A portfolio turnover rate cannot be currently calculated for Victory Tax Exempt Long-Term. By way of comparison, the average portfolio turnover is 37% for the Muni National Long category.
Recently, in the month of June 2026, Victory Tax Exempt Long-Term returned 1.5%, which earned it a grade of A, as the Muni National Long category had an average return of 1.0%. 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 Tax Exempt Long-Term has a trailing yield of 3.62%, which is below the 3.62% category average. The fund normally distributes its income monthly 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 Tax Exempt Long-Term Grades
Year to date, the fund has returned 3.6%, 0.9 percentage points better than the category, which translates into a grade of A. The fund has returned 9.2% over the past year (grade of A), 4.7% over the past three years (grade of A) and 0.9% per year over the past five years (grade of B) and 2.2% per year over the past 10 years (grade of B).
For more mutual fund grades, analysis and screening tools to help your investment discovery, join AAII for a $2, full-access trial. Learn more here: https://invest.aaii.com/membership.
Otherwise, for more information about Victory Tax Exempt Long-Term, including its riskiness, submit your email to unlock the rest of the article.
Gain access to exclusive AAII member-only content.
USTEX 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 |
|
| USTEX Return (NAV) | 1.5% | 3.7% | 9.2% | 4.7% | 0.9% | 2.2% |
| USTEX Grade | A | A | A | A | B | B |
| +/- Category | 0.4% | 0.8% | 1.7% | 0.7% | 0.3% | 0.3% |
| Muni National Long Avg | 1.0% | 2.9% | 7.5% | 4.0% | 0.6% | 1.9% |
| USTEX Tax Cost Ratio | na | na | 0.0% | 0.0% | 0.0% | 0.0% |
USTEX Annual NAV Total ReturnsData as of 6/30/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| USTEX Return (NAV) | 3.6% | 3.3% | 2.9% | 7.3% | -12.4% | 3.6% | 5.2% | 7.5% | 0.8% | 5.8% | 0.6% |
| USTEX Grade | A | C | B | B | D | B | B | D | B | C | A |
| +/- Category | 0.9% | 0.2% | 0.4% | 0.4% | -0.8% | 0.8% | 0.4% | -0.6% | 0.1% | -0.0% | 0.4% |
| Muni National Long Avg | 2.8% | 3.0% | 2.5% | 6.8% | -11.6% | 2.8% | 4.7% | 8.1% | 0.7% | 5.8% | 0.2% |
| Risk Measures | |
| Standard Deviation: | 7.5% |
| Total Risk Index: | 0.61 - Below Average |
| Category Risk Index: | 1.16 - High |
| Category Risk Grade: | F (90% Rank) |
| Beta: | 1.32 |
| R-Squared: | 97% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | na |
| Bond Investment Style: | High Quality Extensive Sensitivity |
| Yield: | 3.6% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $1608 Mil |
| Fund Total Assets: | $1,548 Mil |
| Share Class Type: | No Load |
| Portfolio Turnover: | na |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 7.0 years | |||
| Average Tenure: 6.2 years | |||
| Managers (Year): Hattman Andrew (2019), Spalten Lauren (2021) | |||
Portfolio Composition (as of 3/31/26)
| # of Holdings: | 549 |
| % in Top 10 Holdings: | 11.3% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 0.0% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 100.0% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 0.0% |
Purchase Information
| Fund Family: | Victory Capital Management Inc. |
| Phone Number: | 800-235-8396 |
| Website: | www.usaa.com |
| Status: | Open |
| Inception Date: | March 19, 1982 |
| 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: | 0.00% |
Expenses and Fees | |
| Expense Ratio (%): | 0.46% ( Rating : Avg ) |
| Category Average Expense Ratio (%): | 0.78% |
| Share Class: | Victory Tax Exempt Long-Term |
| Min. Subsequent Purchase: | $ 50 |
| Min. Subsequent IRA Purchase: | $ 0 |
