Fund Evaluator:
Victory VA Bond (USVAX)
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Best Performing in Muni Single State Interm Over the Last Year
| 7.0% | Victory VA Bond (USVAX) |
| 6.9% | Dupree AL Tax-Free Income (DUALX) |
| 6.5% | Dupree TN Tax-Free Income (TNTIX) |
| 5.9% | Dupree KY Tax-Free Income (KYTFX) |
| 5.6% | Dupree NC Tax-Free Income (NTFIX) |
Fund Details
Victory VA Bond Overview
Victory VA Bond (USVAX) is an actively managed Municipal Bond Muni Single State Interm fund. Victory Capital Management Inc. launched the fund in 1990.
The investment seeks to provide Virginia investors with a high level of current interest income that is exempt from federal and Virginia state income taxes. The fund invests primarily in long-term investment-grade securities issued by the Commonwealth of Virginia, its political subdivisions, instrumentalities, and by other government entities, the interest on which is excludable from gross income for federal income tax and Virginia state income tax purposes. At least 80% of the fund's net assets will consist of Virginia tax-exempt securities. The fund's dollar-weighted average portfolio maturity is not restricted, but is expected to be greater than 10 years.
About Victory VA Bond (USVAX)
There are 2 members of the management team with an average tenure of 6.26 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 Virginia Muni Debt Fund index with a weighting of 100%. Victory VA Bond has 168 securities in its portfolio. The top 10 holdings constitute 22.7% 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 VA Bond is part of the Fixed Income global asset class and is within the Municipal Bond fund group. Victory VA Bond has 2.5% 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 99.9% (97.4% domestic bond, 2.5% foreign bond and 0.0% convertible bond). Victory VA Bond has 0.1% of the portfolio in cash.
Assets Under Management
The fund has $448 million in total assets, which is above the $85 million average for the Muni Single State Interm 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.
USVAX 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 VA Bond expense ratio is average compared to funds in the Muni Single State Interm category. Victory VA Bond has an expense ratio of 0.55%, which is 34% 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 VA Bond has a portfolio turnover rate of 6%, indicating that holds its assets around 0.2 years. By way of comparison, the average portfolio turnover is 41% for the Muni Single State Interm category.
Recently, in the month of July 2026, Victory VA Bond returned -2.4%, which earned it a grade of F, as the Muni Single State Interm category had an average return of -1.7%. 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 VA Bond has a trailing yield of 3.26%, which is above the 3.00% 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 VA Bond Grades
Year to date, the fund has returned 1.2%, 0.9 percentage points better than the category, which translates into a grade of A. The fund has returned 7.0% over the past year (grade of A), 3.0% over the past three years (grade of B) and 0.3% per year over the past five years (grade of C) and 1.6% per year over the past 10 years (grade of B).
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USVAX 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 |
|
| USVAX Return (NAV) | -2.4% | -0.4% | 7.0% | 3.0% | 0.3% | 1.6% |
| USVAX Grade | F | A | A | B | C | B |
| +/- Category | -0.7% | 0.2% | 2.0% | 0.4% | 0.1% | 0.4% |
| Muni Single State Interm Avg | -1.7% | -0.6% | 5.0% | 2.6% | 0.2% | 1.3% |
| USVAX Tax Cost Ratio | na | na | 0.0% | 0.0% | 0.0% | 0.0% |
USVAX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| USVAX Return (NAV) | 1.2% | 2.6% | 2.0% | 6.5% | -9.8% | 2.0% | 4.4% | 6.2% | 0.8% | 4.6% | 0.8% |
| USVAX Grade | A | F | A | A | F | A | B | B | C | A | A |
| +/- Category | 0.9% | -1.5% | 1.2% | 2.0% | -2.0% | 1.4% | 0.3% | 0.4% | -0.0% | 1.1% | 0.7% |
| Muni Single State Interm Avg | 0.3% | 4.0% | 0.9% | 4.5% | -7.7% | 0.5% | 4.2% | 5.7% | 0.8% | 3.5% | 0.1% |
| Risk Measures | |
| Standard Deviation: | 7.3% |
| Total Risk Index: | 0.59 - Below Average |
| Category Risk Index: | 1.46 - High |
| Category Risk Grade: | F (99% Rank) |
| Beta: | 1.26 |
| R-Squared: | 97% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | na |
| Bond Investment Style: | High Quality Moderate Sensitivity |
| Yield: | 3.3% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $482 Mil |
| Fund Total Assets: | $ 449 Mil |
| Share Class Type: | No Load |
| Portfolio Turnover: | 6% |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 7.1 years | |||
| Average Tenure: 6.3 years | |||
| Managers (Year): Hattman Andrew (2019), Spalten Lauren (2021) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 168 |
| % in Top 10 Holdings: | 22.7% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 2.5% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 97.4% |
| Foreign Bond: | 2.5% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 0.1% |
Purchase Information
| Fund Family: | Victory Capital Management Inc. |
| Phone Number: | 800-235-8396 |
| Website: | www.usaa.com |
| Status: | Open |
| Inception Date: | October 10, 1990 |
| 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 (%): | 0.55% ( Rating : Avg ) |
| Category Average Expense Ratio (%): | 0.84% |
| Share Class: | Victory VA Bond |
| Min. Subsequent Purchase: | $ 50 |
| Min. Subsequent IRA Purchase: | $ 0 |
