On the fixed-income side, USAA has focused on their “bread and butter,” bringing their credit, taxable income strategies to the ETF space through USTB and UITB. The new actively managed fixed income ETFs incorporate USAA’s decades of experience in Core Bond categories, with the USAA Core Intermediate-Term Bond ETF focusing on high current income without undue risk to principal and the USAA Core Short-Term Bond ETF targeting high current income consistent with preservation of capital.
Meanwhile, the new smart beta lineup focuses on the value and momentum factors, identifying stocks with attractive valuations and positive price momentum and weighting the two factors in such a way to help investors diversify against the risk of individual holdings.
The smart beta ETFs use “value and momentum – two factors we believe to be a core part of an investment portfolio, and pairing them in a way to balance risk,” Humphrey said.
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