USAA has launched two funds that address inflation and interest rate concerns.
The USAA Real Return Fund invests in a diversified range of asset classes sensitive to inflation, including U.S. Treasury Inflation Protected Securities, bank loans, floating-rate notes, high-yield bonds, precious metals and minerals, equities, real estate investment trusts and commodity-linked investments.
The USAA Ultra Short-Term Bond Fund is designed for risk-averse investors concerned about risking interest rates in that it invests in shorter-maturity bonds and is therefore able to reprice quickly.
“Many investors look for solutions that help them address the current market and economic fluctuations,” said Dan McNamara, president of USAA. “These funds are designed to provide strategic solutions to address two timely market-related concerns: low yields on money market funds and the potential for inflation. With many investors losing a significant portion of their equities balance in the last two years, finding ways to regain ground is critical, particularly for investors who are nearing retirement age.”