USAA AGGRESSIVE GROWTH FUND
QUARTERLY COMMENTARY
As of December 31, 2021
Market Commentary Large-cap growth stocks returned 11.64% as gauged by the
Russell 1000 Growth Index, outperforming their value
Despite a number of headwinds to sentiment, US equities counterparts as reflected in the 7.77% return for the Russell
posted solid gains in the fourth quarter as reflected in the 1000 Value Index. All 11 sectors of the Russell 1000 Growth
11.03% return for the bellwether S&P 500 Index. The markets finished in positive territory. In sector terms, contributions to
faced a shift in US Federal Reserve (Fed) policy as persistent performance within the benchmark were led by information
inflation driven by supply chain issues and rising commodity technology, which comprises approximately 45% of the Index by
prices led the central bank to announce and subsequently market capitalization.
accelerate the tapering of its bond purchases that have helped
keep longer-term borrowing costs low. In addition, the Fed Fund Performance and Positioning
began to signal the likelihood of two or more hikes in its The USAA Aggressive Growth Fund posted a positive return while
benchmark overnight lending rate in 2022, representing a moving underperforming its benchmark, the Russell 1000 Growth Index.
forward of the prior timetable. Prolonged negotiations over
President Biden’s Build Back Better spending bill put into Stock selection detracted from the Fund’s performance relative to
question a source of anticipated fiscal stimulus. Finally, investors the benchmark for the quarter, while sector allocation was
had to contend with the rapid emergence and spread of the essentially a neutral factor. Selection within information
Omicron variant of COVID-19, which threatened a new wave of technology weighed most heavily on return, followed by
lockdowns. Nonetheless, most major US equity indices closed industrials and consumer discretionary.
2021 at or near all-time highs, supported by robust corporate
profits and investor inflows given fixed income yields that
remained unattractive.
Carefully consider a fund's investment objectives, risks, The Russell 1000 Growth Index is a market-capitalization-weighted
charges and expenses before investing. To obtain a index that measures the performance of Russell 1000 Index companies
prospectus or summary prospectus containing this and with higher price-to-book ratios and higher forecasted growth values.
An index is unmanaged and not available for direct investment;
other important information, visit www.vcm.com/prospectus.
therefore, its performance does not reflect the expenses associated with
Read it carefully before investing.
the active management of an actual portfolio.
Not all share classes are available to all investors.
Victory Capital means Victory Capital Management Inc., the investment
All investing involves risk, including the potential loss of adviser of the Victory Capital mutual funds and USAA Mutual Funds.
principal. International investments may involve risk of capital loss from Victory Capital mutual funds and USAA Mutual Funds are distributed by
unfavorable fluctuation in currency values, from differences in generally Victory Capital Services, Inc. (VCS), member FINRA, an affiliate of Victory
accepted accounting principles or from economic or political instability in Capital. Victory Capital and its affiliates are not affiliated with United
other nations. Emerging markets involve heightened risks related to the Services Automobile Association or its affiliates. USAA and the USAA
same factors as well as increased volatility and lower trading volume. The logos are registered trademarks and the USAA Mutual Funds and USAA
value of your investment is also subject to geopolitical risks such as Investments logos are trademarks of United Services Automobile
wars, terrorism, environmental disasters, and public health crises; the risk Association and are being used by Victory Capital and its affiliates under
of technology malfunctions or disruptions; and the responses to such license.
events by governments and/or individual companies. ©2022 Victory Capital Management Inc.
The opinions are as of the date noted and are subject to change at any V19.131 // 4Q 2021 USAA Aggressive Growth Fund COM
time due to changes in market or economic conditions. The comments
should not be construed as a recommendation of individual holdings or
market sectors, but as an illustration of broader themes.
Discussion based on the Fund share class. Other classes have different
performance characteristics.
Holdings, if any, are subject to change without notice and should not be
considered purchase recommendations.
Not FDIC Insured • May Lose Value • No Bank Guarantee
20220126-1984512
