USTEX vs. USAAX

Last updated Jun 23, 2026

USTEX (USAA Tax Exempt Long Term Fund) and USAAX (USAA Growth Fund) are both mutual funds - USTEX is a Municipal Bonds fund managed by Victory, while USAAX is a Large Cap Growth Equities fund managed by Victory. Over the past 10 years, USTEX returned 2.30%/yr vs 15.35%/yr for USAAX. At a 0.00 correlation, their price movements are largely independent. USTEX charges 0.46%/yr vs 0.84%/yr for USAAX.

Performance

USTEX vs. USAAX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in USAA Tax Exempt Long Term Fund (USTEX) and USAA Growth Fund (USAAX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, USTEX achieves a 2.97% return, which is significantly higher than USAAX's 0.74% return. Over the past 10 years, USTEX has underperformed USAAX with an annualized return of 2.30%, while USAAX has yielded a comparatively higher 15.35% annualized return.

USTEX

• 1D: 0.08%
• 1M: 2.50%
• YTD: 2.97%
• 6M: 3.38%
• 1Y: 9.08%
• 3Y*: 4.88%
• 5Y*: 0.90%
• 10Y*: 2.30%

USAAX

• 1D: 1.06%
• 1M: -2.13%
• YTD: 0.74%
• 6M: -0.02%
• 1Y: 15.21%
• 3Y*: 19.80%
• 5Y*: 11.06%
• 10Y*: 15.35%

*Multi-year figures are annualized to reflect compound growth (CAGR)

USTEX vs. USAAX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
USTEX USAA Tax Exempt Long Term Fund	2.97%	3.60%	3.51%	6.91%	-12.39%	3.53%	5.45%	7.49%	0.82%	5.44%
USAAX USAA Growth Fund	0.74%	16.68%	32.82%	48.39%	-32.49%	16.97%	37.07%	27.62%	-4.33%	28.44%

Correlation

The correlation between USTEX and USAAX is 0.18, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.18
Correlation (3Y) Calculated over the trailing 3-year period	0.10
Correlation (5Y) Calculated over the trailing 5-year period	0.10
Correlation (10Y) Calculated over the trailing 10-year period	0.04
Correlation (All Time) Calculated using the full available price history since Mar 19, 1982	0.00

The correlation between USTEX and USAAX shifts across timeframes, from 0.00 (all time) to 0.18 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

USTEX vs. USAAX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

USTEX

USTEX Risk / Return Rank: 75
USTEX Sharpe Ratio Rank: 86
USTEX Sortino Ratio Rank: 89
USTEX Omega Ratio Rank: 92
USTEX Calmar Ratio Rank: 58
USTEX Martin Ratio Rank: 51

USAAX

USAAX Risk / Return Rank: 11
USAAX Sharpe Ratio Rank: 12
USAAX Sortino Ratio Rank: 12
USAAX Omega Ratio Rank: 12
USAAX Calmar Ratio Rank: 9
USAAX Martin Ratio Rank: 10

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

USTEX vs. USAAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for USAA Tax Exempt Long Term Fund (USTEX) and USAA Growth Fund (USAAX). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	USTEX	USAAX	Difference
Sharpe ratio: Return per unit of total volatility	2.61	0.89	+1.72
Sortino ratio: Return per unit of downside risk	4.00	1.29	+2.71
Omega ratio: Gain probability vs. loss probability	1.65	1.16	+0.48
Calmar ratio: Return relative to maximum drawdown	2.79	0.86	+1.93
Martin ratio: Return relative to average drawdown	9.82	2.80	+7.02

USTEX vs. USAAX - Sharpe Ratio Comparison

The current USTEX Sharpe Ratio is 2.61, which is higher than the USAAX Sharpe Ratio of 0.89. The chart below compares the historical Sharpe Ratios of USTEX and USAAX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

USTEX vs. USAAX - Drawdown Comparison

The maximum USTEX drawdown since its inception was -20.42%, smaller than the maximum USAAX drawdown of -66.79%. Use the drawdown chart below to compare losses from any high point for USTEX and USAAX.

Drawdown Indicators

	USTEX	USAAX	Difference
Max Drawdown Largest peak-to-trough decline	-20.42%	-66.79%	+46.37%
Max Drawdown (1Y) Largest decline over 1 year	-3.27%	-16.92%	+13.65%
Max Drawdown (3Y) Largest decline over 3 years	-7.83%	-29.85%	+22.02%
Max Drawdown (5Y) Largest decline over 5 years	-17.95%	-41.75%	+23.80%
Max Drawdown (10Y) Largest decline over 10 years	-17.95%	-41.75%	+23.80%
Current Drawdown Current decline from peak	0.00%	-4.99%	+4.99%
Average Drawdown Average peak-to-trough decline	-2.85%	-18.80%	+15.95%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.93%	5.19%	-4.26%

Volatility

USTEX vs. USAAX - Volatility Comparison

The current volatility for USAA Tax Exempt Long Term Fund (USTEX) is 0.92%, while USAA Growth Fund (USAAX) has a volatility of 5.91%. This indicates that USTEX experiences smaller price fluctuations and is considered to be less risky than USAAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	USTEX	USAAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.92%	5.91%	-4.99%
Volatility (6M) Calculated over the trailing 6-month period	2.42%	12.77%	-10.35%
Volatility (1Y) Calculated over the trailing 1-year period	3.49%	16.38%	-12.89%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.71%	24.08%	-18.37%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.05%	22.15%	-17.10%

USTEX vs. USAAX - Expense Ratio Comparison

USTEX has a 0.46% expense ratio, which is lower than USAAX's 0.84% expense ratio.

Dividends

USTEX vs. USAAX - Dividend Comparison

USTEX's dividend yield for the trailing twelve months is around 3.63%, less than USAAX's 10.54% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
USAAX USAA Growth Fund	10.54%	10.62%	10.47%	6.54%	6.98%	10.34%	4.33%	26.15%	13.67%	2.47%	5.27%	6.92%
USTEX USAA Tax Exempt Long Term Fund	3.63%	4.04%	4.29%	3.33%	3.42%	2.66%	3.39%	3.42%	3.78%	3.54%	4.13%	3.86%

Frequently Asked Questions

Can I hold both USTEX and USAAX in my portfolio?

USTEX and USAAX have a correlation of 0.18, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, USTEX or USAAX?

USAAX has higher volatility (5.91%) compared to USTEX (0.92%). In terms of maximum drawdown, USTEX dropped -20.42% vs USAAX's -66.79%.

Which has better risk-adjusted returns?

USTEX currently has the higher Sharpe Ratio (2.61 vs 0.89), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.