USAA Funds Selling on E*Trade

The USAA funds are being sold to E*Trade brokerage investors with no loads or transaction fees. They do have a 12(b)1 fee of 25 basis points and an early redemption fee of $49.99.

Eighty-three percent of USAA bond funds and 76% of our mutual funds beat their Lipper category average for one-year returns for the period ending June 30, 2010, the company says.

USAA Investment Management had some $43 billion in mutual fund assets and $6 billion in managed accounts as of June 30. While USAA property and casualty services are available with certain restrictions to U.S. military personnel and their family members, its financial services do not have such restrictions, a spokesperson said by phone.

USAA has 7.7 million members, and it also has distribution agreements for its mutual funds with TD Ameritrade, Vanguard and Pershing.

E*Trade said that in August its net new brokerage assets were $0.4 billion, totaling $5.2 billion year-to-date. During the month, customer security holdings decreased 3%, or $3.2 billion, and brokerage-related cash declined by $0.5 billion to $20.7 billion, with customers as net buyers of approximately $1.0 billion in securities in August.