Victory Funds Review: Performance, Fees, and Top Victory Capital Mutual Funds (2026)

This in-depth review examines
Victory Funds’ performance track record, expense ratios, fee structures,
top-rated funds, and how the Victory Capital fund family compares to other
leading mutual fund providers in 2026. Whether you are evaluating Victory Funds
for a retirement portfolio, taxable brokerage account, or institutional
allocation, this guide aims to provide the factual, data-driven insights you
need.

What Are Victory Funds?

Victory Funds is the mutual fund
brand of Victory Capital Management, Inc., a publicly traded, independent
investment management firm headquartered in San Antonio, Texas. The company
went public on the Nasdaq in 2018 under the ticker symbol VCTR and has since
expanded its investment platform through both organic growth and strategic
acquisitions.

Victory Capital follows a
multi-boutique investment model, meaning it houses multiple investment teams
referred to as “investment franchises” each operating with a
distinct investment philosophy and process. This structure allows for
significant diversity in product offerings across asset classes, geographies,
and investment styles.

Victory Capital at a Glance

Victory Capital manages assets
across more than 40 states and serves a diversified client base including
retail investors, financial intermediaries, retirement plan sponsors, and
sovereign wealth funds.

Victory Capital’s Multi-Boutique Structure

Understanding the architecture of
Victory Capital is important before evaluating individual Victory Funds. The
multi-boutique model means that not all Victory Funds are managed the same way
each franchise brings a unique investment team, philosophy, and process.

Key Investment Franchises Within Victory Capital

This structure generally allows
Victory Capital to offer specialization that larger, more centralized asset
managers may not replicate. However, it also means that the quality of fund
management can vary significantly across the platform.

Top Victory Funds to Consider in 2026

Below is an overview of some of
the most widely followed Victory Funds based on AUM, Morningstar ratings, and
general investor interest. Performance figures are approximate and based on
available trailing return data as of late 2025. Always verify current data with
the fund’s official prospectus or a financial data provider.

1. Victory RS Small Cap Growth Fund (RSEGX)

Managed by the RS Investments
franchise, this fund targets small-capitalization U.S. companies with strong
growth profiles. It has historically been one of Victory Capital’s more
prominent equity offerings in the small-cap growth category.

• Morningstar Category: Small Growth
• Expense Ratio: Approximately 1.12% (Class A shares; check current prospectus)
• Strategy: Bottom-up fundamental research focused on earnings momentum and competitive positioning
• Minimum Investment: Typically $1,000 for retail share classes

2. Victory Integrity Mid-Cap Value Fund (MIVAX)

This fund seeks capital
appreciation by investing in mid-cap companies perceived to be undervalued
relative to their intrinsic worth. It is managed under the Integrity Viking
Funds franchise.

•
Morningstar Category: Mid-Cap Value

•
Expense Ratio: Approximately 1.10%–1.20%
(Class A shares)

•
Strategy: Value-oriented, bottom-up stock
selection

•
Focus: Companies with strong balance sheets
and attractive valuations

3. Victory USAA Income Fund (USAIX)

Part of the legacy USAA
Investments franchise acquired by Victory Capital in 2019, this fixed income
fund aims to provide current income with relative capital stability. It is
particularly popular among conservative investors and retirees.

•
Morningstar Category: Intermediate Core Bond

•
Expense Ratio: Approximately 0.45%–0.55%
(varies by share class)

•
Strategy: Investment-grade bonds with
managed duration

•
Minimum Investment: Typically $3,000

4. Victory Munder Mid-Cap Core Growth Fund (MGOAX)

Managed by the Munder Capital
Management franchise, this fund targets mid-cap U.S. stocks with growth
characteristics. It tends to favor companies with durable competitive
advantages and above-average earnings growth potential.

•
Morningstar Category: Mid-Cap Growth

•
Expense Ratio: Approximately 1.15% (Class A
shares)

•
Strategy: Growth-oriented, blend of
quantitative screening and fundamental analysis

5. Victory THB US Small Opportunities Fund (THBOX)

THB Asset Management focuses on
small-cap U.S. equities with a research-intensive approach. This fund may
appeal to investors seeking exposure to smaller, potentially less-covered
segments of the equity market.

•
Morningstar Category: Small Blend

•
Expense Ratio: Approximately 1.20% (Class A
shares)

•
Strategy: Fundamental small-cap research
with quality screens

Victory Funds Fee Structure and Expense
Ratios

One of the most important factors
in evaluating mutual funds is the total cost of ownership. Victory Funds charge
expenses consistent with actively managed mutual funds, though costs vary
considerably by share class, franchise, and strategy.

Understanding Victory Funds Share Classes

Like most mutual fund families,
Victory Funds typically offer multiple share classes. The most common are:

CDSC refers to a Contingent
Deferred Sales Charge, which applies if shares are redeemed within a specified
holding period. Always check the specific fund prospectus for precise fee
disclosures.

Additional Fees to Be Aware Of

• 12b-1 Fees: Some share classes carry 12b-1 distribution fees of up to 1.00% annually, included in the expense ratio
• Redemption Fees: Certain Victory Funds may charge short-term redemption fees (typically 1%–2%) on shares held for less than 30 to 90 days
• Transaction Fees: Brokerage-specific transaction fees may apply depending on where shares are purchased
• Breakpoints: Class A share sales loads aretypically reduced at investment breakpoints (e.g., $25,000, $50,000, $100,000 thresholds)

Victory Funds Performance Overview

Evaluating the performance of
Victory Funds requires examining individual funds rather than the family as a
whole, since the multi-boutique structure results in significant performance
variation across strategies.

General Performance Observations

Victory Funds in the small-cap and mid-cap
growth categories have generally shown competitive trailing returns during
certain market cycles, particularly periods favoring growth equities

• Fixed income offerings from the USAA franchise have typically maintained competitive yields relative to category peers while managing interest rate risk
• Value-oriented funds from the Ceredex and Integrity franchises have periodically lagged growth peers during extended bull markets but may offer relative resilience in downturns
• International and emerging market exposure through THB and NewBridge franchises adds diversification potential, though with higher volatility profiles

Illustrative Trailing Returns by Category (Approximate – as of late 2025)

Note: The ranges above are general
approximations for the fund categories and should not be taken as specific fund
performance guarantees. Individual Victory Funds within each category may
perform above or below these ranges. Always refer to official fund fact sheets
or Morningstar data for verified performance figures.

Risk-Adjusted Performance Considerations

When evaluating Victory Funds,
consider these risk-adjusted metrics in addition to raw returns:

• Sharpe Ratio: Measures return relative to volatility; higher is generally better for risk-conscious investors
• Morningstar Risk-Adjusted Rating: Victory Funds receive Morningstar star ratings (1–5 stars) based on risk-adjusted trailing performance relative to category peers
• Standard Deviation: Indicates volatility; small-cap and growth strategies typically carry higher standard deviations
• Alpha: Measures performance relative to a benchmark; active funds aim for positive alpha, though this is not consistently achieved

Victory Funds vs. Competing Mutual Fund
Families

To help put Victory Funds in
broader context, the table below offers a general comparison with other major
mutual fund providers commonly available to U.S. investors.

Victory Funds generally occupy the
middle ground offering more specialized strategies than large passive fund
providers while maintaining a broad enough lineup to serve multiple investment
needs. Their competitive advantage is most visible in niche equity categories
and the legacy USAA fixed income lineup.

Pros and Cons of Investing in Victory Funds

Potential Advantages

• Multi-boutique model allows access to specialized investment teams with distinct approaches
• Broad fund lineup spans equity, fixed income, alternatives, and solutions categories
• Legacy USAA funds offer a reputable fixed income and balanced fund platform
• Institutional share classes (I, R6) may carry competitive expense ratios
• Available on many major brokerage platforms and within employer retirement plans
• Small-cap and mid-cap growth funds have historically offered category-competitive returns during favorable cycles

Potential Drawbacks

• Class A and Class C shares carry sales loads and higher expense ratios that may reduce net returns
• Active management fees are higher than comparable index fund alternatives in most categories
• Performance consistency varies significantly across franchises and time periods
• Less name recognition than industry giants like Vanguard, Fidelity, or Hartford funds
• The acquisition-driven growth model may introduce integration risk or strategy drift over time
• Some funds have relatively small AUM, which can limit liquidity and operational scale

How to Invest in Victory Funds?

Victory Funds can typically be
purchased through several channels:

• Through a Financial Advisor: Many Victory Funds Class A and C shares are distributed through registered investment advisors and broker-dealers
• Directly Through Victory Capital: Certain funds may be available through Victory Capital’s direct investor services platform
• Through a Brokerage Account: Many major brokerage platforms (Fidelity, Schwab, TD Ameritrade, E*TRADE) offer Victory Funds, sometimes with no transaction fees under NTF (No Transaction Fee) programs
• Within Employer Retirement Plans: Victory Funds, particularly R6 share class funds, are available within many 401(k) and 403(b) retirement plan menus
• Through IRAs: Victory Funds are generally available for purchase within Traditional IRA, Roth IRA, and SEP IRA accounts at brokerages that carry them

Is Victory Capital a Reputable Asset
Manager?

Victory Capital is a registered
investment adviser with the U.S. Securities and Exchange Commission (SEC). As a
publicly traded company on Nasdaq (VCTR), it is subject to rigorous regulatory
and financial disclosure requirements.

The firm has maintained a
generally stable business profile since its IPO in 2018, growing AUM through
both acquisitions and organic growth. The 2019 acquisition of USAA’s asset
management business was a significant expansion, adding scale and a
well-regarded lineup of retirement-oriented funds to the Victory platform.

Victory Capital has received
industry recognition for certain funds and strategies, including Morningstar
ratings across various fund categories. However, as with any active manager,
the quality of individual funds remains heterogeneous, and no single fund
family guarantee of consistent outperformance should be assumed.

Key Factors to Evaluate Before Investing in
Any Victory Fund

Before selecting a specific
Victory Fund for your portfolio, consider reviewing the following:

• Expense Ratio: Confirm the total annual expense ratio and understand what share class you are purchasing
• Sales Load: Determine whether a front-end or back-end load applies and calculate its impact on your investment
• Investment Objective: Ensure the fund’s stated objective aligns with your financial goals and risk tolerance
• Portfolio Holdings: Review the fund’s top holdings and sector allocations relative to your existing diversification
• Historical Performance: Compare trailing returns to benchmark indices and category peers over 1-, 3-, 5-, and 10-year periods
• Manager Tenure: For actively managed funds, research how long the current portfolio manager has been in place
• Fund AUM: Very small funds (under $50 million) may carry higher operational risks or be subject to closure
• Tax Efficiency: For taxable accounts, review the fund’s capital gains distribution history

Frequently Asked Questions (FAQs)

1. Are Victory Funds the same as USAA Funds?

Ans. Not entirely, but they are
related. Victory Capital acquired the USAA asset management business in 2019.
The USAA-branded funds were subsequently rebranded under the Victory Funds
umbrella. However, not all Victory Funds were formerly USAA products, Victory
Capital manages many additional strategies through its other investment
franchises.

2. What is the minimum investment for Victory Funds?

Ans. Minimum investment requirements
vary by fund and share class. For most retail Class A share classes, the
minimum is typically $1,000 to $2,500. Institutional share classes generally
require higher minimums, often $1 million or more. Retirement plan participants
may have lower or waived minimums depending on the plan.

3. Are Victory Funds actively or passively managed?

Ans. The majority of Victory Funds are
actively managed, meaning professional portfolio managers make individual
security selection decisions rather than simply tracking a benchmark index.
Victory Capital does offer some index-tracking and factor-based strategies, but
active management is the predominant approach across the fund family.

4. How do Victory Funds expense ratios compare to industry averages?

Ans. Victory Funds’ expense ratios for
actively managed strategies are generally in line with or slightly above
industry averages for active mutual funds. According to Morningstar industry
data, the average expense ratio for actively managed U.S. equity funds is
typically in the 0.70%–1.20% range, which broadly corresponds to Victory Funds
Class A pricing. Institutional shares tend to be more competitively priced.

5. Can I buy Victory Funds in an IRA or 401(k)?

Ans. Yes. Victory Funds are generally
available for purchase within IRAs (Traditional, Roth, SEP) at brokerages that
offer them. Many Victory Funds are also available within employer-sponsored
401(k) and 403(b) retirement plans, typically in institutional or R6 share
classes at lower expense ratios.

6. Does Victory Capital offer ETFs?

Ans. Yes. In addition to mutual funds,
Victory Capital has expanded its ETF platform, offering both actively managed
and rules-based ETFs under the Victory Shares brand. These ETFs cover equity
and fixed income strategies and are traded on exchanges with no sales load. The
ETF lineup is a growing component of the Victory Capital product platform.

7. Where can I find the latest Victory Funds performance data?

Ans. The most current and accurate
performance data for Victory Funds can be found on the official Victory Capital
website (vcm.com), through financial data providers such as Morningstar, and
via major brokerage platform fund screeners. Always review the fund’s most
recent prospectus and shareholder report for verified performance information.

Conclusion: Are Victory Funds Right for
You?

Victory Funds represent a broad,
professionally managed mutual fund family with meaningful diversity across
equity, fixed income, and alternative investment strategies. The multi-boutique
structure provides access to specialized investment teams that may offer
differentiated approaches not always available from larger, more centralized
asset managers.

However, like any active fund
family, Victory Funds come with higher fees than passive alternatives, and
performance results vary considerably across strategies and time periods.
Investors considering Victory Funds should carefully evaluate individual fund
costs, performance relative to relevant benchmarks, manager track records, and
alignment with personal investment objectives.

For investors who prioritize
specialized active management, niche equity strategies, or who have legacy USAA
accounts, Victory Funds may represent a reasonably well-structured option. For
those primarily focused on minimizing costs, broad-market passive strategies
from providers like Vanguard or Fidelity may generally offer a more
cost-efficient alternative.

As always, consider consulting
with a registered financial advisor before making specific investment
decisions. Investment in mutual funds involves risk, including the possible
loss of principal.