Back to top

Image: Bigstock

3 Best TIAA Mutual Funds to Strengthen Your Portfolio

Read MoreHide Full Article

Founded in 1918 by Andrew Carnegie, the Teachers Insurance and Annuity Association of America-College Retirement Equities Fund (TIAA, formerly TIAA-CREF) has emerged as a venerable institution in the financial sector. With an impressive $1.2 trillion in assets under its management, TIAA serves a vast client base of 4.7 million individual customers encompassing retirement and retail sectors.

Notably, TIAA upholds a commitment to customer-centric practices, with all mutual funds carrying a 0.35% average expense ratio and a noteworthy distinction of being entirely composed of no-load funds. TIAA's reliability, substantial assets and customer-centered approach make it an appealing choice for investment.

Also, mutual funds, in general, diversify one’s portfolio without several commission charges that are mainly associated with stock purchases and trim transaction costs (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).

We have, thus, chosen three TIAA mutual funds that investors should buy now for the long term. These funds have a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), positive three-year and five-year annualized returns, minimum initial investments within $5000, and expense ratios considerably lower than the category average. So, these funds have provided a comparatively stronger performance and carry a lower fee.

TIAA-CREF Large Cap Value Fund (TRLCX - Free Report) invests most of its assets in equity securities large-cap companies. TRLCX advisors also invest in companies with market capitalization identical to those included on the Russell 1000 Value Index and in securities of companies believed to be undervalued.

Charles J Carr has been the lead manager of TRLCX since Nov 15, 2018. Most of the fund's holdings were in companies like Johnson & Johnson (3.4%), JPMorgan Chase & Co. (3.3%) and Exxon Mobil Corp (2.7%) as of Apr 30, 2023.

TRLCX's 3-year and 5-year annualized returns are 15.6% and 7.6%, respectively. Its net expense ratio is 0.65% compared with the category average of 0.94%. TRLCX has a Zacks Mutual Fund Rank #1.

To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.

TIAA-CREF Quant Small-Cap Equity Fund (TSRPX - Free Report) invests most of its assets in equity securities of small-cap companies that fall within the range of the Russell 2000 Index. TSRPX advisors also invest in foreign investments.

Pei Chen has been the lead manager of TSRPX since Mar 1, 2016. Most of the fund's holdings were in companies like Comfort Systems USA, Inc. (1%), e.l.f. Beauty, Inc. (1%) and Shockwave Medical, Inc. (0.9%) as of Apr 30, 2023.

TSRPX's 3-year and 5-year annualized returns are 17.3% and 6.9%, respectively. Its net expense ratio is 0.57% compared with the category average of 1.03%. TSRPX has a Zacks Mutual Fund Rank #1.

TIAA-CREF Social Choice Equity Fund (TICRX - Free Report) seeks returns similar to the Russell 3000 Index. TICRX advisors invest its assets in equity securities issued by companies after giving particular consideration to certain ESG criteria.

Darren Tran has been the lead manager of TICRX since May 1, 2022. Most of the fund's holdings were in companies like Microsoft Corp (6.1%), NVIDIA Corp (2.1%) and The Procter & Gamble Co (1.4%) as of Apr 30, 2023.


TICRX's 3-year and 5-year annualized returns are 12.3% and 10.9%, respectively. Its net expense ratio is 0.42% compared to the category average of 0.84%. TICRX has a Zacks Mutual Fund Rank #1.
 

Want key mutual fund info delivered straight to your inbox?
 

Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>


 


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Nuveen LargeCap Value Retire (TRLCX) - free report >>

Nuveen LC Respons Eq A (TICRX) - free report >>

Nuveen Quant SC Equity Prem (TSRPX) - free report >>

Published in