Debra L. Jelilian
is primarily
responsible for the day-to-day management of the Extended Market Portfolio’s
investments.
Ms.
Jelilian,
managing
director of BlackRock since 2009, also has been a director of BlackRock since
2006 and has been a member of the Extended Market Portfolio’s management team
since 2000. Ms. Jelilian has 15 years’ experience in investing and managing
index investments.
The
statement of additional information provides additional information about the
portfolio manager’s compensation, other accounts managed, and ownership of Fund
securities.
APPOINTMENT
OF SUBADVISERS
We have
received an exemptive order from the Securities and Exchange Commission (SEC)
that permits us, subject to certain conditions, including prior approval of the
Fund’s Board of Trustees, to withdraw the Fund’s interest from the Extended
Market Portfolio and retain a subadviser to manage the Fund outside of a
master-feeder structure or subsequently to appoint and replace subadvisers,
enter into subadvisory agreements, and amend subadvisory agreements on behalf of
the Fund without shareholder approval. As a result, we can change the fee rate
payable to a subadviser or appoint a new subadviser at a fee rate different than
that paid to the current subadviser, which in turn may result in a different fee
retained by IMCO. We will notify shareholders within 90 days after hiring any
new subadviser for the Fund.
Prospectus
| 17
USING
MUTUAL FUNDS IN AN
INVESTMENT
PROGRAM
|
THE
IDEA BEHIND MUTUAL FUNDS
|
Mutual
funds provide advantages like professional management and diversification to all
investors. Regardless of whether you are just starting out or have invested for
years, your investment, large or small, buys you part of a diversified
portfolio. That portfolio is managed by investment professionals, relieving you
of the need to make individual stock or bond selections. You also enjoy
conveniences, such as daily pricing, liquidity, and in the case of the USAA
family of funds, no sales charge. The portfolio, because of its size, has lower
transaction costs on its trades than most individuals would have. As a result,
you own an investment that in earlier times would have been available only to
the wealthiest people.
|
USING
FUNDS IN AN INVESTMENT PROGRAM
|
In
choosing a mutual fund as an investment vehicle, you are giving up some
investment decisions, but must still make others. The decisions you don’t have
to make are those involved with choosing individual securities. An investment
adviser will perform that function. In addition, we will arrange for the
safekeeping of securities, auditing of the annual financial statements, and
daily valuing of the Fund, as well as other functions.
You,
however, retain at least part of the responsibility for an equally important
decision. This decision involves determining a portfolio of mutual funds that
balances your investment goals with your tolerance for risk. It is likely that
this decision may include the use of more than one fund of the USAA family of
funds.
PURCHASES
AND REDEMPTIONS
You may
open an account and make purchases on the Internet, by telephone, or by mail, as
described below. If opening by mail, you should return a complete, signed
application to open your initial account. However, after you open your initial
account with us, you will not need to fill out another application to invest in
another fund of the USAA
18
| USAA Extended Market Index Fund
family of
funds unless the registration is different or we need further information to
verify your identity.
As
required by federal law, we must obtain certain information from you prior to
opening an account. If we are unable to verify your identity, we may refuse to
open your account, or we may open your account and take certain actions without
prior notice to you, including restricting account transactions pending
verification of your identity. If we subsequently are unable to verify your
identity, we may close your account and return to you the value of your shares
at the next calculated net asset value (NAV).
To
purchase shares through your USAA brokerage account, please contact USAA
Brokerage Services directly. These shares will become part of your USAA
brokerage account and will be subject to the applicable policies and procedures.
Additional fees also may apply.
If your
Fund shares are purchased, exchanged, or redeemed through a retirement account
or an investment professional, the policies and procedures on these purchases,
exchanges, or redemptions may vary. A distribution fee may apply to all full IRA
distributions, except for those due to death, disability, divorce, or transfer
to other USAA lines of business. Partial IRA distributions are not charged a
distribution fee. Additional fees also may apply to your investment in the Fund,
including a transaction fee, if you buy or sell shares of the Fund through a
broker or other investment professional. For more information on these fees,
check with your investment professional.
|
TAXPAYER
IDENTIFICATION NUMBER
|
Each
shareholder named on the account must provide a Social Security number or other
taxpayer identification number to avoid possible tax withholding required by the
Internal Revenue Code. See
Taxes
on page xx
for additional tax information.
When you
make a purchase, your purchase price will be the NAV per share next determined
after we receive your request in proper form (
e.g.
,
complete, signed application and payment). The Fund’s NAV is determined as of
the close of the regular trading session (generally 4 p.m. Eastern time) of the
New York Stock Exchange (NYSE) each day it is open for trading. If we receive
your purchase request and payment prior to that time, your purchase price will
be the NAV per share deter-
Prospectus
| 19
mined for
that day. If we receive your purchase request or payment after that time, the
purchase will be effective on the next business day.
The Fund
or the Fund’s transfer agent may enter into agreements with third parties
(Servicing Agents), which hold Fund shares in omnibus accounts for their
customers, under which the Servicing Agents are authorized to receive orders for
Fund shares on the Fund’s behalf. Under these arrangements, the Fund will be
deemed to have received an order when an authorized Servicing Agent receives the
order. Accordingly, customer orders will be priced at the Fund’s NAV next
computed after they are received by an authorized Servicing Agent even though
the orders may be transmitted to the Fund by the Servicing Agent after the time
the Fund calculates its NAV.
$3,000
($250 for IRAs).
$50 per
transaction minimum, per account. Employees of USAA and its affiliated companies
may add to an account through payroll deduction for as little as $25 per pay
period with a $3,000 initial investment.
There are
no minimum initial or subsequent purchase payment amounts for investments in the
Fund through USAA Strategic Fund Adviser
®
, USAA
Private Investment Management
®
, USAA
College Savings Plan
®
, USAA
Federal Savings Bank Trust Department, USAA Global Opportunities Portfolio, or
other designated USAA managed investment accounts. In addition, the Fund may
waive or lower purchase minimums in other circumstances.
If you
plan to purchase Fund shares with a check, money order, traveler’s check, or
other similar instrument, the instrument must be written in U.S. dollars and
drawn on a U.S. bank. We do not accept the following foreign instruments:
checks, money orders, traveler’s checks, or other similar instruments. In
addition, we do not accept third-party checks, cash, or
coins.
In
addition, the Fund may elect to suspend the redemption of shares or postpone the
date of payment in limited circumstances
(e.g.,
if the
NYSE
is
closed or when permitted by order of the SEC).
20 | USAA Extended Market Index Fund
You may
redeem Fund shares by any of the methods described below on any day the NAV per
share is calculated. Redemptions are effective on the day instructions are
received in proper form. However, if instructions are received after the close
of the NYSE (generally 4 p.m. Eastern time), your redemption will be effective
on the next business day.
We will
send your money within seven days after the effective date of redemption.
Payment for redemption of shares purchased by electronic funds transfer (EFT) or
check is sent after the EFT or check has cleared, which could take up to seven
days from the purchase date. For federal income tax purposes, a redemption is a
taxable event; as such, you may realize a capital gain or loss. Such capital
gains or losses are based on the difference between your cost basis in the
shares originally purchased and the proceeds you receive upon their
redemption.
BUYING
AND SELLING FUND SHARES
INTERNET
– USAA.COM
n
To
establish access to your account, log on to
usaa.com
and click
on “register now” or call (800) 759-8722. Once you have established Internet
access to your account, you may use your personal computer, web-enabled
telephone, or PDA to perform certain mutual fund transactions by accessing our
website. You will be able to open and fund a new mutual fund account, make
purchases, exchange to another fund in the USAA
family of funds,
make redemptions, review account activity, check balances, and
more.
MOBILE
ACCESS – MOBILE.USAA.COM
n
Using
your web-enabled telephone, you may review account activity, check balances, and
make purchases and redemptions.
USAA
SELF-SERVICE TELEPHONE SYSTEM (800) 531-USAA (8722)
n
In
addition to obtaining account balance information, last transactions, current
fund prices, and return information for your Fund, you may use our USAA
self-service telephone system to access your Fund account to make selected
purchases, exchange to another fund in the USAA family of funds, or make
redemptions. This service is available with an Electronic Services Agreement
(ESA) and EFT Buy/Sell authorization on file.
Prospectus
| 21
TELEPHONE
n
Call
toll free (800) 531-USAA (8722) to speak with a member service representative.
Our hours of operation are Monday – Friday, 7:30 a.m. to 10 p.m. CT and
Saturday, 8 a.m. to 5 p.m. CT.
Telephone
redemption privileges are established automatically when you complete your
application. The Fund will employ reasonable procedures to confirm that
instructions communicated by telephone are genuine. Before any discussion
regarding your account, we will obtain certain information from you to verify
your identity. Additionally, your telephone calls may be recorded or monitored,
and confirmations of account transactions are sent to the address of record or
by electronic delivery to your designated e-mail address.
FAX
n
Send
a signed fax with your written redemption instructions to (800)
292-8177.
MAIL
n
If
you would like to open an account or request a redemption by mail, send your
application and check or written instructions to:
Regular
Mail:
USAA
Investment Management Company
P.O. Box
659453
San
Antonio, TX 78265-9825
Registered
or Express Mail:
USAA
Investment Management Company
9800
Fredericksburg Road
San
Antonio, TX 78240
BANK
WIRE
n
To add to your account or request a redemption by bank wire,
visit us at
usaa.com
or call
(800) 531-USAA (8722) for instructions. This helps to ensure that your account
will be credited or debited promptly and correctly. Foreign wires may be sent
only to accounts with the same registration and must be requested in
writing.
EFT
n
Additional
purchases on a regular basis may be deducted electronically from a bank account,
paycheck, income-producing investment,
22 | USAA Extended Market Index Fund
or USAA
money market fund account. Sign up for these services when opening an account or
log on to
usaa.com
or call
(800) 531-USAA (8722) to add them.
USAA
BROKERAGE SERVICES
n
To
purchase new and additional shares or to request a redemption in your USAA
brokerage account, log on to
usaa.com
or call
USAA Brokerage Services at (800) 531-USAA (8722) for instructions. Any purchase
or redemption request received in good order prior to the close of the NYSE
(generally 4 p.m. Eastern time) will receive the NAV per share determined for
that day, subject to the applicable policies and procedures.
EXCHANGES
The
exchange privilege is automatic when you complete your application. You may
exchange shares among funds in the USAA family of funds, provided the shares to
be acquired are offered in your state
of
residence.
Exchanges
made through the USAA self-service telephone system and the Internet require an
ESA on file. After we receive the exchange orders, the Fund’s transfer agent
will simultaneously process exchange redemptions and purchases at the share
prices next determined pursuant to the procedures set forth herein. See
Effective Date on page x. The investment minimums applicable to share purchases
also apply to exchanges. For federal income tax purposes, an exchange between
funds is a taxable event; as such, you may realize a capital gain or loss. Such
capital gains or losses are based on the difference between your cost basis in
the shares originally purchased and the price of these shares when they are
exchanged.
If your
shares are held in your USAA brokerage account, please contact USAA Brokerage
Services regarding exchange policies. These shares will become part of your USAA
brokerage account, and any exchange request received in good order prior to the
close of the NYSE (generally 4 p.m. Eastern time) will receive the NAV per share
determined for that day, subject to the applicable policies and
procedures.
The Fund
has undertaken certain authentication procedures regarding telephone
transactions as previously described. In addition, the Fund
Prospectus | 23
reserves
the right to terminate or change the terms of an exchange offer.
OTHER
IMPORTANT INFORMATION
ABOUT
PURCHASES AND REDEMPTIONS
|
EXCESSIVE
SHORT-TERM TRADING
|
The USAA
Funds generally are not intended as short-term investment vehicles (except for
the money market funds, the USAA Short-Term Bond Fund, and the USAA Tax Exempt
Short-Term Fund). Some investors try to profit by using excessive short-term
trading practices involving mutual fund shares, frequently referred to as
“market timing.”
Excessive
short-term trading activity can disrupt the efficient management of a fund and
raise its transaction costs by forcing portfolio managers to first buy and then
sell portfolio securities in response to a large investment or redemption by
short-term traders. While there is no assurance that the USAA Funds can deter
all excessive and short-term trading, the Board of Trustees of the USAA Funds
has adopted the following policies (except for the money market funds, the USAA
Short-Term Bond Fund, and the USAA Tax Exempt Short-Term Fund). These policies
are designed to deter disruptive, excessive short-term trading without
needlessly penalizing
bona fide
investors.
To deter
such trading activities, the USAA Funds’ policies and procedures
include:
n
Each
fund reserves the right to reject any purchase order, including an exchange,
that it regards as disruptive to the efficient management of the particular
fund.
n
Each
fund may use a fair value pricing service or other model to assist in
establishing the current value of foreign securities held by any of the USAA
Funds. Fair value pricing is used to adjust for stale pricing that may occur
between the close of certain foreign exchanges or markets and the time the USAA
Funds calculate their NAV. Using fair value pricing is intended to deter those
trying to take advantage of time-zone differences in the valuation of foreign
securities and to prevent dilution to long-term investors. Fair value pricing of
a foreign security can result in the USAA Funds’ using a
24 | USAA Extended Market Index Fund
price
that is higher or lower than the closing price of a foreign security for
purposes of calculating a fund’s NAV.
THE
FUNDS’ RIGHT TO REJECT PURCHASE AND EXCHANGE
ORDERS
AND LIMIT TRADING IN ACCOUNTS
The USAA
Funds’ main safeguard against excessive short-term trading is their right to
reject purchase or exchange orders if in the best interest of the affected fund.
In exercising this discretion to reject purchase and exchange orders, the Funds
deem that certain excessive short-term trading activities are not in the best
interest of the Funds because such activities can hamper the efficient
management of the Funds. Generally, persons who engage in an “in and out” (or
“out and in”) transaction within a 30-day period will violate the USAA Funds’
policy if they engage in another “in and out” (or “out and in”) transaction in
the same fund within 90 days. The funds also reserve the right to restrict
future purchases or exchanges if an investor is classified as engaged in other
patterns of excessive short-term trading, including after one large disruptive
purchase and redemption or exchange. Finally, the Funds reserve the right to
reject any other purchase or exchange order in other situations that do not
involve excessive short-term trading activities if it is in the best interest of
the Fund.
The
following transactions are exempt from the excessive short-term trading activity
policies described above:
n
Transactions
in the money market funds, USAA Short-Term Bond Fund, and USAA Tax Exempt
Short-Term Fund;
n
Purchases
and sales pursuant to automatic investment or withdrawal plans;
n
Purchases
and sales made through USAA Strategic Fund Adviser
®
, USAA
Private Investment Management
®
, USAA
College Savings Plan
®
, USAA
Federal Savings Bank Trust Department, or other
designated
USAA managed investment account programs;
n
Purchases
and sales by the USAA institutional shares for use in USAA Target Retirement
Funds; and
n
Other
transactions that are not motivated by short-term trading considerations if they
are approved by transfer agent management personnel and are not disruptive to a
fund.
If a
person is classified as having engaged in excessive short-term trading, the
remedy will depend upon the trading activities of the investor in the account
and related accounts and its disruptive effect, and can
Prospectus | 25
include
warnings to cease such activity and/or restrictions or termination of trading
privileges in a particular fund or all USAA Funds.
The USAA
Funds rely on the transfer agent to review trading activity for excessive
short-term trading. There can be no assurance, however, that its monitoring
activities will successfully detect or prevent all excessive short-term
trading.
The USAA
Funds seek to apply these policies and procedures uniformly to all investors;
however, some investors purchase USAA Fund shares through financial
intermediaries that establish omnibus accounts to invest in the USAA Funds for
their clients and submit net orders to purchase or redeem shares after combining
their client orders. The USAA Funds subject to short-term trading policies
generally treat these omnibus accounts as an individual investor and will apply
the short-term trading policies to the net purchases and sales submitted by the
omnibus account, unless the funds or their transfer agent have entered into an
agreement requiring the omnibus account to submit the underlying trading
information for their clients upon our request and/or monitor for excessive
trading. For those omnibus accounts for which we have entered into agreements to
monitor excessive trading or provide underlying trade information, the financial
intermediary or USAA Funds will review net activity in these omnibus accounts
for activity that indicates potential excessive short-term trading activity. If
we detect suspicious trading activity at the omnibus account level, we will
request underlying trading information and review the underlying trading
activity for individual accounts to identify individual accounts engaged in
excessive short-term trading activity. We will instruct the omnibus account to
restrict, limit, or terminate trading privileges in a particular fund for
individual accounts identified as engaging in excessive short-term trading
through these omnibus accounts.
We also
may rely on the financial intermediary to review for and identify underlying
trading activity for individual accounts engaged in excessive short-term trading
activity, and to restrict, limit, or terminate trading privileges if the
financial intermediary’s policies are determined by us to be at least as
stringent as the USAA Funds’ policy.
Because
of the increased costs to review underlying trading information, the USAA Funds
will not enter into agreements with every financial intermediary that operates
an omnibus account. The USAA Funds or their transfer agent could decide to enter
into such contracts with financial intermediaries for all funds or particular
funds and can terminate such agreements at any time.
26 | USAA Extended Market Index Fund
The Fund
reserves the right to:
n
Reject
or restrict purchase or exchange orders when in the best interest of the
Fund;
n
Limit
or discontinue the offering of shares of the Fund without notice to the
shareholders;
n
Calculate
the NAV per share and accept purchase, exchange, and redemption orders on a
business day that the NYSE is closed;
n
Require
a signature guarantee for transactions or changes in account information in
those instances where the appropriateness of a signature authorization is in
question (the statement of additional information contains information on
acceptable guarantors);
n
Redeem
an account with less than $250, with certain limitations; and
n
Restrict
or liquidate an account when necessary or appropriate to comply with federal
law.
SHAREHOLDER
INFORMATION
|
CURRENT
FUND PRICE AND TOTAL RETURN
|
For the
most current price and total return information for this Fund, you may call the
USAA self-service telephone system. Additionally, you may find the most current
price of your Fund’s shares in the business section of your newspaper in the
mutual fund section under the heading “USAA Group” and the appropriate newspaper
symbol. If you prefer to obtain this information from an online service, you may
do so by using its ticker symbol.
You also
may access this information through our
usaa.com
website once you have established Internet access. In addition, you may see the
Fund’s total return quoted in advertisements and reports. You also may see a
comparison of the Fund’s performance to that of other mutual funds with similar
investment objectives and to relevant indices. You must remember that historical
performance does not necessarily indicate what will happen in the
future.
Prospectus
| 27
The price
at which Fund shares are purchased and redeemed is equal to the NAV per share
determined on the effective date of the purchase or redemption. The NAV per
share is calculated by adding the value of the Fund’s assets (
i.e.
, the value of
its investment in the Fund and other assets), deducting liabilities, and
dividing by the number of shares outstanding. You may buy or sell Fund shares at
the NAV per share without a sales charge. The Fund’s NAV per share is calculated
as of the close of the NYSE (generally 4 p.m. Eastern time) each day that the
NYSE is open for regular trading. The NYSE is closed on most national holidays
and Good Friday.
The
Fund’s investment in the Extended Market Portfolio is valued at the NAV of the
Extended Market Portfolio’s shares held by the Fund, which is calculated on the
same day and time as the Fund. The assets of the Extended Market Portfolio are
valued generally by using available market quotations or at fair value as
determined in good faith by or under the direction of the Extended Market
Portfolio’s Board of Directors.
For
additional information on how securities are valued, see
Valuation
of Securities
in the Fund’s statement of additional
information.
DIVIDENDS
AND OTHER DISTRIBUTIONS
The Fund
pays net investment income dividends annually. Ordinarily, any net realized
capital gain distributions will be paid in December of each year. The Fund may
make additional distributions to shareholders when considered appropriate or
necessary. For example, the Fund could make an additional distribution to avoid
the imposition of any federal income or excise tax.
We will
automatically reinvest all income dividends and capital gain distributions in
additional shares of the Fund unless you request to receive these distributions
by way of EFT. The share price will be the NAV of the Fund shares computed on
the ex-distribution date. Any income dividends or capital gain distributions
made by the Fund will reduce the NAV per share by the amount of the dividends or
other distributions on the ex-distribution date. You should consider carefully
the effects of purchasing shares of the Fund shortly before any dividend or
other distribution. Some or all of these distributions are subject to taxes.
We
will
invest in your account any dividend or other distribution payment returned to us
by your financial institution at the current NAV per share.
28 | USAA Extended Market Index Fund
This tax
information is quite general and refers to the federal income tax law in effect
as of the date of this prospectus. Distributions that shareholders receive from
the Fund are subject to federal income tax and may be subject to state or local
taxes. A 15% maximum federal income tax rate will apply to individual
shareholders through December 31, 2010, for (1) gains on redemptions of Fund
shares held for more than one year and (2) a Fund’s distributions from net gains
on the sale or exchange of the Fund’s capital assets held for more than one year
and from the Fund’s qualified dividend income, which consists of dividends
received from domestic corporations and certain foreign corporations assuming
certain holding period and other requirements are met by the Fund and the
shareholder. Because each investor’s tax circumstances are unique and because
the tax laws are subject to change, we recommend that you consult your tax
adviser about your investment.
Dividends
from net investment income and distributions of the excess of short-term capital
gains over net long-term capital losses are taxable to you as ordinary income,
whether received in cash or reinvested in additional shares. A portion of these
dividends may qualify for the 70% dividends-received deduction available to
corporations and for the maximum 15% tax rate applicable to qualified dividend
income available to individuals.
Regardless
of the length of time you have held Fund shares, distributions of net capital
gains (
i.e.
,
the excess of net long-term gain over net short-term capital loss) that the Fund
realizes are taxable to you as long-term capital gains whether received in cash
or reinvested in additional shares. These gains will qualify for a reduced
capital gains rate for shareholders who are individuals.
Federal
law requires the Fund to withhold (referred to as “backup withholding”) and
remit to the U.S. Treasury 28% of (1) taxable income dividends, capital gain
distributions, and proceeds of redemptions otherwise payable to any
non-corporate shareholder who fails to furnish the Fund with a correct taxpayer
identification number and (2) those dividends and distributions otherwise
payable to any such shareholder who:
n
Underreports
dividend or interest income or
n
Fails
to certify that he or she is not subject to backup withholding.
Prospectus
| 29
To avoid
this withholding requirement, you must certify, on your application or on a
separate IRS Form W-9 supplied by the Fund’s transfer agent, that your taxpayer
identification number is correct and you currently are not subject to backup
withholding.
The Fund
will report information to you annually concerning the tax status of dividends
and other distributions for federal income tax purposes.
Through
our ongoing efforts to help reduce Fund expenses, each household will receive a
single copy of the Fund’s most recent financial reports and prospectus even if
you or a family member owns more than one account in the Fund. However, if you
would like to receive individual copies, please contact us and we will begin
your individual delivery within 30 days of your request.
Log on to
usaa.com
and
sign up to receive your statements, confirmations, financial reports, and
prospectuses via the Internet instead of through the mail.
FINANCIAL
HIGHLIGHTS
The
following financial highlights table is intended to help you understand the
Fund’s financial performance for the past five years. Certain information
reflects financial results for a single Fund share. The total returns in the
table represent the rate that an investor would have earned (or lost) on an
investment in the Fund (assuming reinvestment of all income dividends and
capital gain distributions).
The
information has been audited by Ernst & Young LLP, an independent registered
public accounting firm, whose report, along with the Fund’s financial
statements, are included in the Fund’s annual report, which is available upon
request.
30 | USAA Extended Market Index Fund
|
|
Year
Ended December 31,
|
|
|
2009
|
2008
|
2007
|
2006
|
2005
|
|
Net
asset value at beginning of period
|
$
|
7.53
|
$
|
13.16
|
$
|
13.31
|
$
|
12.10
|
$
|
11.25
|
|
Income
(loss) from investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income
|
|
0.07
|
|
0.11
|
|
0.12
|
|
0.14
|
|
0.08
|
|
Net
realized and unrealized gain
|
|
|
|
|
|
|
|
|
|
|
|
(loss)
on investments and futurestransactions
|
|
2.67
|
|
(5.32)
|
|
0.51
|
|
1.71
|
|
1.06
|
|
Total
from investment operations
|
|
2.74
|
|
(5.21)
|
|
0.63
|
|
1.85
|
|
1.14
|
|
Less
distributions:
|
|
|
|
|
|
|
|
|
|
|
|
From
net investment income
|
|
(0.06)
|
|
(0.11)
|
|
(0.12)
|
|
(0.14)
|
|
(0.08)
|
|
From
realized capital gains
|
|
|
|
(0.31)
|
|
(0.66)
|
|
(0.50)
|
|
(0.21)
|
|
Total
distributions
|
|
(0.06)
|
|
(0.42)
|
|
(0.78)
|
|
(0.64)
|
|
(0.29)
|
|
Net
asset value at end of period
|
$
|
10.21
|
$
|
7.53
|
$
|
13.16
|
$
|
13.31
|
$
|
12.10
|
|
Total
return (%)*
|
|
36.37
|
|
(39.35)
|
|
4.71
|
(b)
|
|
15.31
|
|
10.11
|
|
Net
assets at end of period (000)
|
$
|
$276,245
|
$
|
$194,859
|
$
|
$310,168
|
|
$252,844
|
$
|
$174,199
|
|
Ratios
to average net assets:**
|
|
|
|
|
|
|
|
|
|
|
|
Expenses,
including expenses of the Master Extended Market Index Series
(%)(a)
|
|
0.50
|
|
0.50
|
|
.50
|
(b)
|
|
0.50
|
|
0.50
|
|
Expenses
before reimbursements, including expenses of the
Master
|
|
|
|
|
|
|
|
|
|
|
|
Extended
Market Index Series (%)(a)
|
|
0.96
|
|
0.90
|
|
.79
|
(b)
|
|
0.82
|
|
0.76
|
|
Net investment income (%)
|
|
0.86
|
|
1.08
|
|
0.92
|
|
1.23
|
|
0.84
|
|
Portfolio
turnover (%)***
|
|
21
|
|
33
|
|
33
|
|
24
|
|
18
|
*
Assumes reinvestment of all net investment income and realized capital
gain distributions, if any, during the period. Includes adjustments in
accordance with U.S. generally accepted accounting principles and could differ
from the Lipper reported return.
** For
the year ended December 31, 2009, average net assets were
$224,582,132.
*** Represents
the portfolio turnover of the Master Extended Market Index Series.
(a) Reflects
total operating expenses of the Fund before reductions of any expenses paid
indirectly. The Fund’s expenses paid indirectly decreased the expense ratios by
less than 0.01%.
(b) For
the year ended December 31, 2007, the transfer agent voluntarily reimbursed the
Fund for a portion of the transfer agency fees incurred. The reimbursement had
no effect on the Fund’s total return or ratio of expenses to average net
assets.
Prospectus
| 31
ADDITIONAL
INFORMATION ON
THE DOW
JONES U.S. COMPLETION
TOTAL
STOCK MARKET INDEX
Dow Jones
U.S. Completion Total Stock Market Index is a service mark of Dow Jones &
Company, Inc. Neither Dow Jones nor Dow Jones U.S. Completion Total Stock Market
Index has any relationship to BlackRock Advisors, LLC, or USAA Mutual Funds
Trust.
Dow
Jones and Dow Jones U.S. Completion Total Stock Market Index do
not:
n
Sponsor,
endorse, sell, or promote the Fund.
n
Recommend
that any person invest in the Fund or any other securities.
n
Have
any responsibility or liability for or make any decisions about the timing,
amount, or pricing of the Fund.
n
Have
any responsibility or liability for the administration, management, or marketing
of the Fund.
n
Consider
the needs of the Fund or the owners of the Fund in determining, composing, or
calculating the Dow Jones U.S. Completion Total Stock Market Index or have any
obligation to do so.
32 | USAA Extended
Market Index Fund
|
Neither Dow Jones nor Dow Jones
U.S. Completion Total Stock Market Index will have any liability in
connection with the Fund. Specifically,
Neither
Dow Jones nor Dow Jones U.S. Completion Total Stock Market Index makes any
warranty, express or implied, and Dow Jones and Dow Jones U.S. Completion
Total Stock Market Index disclaim any warranty about:
w
The
results to be obtained by the Fund, the owner of the Fund, or any other
person in connection with the use of the Dow Jones U.S. Completion Total
Stock Market Index and the data included in the Dow Jones U.S. Completion
Total Stock Market Index;
w
The
accuracy or completeness of the Dow Jones U.S. Completion Total Stock
Market Index and any related data;
w
The
merchantability and the fitness for a particular purpose or use of the Dow
Jones U.S. Completion Total Stock Market Index and/or its related
data;
Neither
Dow Jones nor Dow Jones U.S. Completion Total Stock Market Index will have
any liability for any errors, omissions, or interruptions in the Dow Jones
U.S. Completion Total Stock Market Index or related data;
Under
no circumstances will Dow Jones or Dow Jones U.S. Completion Total Stock
Market Index be liable for any lost profits or indirect, punitive,
special, or consequential damages or losses, even if Dow Jones or Dow
Jones U.S. Completion Total Stock Market Index knows that they might
occur.
|
Prospectus |
33
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San
Antonio, Texas 78288
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to request a free copy of the Fund’s statement of additional information (SAI),
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of the market conditions and investment strategies that significantly affected
the Fund’s performance during the last fiscal year. The Fund’s annual and
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To view
these documents, along with other related documents, you may visit the EDGAR
database on the SEC’s Web site (www.sec.gov) or the Commission’s Public
Reference Room in Washington, DC. Information on the operation of the Public
Reference Room may be obtained by calling (202) 551-8090. Additionally, copies
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writing the Public Reference Section of the Commission, Washington, DC
20549-0102.
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