CORNERSTONE FUNDS
QUARTERLY COMMENTARY
USAA Cornerstone Equity Fund // USAA Cornerstone Aggressive Fund // USAA Cornerstone
Moderately Aggressive Fund // USAA Cornerstone Moderate Fund // USAA Cornerstone Moderately
Conservative Fund // USAA Cornerstone Conservative Fund
Market Commentary
The world financial markets suffered significant turbulence in the
first three months of 2022, leading to weak performance for all
major categories with the exception of commodities. Russia’s
invasion of Ukraine, which fueled increased uncertainty regarding
both economic growth and corporate profits, was the primary
factor pressuring equity prices. The conflict also caused inflation
expectations to rise by disrupting global supply chains and
contributing to a substantial increase in commodity prices. Crude
oil produced a particularly large gain, dampening the outlook for
consumer spending by leading to a rise in heating and
transportation costs.
The prospect of accelerating inflation, in turn, increased the odds
that the U.S. Federal Reserve (Fed) and other central banks
would be compelled to raise interest rates more aggressively than
investors had been expecting coming into 2022. The Fed indeed
began to tighten policy by ending its stimulative quantitative
easing program and enacting a quarter-point rate hike on March
17--its first in over three years. By the end of the quarter, the
markets appeared to be anticipating as many as seven additional
rate hikes before the end of 2022. This would represent a sharp
reversal from the stimulative policy that was an important driver of
the robust financial market performance in recent years.
These developments led to a meaningful downturn in global
equities. However, markets finished well off of their previous mid-
March lows due to an impressive rally in the second half of the
month. Growth stocks, European equities, and the emerging
markets were notable laggards in the sell-off. On the other hand,
strength in commodity-oriented sectors contributed to sizable
outperformance for the value style. The events of the quarter
weighed heavily on bonds, which had one of the worst quarters in
history. All segments of the asset class suffered losses in
response to the increasingly unfavorable interest rate outlook.
Fund Performance and Positioning
Consistent with the broader investment picture, all Funds in the
Cornerstone Series lost ground in the quarter. All of the Funds
outperformed their primary benchmarks. In addition, with the
exception of Cornerstone Equity Fund, all Funds in the series
outpaced their secondary benchmarks.
The Funds’ negative absolute returns reflect the fact that
diversified investors had few places to hide in the first quarter.
With this said, a number of aspects of the Funds’ positioning
helped performance relative to the secondary benchmarks.
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As of March 31, 2022
First, our portfolios of individual U.S. stocks performed better than
the market as a whole. We are tilted toward the value style over
growth, which was a meaningful positive given sizable
outperformance for the former category.
Our bond portfolios generally experienced smaller losses than the
overall market, helping relative performance in all Funds except
Cornerstone Equity (which has a zero weighting in the category).
We maintained a shorter duration (lower interest-rate sensitivity)
than the secondary benchmarks across the Funds, cushioning
some of the impact of falling bond prices. We retained a cautious
approach in this segment of the portfolio, as we saw limited
upside potential in fixed income at a time of rising interest rates.
We have gradually shifted toward an emphasis on short-dated
corporate bonds, which offer decent yields with a relatively low
degree of interest-rate sensitivity. We have also avoided longer-
term debt, since it offers little to no additional yield relative to
short-term bonds. On the other hand, we sought to capitalize on
the sell-off in high-yield bonds by adding to the category at much
more attractive levels than what was available at the beginning of
the year.
Certain elements of our tactical positioning added value, as well.
An allocation to Canada, which strongly outperformed its
developed market peers, contributed to results in the international
equity portfolio. A position in commodities, including crude oil, was
a further contributor to absolute returns. However, this aspect of
our strategy had a neutral effect in relative terms. We sought to
add some additional inflation protection to the portfolios by
increasing the Funds’ positions in gold and the related equities.
On the negative side, the Funds’ allocation to real estate
investment trusts (REITs)—which was also intended to provide a
measure of protection against inflation—in fact hurt relative
performance. The category’s above-average sensitivity to bond
yields was a headwind given the extent of the sell-off in fixed
income.
The first quarter was a very challenging time even for
conservative, diversified investors. We anticipate further volatility
in the coming months, as the key factors weighing on the markets
recently—inflation, interest rates, and geopolitical issues—all
remain in place. However, we think asset prices have become
somewhat more attractive following the first-quarter downturn. In
this environment, we see value in an approach that emphasizes
diversification and longer-term results, but that also has the
flexibility to capitalize on values that may emerge in periods of
heightened volatility.
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 As of March 31, 2021
CORNERSTONE FUNDS QUARTERLY COMMENTARY As of March 31, 2022

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other important information, visit www.vcm.com/prospectus.
The opinions are as of the date noted and are subject to change at any
Read it carefully before investing.
time due to changes in market or economic conditions. The comments
All investing involves risk, including the potential loss of should not be construed as a recommendation of individual holdings or
principal. market sectors, but as an illustration of broader themes.
Asset allocation and diversification do not promise any level of Discussion based on the Fund share class.
performance or guarantee against loss of principal. The Fund will reflect Holdings, if any, are subject to change without notice and should not be
the risks and incur the expenses of the underlying funds in which it considered purchase recommendations.
invests. The Adviser is subject to conflicts of interest in allocating the Victory Capital Management does not give financial, tax or legal advice,
Fund's assets among affiliated Underlying Funds (the USAA Mutual and nothing contained herein should be construed as such advice.
Funds), unaffiliated Underlying Funds, or a combination of both. The
An index is unmanaged and not available for direct investment;
Adviser may have an incentive to allocate the Fund's assets to those
therefore, its performance does not reflect the expenses associated with
USAA Mutual Funds for which the net advisory fees payable to the
the active management of an actual portfolio.
Adviser are higher than the fees payable by other USAA Mutual Funds,
Victory Capital means Victory Capital Management Inc., the investment
or unaffiliated Underlying Funds. Fixed income securities are subject to
adviser of the Victory Capital mutual funds and USAA Mutual Funds.
interest rate, inflation, credit and default risk. The bond market is volatile.
Victory Capital mutual funds and USAA Mutual Funds are distributed by
Bonds and bond funds will decrease in value as interest rates rise and
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vice versa. Credit risk refers to the possibility that debt issuers may not
Victory Capital. Victory Capital and its affiliates are not affiliated with
be able to make principal and interest payments or may have their debt
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downgraded by ratings agencies. International investments may involve
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differences in generally accepted accounting principles or from economic
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or political instability in other nations. Emerging markets involve
license.
heightened risks related to the same factors as well as increased
©2022 Victory Capital Management Inc.
volatility and lower trading volume. Real estate investment trusts (REITs)
are subject to changes in economic conditions, credit risk and interest V19.133 // 1Q 2022 USAA Cornerstone Funds COM
rate fluctuations. The Fund may frequently change its holdings, resulting
in higher fees, lower returns, and more capital gains. Derivatives may not
work as intended and may result in losses. The value of your investment

Not FDIC Insured • May Lose Value • No Bank Guarantee

20220505-2162291 2