For investors looking at parking their funds with bonds, U.S.
government securities are probably the safest possible investments
in the category. Default risk is almost non-existent in this case,
thought the trade-off is that the yields on such instruments are
consequentially lower, a price for the quality of the investments.
Moreover, interest payments on many treasury securities are exempt
from local and state taxes. Consequentially, mutual funds holding
government securities are the safest bond funds and a natural
choice for the risk averse.
Below we will share with you the 5 highest yielding Zacks #1
ranked government bond mutual funds. Each has earned a
Zacks #1
Rank
(Strong Buy) as we expect these mutual funds to outperform their
peers in the future. To view the Zacks Rank and past
performance of all government bond funds, investors can
click here to see the complete list of funds
.
|
Mutual Fund
|
Sec 30 Day Yield
|
|
Wasatch-Hoisington US Treasury
|
2.65%
|
|
Vanguard Long-Term Treasury Investor
|
2.28%
|
|
Fidelity Spartan Long-Term Treasury Bond Index
|
2.28%
|
|
T. Rowe Price US Treasury Long-Term
|
2.27%
|
|
Federated US Government Bond
|
1.86%
|
Wasatch-Hoisington US Treasury
(WHOSX) invests at least 90% of its assets in U.S Treasury
securities and repurchase agreements backed by such instruments.
The fund also purchases long term U.S. Treasury Bonds. The
government bond mutual fund returned 46.03% over the last one year
period.
The government bond mutual fund has a minimum initial investment
of $2,000 and an expense ratio of 0.75% compared to a category
average of 0.84%.
Vanguard Long-Term Treasury Investor
(VUSTX) seeks high and sustainable current income. The fund
utilizes a large share of its assets to purchase securities issued
by the U.S. Treasury, including bills, bond and notes. The
government bond mutual fund returned 32.36% over the last one year
period.
The Fund Manager is David R. Glocke and he has managed this
government bond fund since 2001.
Fidelity Spartan Long-Term Treasury Bond Index
(FLBIX) invests a large share of its assets in securities which are
part of the Barclays Capital U.S. Long Treasury Bond index. The
dollar-weighted average maturity period of the portfolio is at
least 10 years or more. The government bond mutual fund returned
32.29% over the last one year period.
As of June 2012, this government bond mutual fund held 39
issues, with 5.56% of its total assets invested in US Treasury Bond
3.75%.
T. Rowe Price US Treasury Long-Term
(PRULX) seeks high income along with credit protection. The fund
invests at least 85% of its assets in U.S Treasury securities. The
balances of its funds are used to purchase other securities backed
by the credit of the U.S. government. The government bond mutual
fund returned 31.43% over the last one year period.
The government bond mutual fund has a minimum initial investment
of $2,500 and an expense ratio of 0.55% compared to a category
average of 0.84%.
Federated US Government Bond
(FEDBX) focuses on acquiring U.S. government securities as well as
treasury securities and related derivatives. It also invests in
mortgage-backed securities issued or backed by the U.S. government.
The government bond mutual fund returned 23.33% over the last one
year period.
The Fund Manager is Donald T. Ellenberger and he has managed
this government bond fund since 2005.
To view the Zacks Rank and past performance of all government
bond mutual funds, investors can
click here to see the complete list of funds
.
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find
funds that not only outpaced the market in the past but are also
expected to outperform going forward. Learn more about the Zacks
Mutual Fund Rank at
http://www.zacks.com/funds
.
(FEDBX): ETF Research Reports
(FLBIX): ETF Research Reports
(PRULX): ETF Research Reports
(VUSTX): ETF Research Reports
(WHOSX): ETF Research Reports
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