For the average investor, high yield mutual funds are the best
method to invest in bonds rated below investment grade, popularly
known as junk bonds. This is because these funds hold a wide
range of such securities, significantly reducing portfolio risk.
In addition, these funds provide better returns than investments
with higher ratings, including government and corporate bonds.
Further, because the yield from such bonds is higher than
investment grade securities, these investments are less
susceptible to interest rate fluctuations.
Below we will share with you the 5 highest yielding Zacks #1
ranked high yield 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 high
yield funds, investors can
click here to see the complete list of funds.
|
Mutual Fund
|
Sec 30 Day Yield
|
|
Western Asset Global High Yield Bond A
|
7.65%
|
|
Delaware Pooled High-Yield Bond
|
7.22%
|
|
Northern High Yield Fixed Income
|
6.57%
|
|
Delaware High-Yield Opportunities A
|
6.52%
|
|
Putnam High Yield Advantage A
|
6.51%
|
Western Asset Global High Yield Bond A
(SAHYX) invests the majority of its assets in high yield bonds
and related securities. Up to 35% of its assets may also be
utilized to purchase sovereign debt issued by governments from
emerging markets. This high yield mutual fund returned 18.83%
over the last one year period.
S. C. Leech is the fund manager and he has managed this high
yield mutual fund since 2006.
Delaware Pooled High-Yield Bond
(DPHYX) seeks high total return. The fund focuses on investing in
bonds rated investment grade by S&P or other nationally
recognized statistical rating organizations. This high yield
mutual fund returned 17.78% over the last one year period.
The high yield mutual fund has an expense ratio of 0.58%
compared to a category average of 1.12%.
Northern High Yield Fixed Income
(NHFIX) invests a large proportion of its assets in corporate
bonds rated below investment-grade and other fixed-income
securities. The fund focuses on purchasing domestic debt
securities but may also invest in foreign debt instruments. This
high yield mutual fund returned 15.25 % over the last one year
period.
As of December 2012, this high yield mutual fund held 219
issues, with 0.90% of its total assets invested in Entrnmt Pptys
Tr 7.75%.
Delaware High-Yield Opportunities A
(DHOAX) seeks total return. The fund invests in bonds providing
high return with ratings equal to or below "BBB". It may invest
in both domestic and foreign securities issued by governments as
well as in foreign corporate bonds. This high yield mutual fund
returned 17.40% over the last one year period.
Thomas H. Chow is the fund manager and he has managed this
high yield mutual fund since 2012.
Putnam High Yield Advantage A
(PHYIX) invests primarily in bonds issued by domestic companies
rated below investment grade. The maturity period of these
securities must be three years or longer. It may also utilize
derivatives to manage risk or enhance returns. This high yield
mutual fund returned 15.11% over the last one year period.
The high yield mutual fund has an expense ratio of 1.04%
compared to a category average of 1.12%.
To view the Zacks Rank and past performance of all high yield
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.
(DHOAX): ETF Research Reports
(DPHYX): ETF Research Reports
(NHFIX): ETF Research Reports
(PHYIX): ETF Research Reports
(SAHYX): ETF Research Reports
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