Mutual funds investing in debt securities are among the most
secure investment options which provide regular income while
protecting capital invested. Funds of this nature bring a great
deal of stability to portfolio which a large proportion of equity,
while providing dividends more frequently than individual bonds.
U.S government bonds funds usually invest in Treasury bills, notes
and securities issued by government agencies. They are considered
to be the safest in the bond fund category and are ideal options
for the risk-averse investor.
Below we will share with you 5 top rated 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.
ProFunds US Government Plus
(
GVPSX
) seeks daily returns which are 1.25 times the daily price movement
of the most recently issued Long Bond. The fund purchases domestic
government bonds and derivatives that provide such daily returns.
The government bond mutual fund returned 47.37% over the last one
year period.
The Fund Manager is Michelle Liu and she has managed this
government bond fund since 2009.
T. Rowe Price US Treasury Long-Term
(
PRULX
) invests at least 85% of its assets in U.S Treasury securities.
The fund targets the longer end of the yield curve with the
portfolio weighted average maturity period forecasted in the range
of 15 to 20 years. The government bond mutual fund returned 30.31%
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 0.83%.
Rydex Government Long Bond 1.2x Strategy
(
RYGBX
) seeks returns which are 1.2x the returns of the long dated U.S
Treasury Bonds. The fund invests in a variety of derivative
instruments and U.S Government securities to match its investment
objective. The government bond mutual fund returned 48.61% over the
last one year period.
The Fund Manager is Ryan A. Harder and he has managed this
government bond fund since 2008.
Fidelity Spartan Long-Term Treasury Bond Index
(
FIBAX
) invests the majority of its assets in securities which are part
of the Barclays Capital U.S. 5-10 Year Treasury Bond Index. The
dollar-weighted average maturity period of the portfolio ranges
from three to ten years. The government bond mutual fund returned
10.17% over the last one year period.
As of July 2012, this government bond mutual fund held 57
issues, with 4.77% of its total assets invested in US Treasury Bond
2%.
Dreyfus US Treasury Long-Term
(
DRGBX
) seeks current income and capital growth. The fund invests a
substantially high proportion of its assets in securities issued or
guaranteed by the U.S. government or its agencies. The government
bond mutual fund returned 30.41% over the last one year period.
The government bond mutual fund has a minimum initial investment
of $2,500 and an expense ratio of 0.65% compared to a category
average of 0.83%.
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.
View All Zacks #1 Ranked Mutual Funds
(DRGBX): ETF Research Reports
(FIBAX): ETF Research Reports
(GVPSX): ETF Research Reports
(PRULX): ETF Research Reports
(RYGBX): ETF Research Reports
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