Conservative investors prefer debt instruments not only
because they safeguard the capital invested but also for the
regular income flows they provide. Bonds bring a great deal of
stability to an equity-heavy portfolio 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
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.
Western Asset Mortgage Backed Securities A
(SGVAX) seeks current return. The fund invests the majority of
its assets in mortgage backed securities. These may be issued by
agencies such as the Government National Mortgage Association
(Ginnie Mae) as well as government sponsored agencies. The
government bond mutual fund returned 7.82% over the last one year
The government bond mutual fund has an expense ratio of 1.02%
compared to a category average of 0.97%.
GMO Inflation Indexed Plus Bond III
(GMITX) invests heavily in inflation-protected securities. The
fund aims to provide total return greater than the Barclays
Capital U.S. Treasury Inflation Notes index. The government bond
mutual fund is non-diversified and returned 14.68% over the last
one year period.
The Fund Manager is Thomas F. Cooper and he has managed this
government bond fund since 2006.
Columbia Inflation Protected Securities A
(APSAX) seeks total return greater than the long term inflation
rate. The fund invests a large share of its assets in inflation
indexed debt securities issued by the U.S. Treasury. The
government bond mutual fund returned 8.19% over the last one year
The government bond mutual fund has an expense ratio of 0.85%
compared to a category average of 0.80%.
American Century Zero Coupon
(BTTTX) invests heavily in zero-coupon securities, mainly in U.S.
Treasury securities and their equivalents. A maximum of 20% of
its assets may be invested in AAA-rated zero-coupon U.S.
government agency securities. The government bond mutual fund
returned 11.22% over the last one year period.
As of September 2012, this government bond mutual fund held 36
issues, with 19.22% of its total assets invested in US Treasury
Sec Stripped Int Pmt.
Direxion Monthly 10 Year Note Bull 2X
(DXKLX) seeks monthly returns which are 2x the returns of the
NYSE Current 10-Year U.S. Treasury Index. The fund invests the
majority of its assets in domestic government securities that may
consist of index and financial securities to create long
positions. It may also invest in short term securities with high
credit quality. The government bond mutual fund returned 12.08%
over the last one year period.
The Fund Manager is Paul Brigandi 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
View All Zacks #1 Ranked Mutual Funds
(APSAX): ETF Research Reports
(BTTTX): ETF Research Reports
(DXKLX): ETF Research Reports
(GMITX): ETF Research Reports
(SGVAX): ETF Research Reports
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