Bought into this fund several months ago (this year).......not a big amount. Have to put cash somewhere. The interest rate will be raised by 25 basis points IMO. Subsequent rate increases will be gradual and over a longer time period, I suspect. How will this affect the price of this fund and the yield? Anyone care to explain?
Below we will share with you 4 top rated high yield 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 high yield bond funds, investors can click here to see the complete list of funds.
Vanguard High-Yield Corporate Investor (VWEHX) seeks high current income. The fund invests a lion’s share of its assets in corporate bonds that are believed to provide high yield and are rated below Baa by bond-rating agencies including Moody's. It generally focuses on acquiring "junk bonds" having credit-quality between medium and lower scale. The bonds included in the fund’s portfolio are expected to have maturity durations of short and intermediate term. The high yield mutual fund has a five-year annualized return of 8.2%.