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 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.
Sec 30 Day Yield
Wasatch-Hoisington US Treasury
Fidelity Spartan Long-Term Treasury Bond Index Fidelity Advantage
Vanguard Long-Term Treasury Investor
T. Rowe Price US Treasury Long-Term
Direxion Monthly 10 Year Note Bull 2X
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 0.83%.
Fidelity Spartan Long-Term Treasury Bond Index Fidelity Advantage (FLBAX) 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 19.54% over the last one year period.
As of August 2012, this government bond mutual fund held 39 issues, with 5.28% of its total assets invested in US Treasury Bond 3.75%.
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 31.27% over the last one year period.
The Fund Manager is David R. Glocke and he has managed this government bond fund since 2001.
T. Rowe Price US Treasury Long-Term (PRULX) 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 19.41% over the last one year period.
The government bond mutual fund has a minimum initial investment of $2,500 and an expense ratio of 0.55% compared to a category average of 0.83%.
Direxion Monthly 10 Year Note Bull 2X (DXKLX) seeks monthly returns twice as much as that of the NYSE Current 10-Year U.S. Treasury Index. The fund takes long positions by investing heavily in domestic government securities that make up the index. The government bond mutual fund returned 14.88% 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 at http://www.zacks.com/funds.
More From Zacks.com
- Investment & Company Information
- mutual funds
- government bonds