Zacks #1 Ranked Government Bond Mutual Funds
Government bond mutual funds are considered to be the safest class of investments in the bond fund category. These funds generally hold a portfolio of securities issued by the US Treasury and other government agencies that have negligible default risk. As a result, yields from these instruments are typically low, as are the levels of associated risk. By holding widely diversified portfolios of these instruments, mutual funds contribute significantly to the safety associated with them.
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.
Shelton Short Term US Government Bond (STUSX) seeks high income with low levels of credit risk and liquidity. The fund purchases short and intermediate term securities issued by the U.S. government or its agencies. The fund seeks to maintain a portfolio maturity period ranging from zero to three years. The government bond mutual fund returned 2.90% over the last one year period.
The government bond mutual fund has an expense ratio of 0.59%, compared to a category average of 0.86%.
Homestead Short-Term Government (HOSGX) invests a majority of its assets in fixed-income securities that are backed by the U.S. government. The fund also invests a portion of its assets in municipal bonds, collateralized mortgage obligations, asset-backed securities, corporate bonds and money market securities. The government bond mutual returned 1.76% over the last one year period.
As of March 2013, this government bond mutual fund held 192 issues, with 4.23% of its total assets invested in Overseas Private Invt Corp US Govt Gtd.
Direxion Monthly 10 Year Note Bull 2X (DXKLX) seeks monthly returns that are 2x the returns of the NYSE Current 10-Year U.S. Treasury Index. The fund invests a large share of its assets in domestic government securities that may consist of index and financial securities to create long positions. The government bond mutual fund returned -9.20% over the last one year period.
The Fund Manager is Paul Brigandi and he has managed this government bond fund since 2005.
Western Asset Mortgage Backed Securities A (SGVAX) invests a large share of its assets in mortgage-backed securities issued by government backed institutions such as Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). The government bond mutual fund returned 7.52% over the last one year period.
The government bond mutual fund has an expense ratio of 0.99% compared to a category average of 0.90%.
Rydex Inverse Government Long Bond Strategy (
RYJUX) seeks returns inversely proportional to the daily returns of the Long Treasury Bond for U.S. Treasury debt instruments. A major portion of assets is invested in derivatives. The government bond mutual fund returned 11.13% over the last one year period. The Fund Manager is Michael P. Byrum 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. Read the analyst report on STUSX Read the analyst report on HOSGX Read the analyst report on DXKLX Read the analyst report on SGVAX Read the analyst report on RYJUX
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