Top 5 Highest Yielding Zacks #1 Ranked High Yield Bond Mutual Funds
High yield securities are the preferred option for investors who have a reasonable appetite for risk and who are willing to forgo equity growth for current income. This category of securities comprise of corporate bonds of low quality, convertible securities and preferred stock, all of which carry a significant amount of risk. Mutual funds are a prudent method to invest in this class of funds as they significantly reduce the risk involved by holding a well diversified portfolio. Such funds may also seek capital appreciation as a secondary objective.
Below we will share with you the 5 highest yielding Zacks #1 ranked high yield 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 funds, investors can click here to see the complete list of funds.
Mutual Fund | Sec 30 Day Yield |
Consulting Group High Yield Investments | 8.94% |
Legg Mason Western Asset High Yield Bond A | 7.65% |
Virtus High Yield A | 7.22% |
Northern High Yield Fixed Income | 7.2% |
Lord Abbett High Yield A | 7.11% |
Consulting Group High Yield Investments (THYUX) seeks current income. The fund invests a large share of its assets in domestic high yield fixed income securities rated below investment grade. A maximum of 20% of its assets may be utilized to purchase foreign securities. This high yield mutual fund returned 15.14% over the last one year period.
The high yield mutual fund has a minimum initial investment of $100 and an expense ratio of 0.81% compared to a category average of 1.13%.
Western Asset Global High Yield Bond A (SAHYX) invests the majority of its assets in high yield bonds and related securities. Up to 35% of its assets may also be utilized to purchase sovereign debt issued by governments from emerging markets. This high yield mutual fund returned 14.86% over the last one year period.
S. C. Leech is the fund manager and he has managed this high yield mutual fund since 2006.
Delaware Pooled High-Yield Bond (DPHYX) seeks high total return. The fund focuses on investing in bonds rated investment grade by S&P or other nationally recognized statistical rating organizations. This high yield mutual fund returned 15.31% over the last one year period.
The high yield mutual fund has an expense ratio of 0.59% compared to a category average of 1.13%.
Northern High Yield Fixed Income (NHFIX) invests a large proportion of its assets in corporate bonds rated below investment-grade and other fixed-income securities. The fund focuses on purchasing domestic debt securities but may also invest in foreign debt instruments. This high yield mutual fund returned 13.03% over the last one year period.
As of September 2012, this high yield mutual fund held 233 issues, with 0.75% of its total assets invested in Amerigroup 7.5%.
Lord Abbett High Yield A (LHYAX) seeks high current income and the prospect for capital growth. The fund invests the majority of its assets in junk bonds, including those issued by companies and convertible securities. Not more than 20% of its assets are utilized to purchase foreign securities. This high yield mutual fund returned 13.93% over the last one year period.
Steven F. Rocco is the fund manager and he has managed this high yield mutual fund since 2010.
To view the Zacks Rank and past performance of all high yield 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 THYUX
Read the analyst report on SAHYX
Read the analyst report on DPHYX
Read the analyst report on NHFIX
Read the analyst report on LHYAX
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