Top 5 Highest Yielding Zacks #1 Ranked Government Bond Mutual Funds
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.
Mutual Fund | Sec 30 Day Yield |
PIMCO Real Return A | 4.27% |
Western Asset Mortgage Backed Securities A | 2.77% |
Franklin Real Return A | 2.73% |
Hussman Strategic Total Return | 1.22% |
VALIC Company I Inflation Protected | 0.33% |
PIMCO Real Return A (PRTNX) seeks high real return. The fund invests heavily in bonds issued by U.S. and foreign governments and related agencies which provide returns higher than the inflation rate over a business cycle. It predominantly invests in securities rated investment grade. The government bond mutual fund returned 8.72% over the last one year period.
The government bond mutual fund has a minimum initial investment of $1,000 and an expense ratio of 0.85% compared to a category average of 0.80%.
Western Asset Mortgage Backed Securities A (SGVAX) 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 7.90% over the last one year period.
The Fund Manager is Stephen Walsh and he has managed this government bond fund since 2006.
Franklin Real Return A (FRRAX) seeks total return higher than the inflation rate over a business cycle. The fund utilizes a large share of its assets to purchase investment grade debt instruments. A maximum of 20% of its assets may be invested in debt instruments rated below investment grade. The government bond mutual fund returned 3.68% over the last one year period.
As of December 2012, this government bond mutual fund held 229 issues, with 10.62% of its total assets invested in US Treasury Note 1.25%.
Hussman Strategic Total Return (HSTRX) invests heavily in fixed income instruments. These instruments are primarily securities issued by the U.S. Treasury, including bills, bond and notes. It may also invest in Treasury inflation-protected securities (TIPS). The government bond mutual fund returned 1.17% over the last one year period.
The government bond mutual fund has a minimum initial investment of $1,000 and an expense ratio of 0.63% compared to a category average of 0.91%.
VALIC Company I Inflation Protected (VCTPX) 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 8.03% over the last one year period.
The Fund Manager is Amit Agrawal and he has managed this government bond fund since 2009.
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.
Read the analyst report on PRTNX
Read the analyst report on SGVAX
Read the analyst report on FRRAX
Read the analyst report on HSTRX
Read the analyst report on VCTPX
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