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3 Long-Term Government Bond Funds to Add to Your Portfolio
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Long-term government bond funds have an average maturity period between 10 and 30 years, and generally offer safer options in comparison to short and mid-term ones. While mutual funds from this category seek to provide dividends more frequently than individual bonds, they offer greater stability than those primarily focusing on equity securities. Hence, risk-averse investors looking to earn a stable and regular income may consider long-term bond mutual funds. These mutual funds are believed to provide regular income while protecting the capital invested.
Hussman Strategic Total Return Fund invests mainly in fixed-income securities, such as U.S. Treasury bonds, strips, notes and bills, treasury inflation-protected securities and investment-grade corporate debts rated BBB or higher by S&P's Global Ratings or BAA or higher by Moody's Investors Service, etc. HSTRX has returned 4.2% over the past three years.
HSTRX has an expense ratio of 0.75% compared with the category average of 1.29%.
Calvert Core Bond Fund Class A invests most of its net assets in U.S. dollar-denominated debt securities, foreign debt securities and American Depositary Receipts. CLDAX also invests a small portion of its net assets in below-investment-grade high-yield debt instruments, commonly known as junk bonds and distressed instruments that are in default. CLDAX has returned 2.1% over the past three years.
Vishal Khanduja has been one of the fund managers of CLDAX since 2013.
Vanguard Long Term Treasury Fund invests the majority of its net assets in U.S. Treasury securities. The advisor expects to maintain a dollar-weighted average maturity of 15 to 30 years. VUSTX has returned 1.1% over the past five years.
VUSTX has 8.9% of its assets invested in Total Misc Bonds.
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3 Long-Term Government Bond Funds to Add to Your Portfolio
Long-term government bond funds have an average maturity period between 10 and 30 years, and generally offer safer options in comparison to short and mid-term ones. While mutual funds from this category seek to provide dividends more frequently than individual bonds, they offer greater stability than those primarily focusing on equity securities. Hence, risk-averse investors looking to earn a stable and regular income may consider long-term bond mutual funds. These mutual funds are believed to provide regular income while protecting the capital invested.
Below, we share with you three top-ranked long-term government bond funds, namely Hussman Strategic Total Return Fund (HSTRX - Free Report) , Calvert Core Bond Fund Class A (CLDAX - Free Report) and Vanguard Long Term Treasury Fund (VUSTX - Free Report) . Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.
Hussman Strategic Total Return Fund invests mainly in fixed-income securities, such as U.S. Treasury bonds, strips, notes and bills, treasury inflation-protected securities and investment-grade corporate debts rated BBB or higher by S&P's Global Ratings or BAA or higher by Moody's Investors Service, etc. HSTRX has returned 4.2% over the past three years.
HSTRX has an expense ratio of 0.75% compared with the category average of 1.29%.
Calvert Core Bond Fund Class A invests most of its net assets in U.S. dollar-denominated debt securities, foreign debt securities and American Depositary Receipts. CLDAX also invests a small portion of its net assets in below-investment-grade high-yield debt instruments, commonly known as junk bonds and distressed instruments that are in default. CLDAX has returned 2.1% over the past three years.
Vishal Khanduja has been one of the fund managers of CLDAX since 2013.
Vanguard Long Term Treasury Fund invests the majority of its net assets in U.S. Treasury securities. The advisor expects to maintain a dollar-weighted average maturity of 15 to 30 years. VUSTX has returned 1.1% over the past five years.
VUSTX has 8.9% of its assets invested in Total Misc Bonds.
To view the Zacks Rank and the past performance of all long-term government bond funds, investors can click here to see the complete list of long-term government bond funds.
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