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3 Zacks Rank #1 Short-Term Government Bond Mutual Funds
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A short-term government bond fund is a mutual fund that’s limited by its investment objectives and fund bylaws to investing primarily in short-term obligations of the federal government or its agencies. Depending on the fund’s definition, short term can be up to five years.
Meanwhile, mutual funds investing in government debt securities are among the most secure investment options that provide regular income while protecting the capital invested. Funds that are part of this category bring a great deal of stability to a portfolio with a large proportion of equity, while providing dividends more frequently than individual bonds. Hence, they are considered the safest in the bond fund category and are ideal options for risk-averse investors.
Vanguard Short-Term Treasury Investor (VFISX - Free Report) seeks current income with minimum price volatility. VFISX invests a large share of its assets in U.S. Treasury instruments such as bills, bonds, and notes. The fund seeks to maintain a dollar-weighted average maturity between 1 and 4 years. Vanguard Short-Term Treasury Investor has a three-year annualized return of 0.9%.
Gemma Wright-Casparius is the fund manager since January 2015.
API Multi-Asset Income L (AFFIX - Free Report) invests primarily in equity or debt securities when the adviser believes attractive investment opportunities exist. AFFIX seeks current income with limited credit risk. API Multi-Asset Income L has a three-year annualized return of 0.9%.
As of June 2016, AFFIX held 237 issues, with 1.98% of its assets invested in Two Harbors Investment Corp.
Fidelity Spartan Short-Term Treasury Bond Index Investor invests a major portion of its assets in securities included in the Barclays U.S. 1-5 Year Treasury Bond Index. FSBIX uses statistical tools such as duration, maturity, interest rate sensitivity, security structure, and credit quality to imitate the returns of the index. Fidelity Spartan Short-Term Treasury Bond Index Investor has a three-year annualized return of 1.3%.
FSBIX has an expense ratio of 0.2% as compared to the category average of 0.59%.
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. Pick the best mutual funds with the Zacks Rank.
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3 Zacks Rank #1 Short-Term Government Bond Mutual Funds
A short-term government bond fund is a mutual fund that’s limited by its investment objectives and fund bylaws to investing primarily in short-term obligations of the federal government or its agencies. Depending on the fund’s definition, short term can be up to five years.
Meanwhile, mutual funds investing in government debt securities are among the most secure investment options that provide regular income while protecting the capital invested. Funds that are part of this category bring a great deal of stability to a portfolio with a large proportion of equity, while providing dividends more frequently than individual bonds. Hence, they are considered the safest in the bond fund category and are ideal options for risk-averse investors.
Below we will share with you three top rated short-term government bond mutual funds. Each has earned a Zacks Mutual Fund #1 Rank (Strong Buy) and is expected to outperform its peers in the future. To view the Zacks Rank and past performance of all short-term government bond mutual funds, investors can click here to see the complete list of funds.
Vanguard Short-Term Treasury Investor (VFISX - Free Report) seeks current income with minimum price volatility. VFISX invests a large share of its assets in U.S. Treasury instruments such as bills, bonds, and notes. The fund seeks to maintain a dollar-weighted average maturity between 1 and 4 years. Vanguard Short-Term Treasury Investor has a three-year annualized return of 0.9%.
Gemma Wright-Casparius is the fund manager since January 2015.
API Multi-Asset Income L (AFFIX - Free Report) invests primarily in equity or debt securities when the adviser believes attractive investment opportunities exist. AFFIX seeks current income with limited credit risk. API Multi-Asset Income L has a three-year annualized return of 0.9%.
As of June 2016, AFFIX held 237 issues, with 1.98% of its assets invested in Two Harbors Investment Corp.
Fidelity Spartan Short-Term Treasury Bond Index Investor invests a major portion of its assets in securities included in the Barclays U.S. 1-5 Year Treasury Bond Index. FSBIX uses statistical tools such as duration, maturity, interest rate sensitivity, security structure, and credit quality to imitate the returns of the index. Fidelity Spartan Short-Term Treasury Bond Index Investor has a three-year annualized return of 1.3%.
FSBIX has an expense ratio of 0.2% as compared to the category average of 0.59%.
To view the Zacks Rank and past performance of all short-term 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. Pick the best mutual funds with the Zacks Rank.