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Top 5 Government Bond Mutual Funds
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ShareThe most cautious of investors usually choose debt as the category they would like to put their faith in. Government bonds represent the most secure investments in this class and represent a natural choice for the risk averse. Mutual funds from this category primarily invest in Treasury bills, notes and securities issued by government agencies. These funds can lend a great deal of stability to an equity heavy portfolio while providing dividends more frequently than individual bonds.
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, then click here.
Fidelity Spartan Long-Term Treasury Bond Index (FLBIX) invests at least 80% of its assets in securities which are part of the Barclays Capital U.S. Long Treasury Bond index. The dollar-weighted average maturity period of the portfolio is at least 10 years or more. The government bond mutual fund returned 2.84% over the last one year period.
The government bond mutual fund has a minimum initial investment of $10,000 and an expense ratio of 0.10% compared to a category average of 0.84%.
Wasatch-Hoisington US Treasury (WHOSX) seeks both capital growth and current income. The fund invests at least 90% of its assets in U.S Treasury securities and repurchase agreements backed by such instruments. The government bond mutual fund has a three year annualized return of 8.2%.
Van Robert Hoisington is the fund manager and has managed this government bond mutual fund since 1996.
T. Rowe Price US Treasury Long-Term (PRULX) invests at least 85% of its assets in U.S Treasury securities. The balances of its funds are used to purchase other securities issued by the U.S. government. The average weighted maturity generally ranges from 15 and 20 years, but may range from 10 to 30 years. The government bond mutual fund has a five year annualized return of 6.4%.
As of June 2011, this government bond mutual fund held 85 issues, with 9.17% of its total assets invested in US Treasury Bond 4.375%.
Vanguard Long-Term Treasury Investor (VUSTX) seeks current income which is appreciable and sustainable. At least 80% of its assets are used to purchase securities issued by the U.S. Treasury, including bills, bond and notes. The government bond mutual fund has a ten year annualized return of 6.53%.
The government bond mutual fund has a minimum initial investment of $3,000 and an expense ratio of 0.22% compared to a category average of 0.84%.
Dreyfus US Treasury Long-Term (DRGBX) invests a substantially high proportion of its assets in securities issued or guaranteed by the U.S. government or its agencies. The fund has an average maturity period of at least 10 years. The government bond mutual fund returned 2.28% over the last one year period.
Robert Bayston is the fund manager and has managed this government bond mutual fund since 2005.
To view the Zacks Rank and past performance of all government bond mutual funds, then click here.
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 full analyst report on FLBIX
Read the full analyst report on WHOSX
Read the full analyst report on PRULX
Read the full analyst report on VUSTX
Read the full analyst report on DRGBX
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| Market Summary | May 26, 2012 14:02 pm ET |
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