Sponsored Links 
Top 5 Government Bond Mutual Funds
Print
ShareFor investors looking at parking their funds with bonds, U.S. government securities are probably the safest possible investments in the category. Default risk is almost non-existent in this case, thought the trade-off is that the yields on such instruments are consequentially lower, a price for the quality of the investments. Moreover, interest payments on many treasury securities are exempt from local and state taxes. Consequentially, mutual funds holding government securities are the safest bond funds and a natural choice for the risk averse.
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.
Rydex Government Long Bond 1.2x Strategy (RYGBX) seeks returns which are 120% of the price movement of U.S. long Treasury bonds. The majority of the funds assets are utilized to purchase U.S. government securities. The government bond mutual fund has a three year annualized return of 8.45%.
The government bond mutual fund has a minimum initial investment of $2,500 and an expense ratio of 0.98% compared to a category average of 0.84%.
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 4.4% over the last one year period.
The Fund Manager is Curt Hollingsworth and he has managed this government bond fund since 2009.
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 7.21%.
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%.
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 7.56%.
As of June 2011, this government bond mutual fund held 86 issues, with 9.17% of its total assets invested in US Treasury Bond 4.375%.
Dreyfus US Treasury Long-Term (DRGBX) seeks current income and capital growth. The fund invests a substantially high proportion of its assets in securities issued or guaranteed by the U.S. government or its agencies. The government bond mutual fund returned 4.2% 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 RYGBX
Read the full analyst report on FLBIX
Read the full analyst report on VUSTX
Read the full analyst report on PRULX
Read the full analyst report on DRGBX
Loading Stories...
|
||||||||||||||
More Zacks Resources
More Zacks Links
| Market Summary | May 26, 2012 14:27 pm ET |
-74.92