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Top 5 Highest Yielding Government Bond Mutual Funds
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ShareMutual funds investing in debt securities are among the most secure investment options which provide regular income while protecting capital invested. Funds which are part of this category 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, then click here.
| Mutual Fund | SEC Yield |
| T. Rowe Price U.S. Treasury Long-Term | 3.77% |
| Vanguard Long-Term Treasury Investor | 3.42% |
| Fidelity Spartan Long-Term Treasury Bond Index | 3.27% |
| Transamerica Partners IPS | 3.10% |
| Fidelity Spartan Intermediate-Term Treasury Bond | 2.64% |
T. Rowe Price US Treasury Long-Term (PRULX) seeks high income. The fund 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 returned 19.83% over the last one year period.
The Fund Manager is Brian J. Brenna and he has managed this government bond fund since 2003.
Vanguard Long-Term Treasury Investor (VUSTX) utilizes at least 80% of its assets to purchase securities issued by the U.S. Treasury, including bills, bond and notes. The average maturity period of the portfolio varies between 15 to 30 years. The government bond mutual fund has a ten year annualized return of 8%.
As of September 2011, this government bond mutual fund held 74 issues, with 8.91% of its total assets invested in US Treasury Bond 6.25%.
Fidelity Spartan Long-Term Treasury Bond Index (FLBIX) seeks high current income. The fund invests at least 80% of its assets in securities which are part of the Barclays Capital U.S. Long Treasury Bond index. The government bond mutual fund returned 21.21% over the last one year period.
The government bond mutual fund has an expense ratio of 0.10% compared to a category average of 0.84%.
Transamerica Partners IPS (DVIGX) invests the majority of its assets in inflation-protected securities and related investments. The fund utilizes an underlying mutual fund to purchase these securities which are instruments issued by the U.S. government and its agencies. The government bond mutual fund has a three year annualized return of 11.11%.
Martin Hegarty is the fund manager and has managed this government bond mutual fund since 2010.
Fidelity Spartan Intermediate-Term Treasury Bond Index (FIBAX) seeks high current income. The fund invests at least 80% of its assets in securities which are part of the Barclays Capital U.S. 5-10 Year Treasury Bond index. The government bond mutual fund returned 7.66% over the last one year period.
The government bond mutual fund has an expense ratio of 0.10% compared to a category average of 0.98%.
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 PRULX
Read the full analyst report on VUSTX
Read the full analyst report on FLBIX
Read the full analyst report on DVIGX
Read the full analyst report on FIBAX
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| Market Summary | May 26, 2012 17:11 pm ET |
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