Back to top

Best of Funds

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

For 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, investors can click here to see the complete list of funds.

Fidelity Spartan Intermediate-Term Treasury Bond Index (FIBAX - MF report) invests a large share of its assets in securities which are part of the Barclays Capital 5-10 Year Treasury Bond index. The dollar-weighted average maturity period of the portfolio ranges from three to ten years. The government bond mutual fund returned 11.88% over the last one year period.

The government bond mutual fund has an expense ratio of 0.10% compared to a category average of 0.96%.

Rydex Government Long Bond 1.2x Strategy (RYGBX - MF report) seeks returns which are 120% of the price movement of U.S. long Treasury bonds. The majority of the fund’s assets are utilized to purchase U.S. government securities and derivatives. The government bond mutual fund returned 47.82% over the last one year period.

As of May 2012, this government bond mutual fund held 7 issues, with 78.18% of its total assets invested in US Treasury Bond 3%.

T. Rowe Price US Treasury Long-Term (PRULX - MF report) invests at least 85% of its assets in U.S Treasury securities. The balances of its funds are used to purchase other securities backed by the credit of the U.S. government. The government bond mutual fund returned 30.82% over the last one year period.

The Fund Manager is Brian J. Brennan and he has managed this government bond fund since 2003.

Dreyfus US Treasury Long-Term (DRGBX - MF report) 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 30.94% over the last one year period.

The government bond mutual fund has a minimum initial investment of $2,500 and an expense ratio of 0.65% compared to a category average of 0.84%.

Vanguard Long-Term Treasury Investor (VUSTX - MF report) utilizes a large share of its assets to purchase securities issued by the U.S. Treasury, including bills, bond and notes. The fund aims at maintaining a weighted average maturity period of 15 to 30 years. The government bond mutual fund returned 31.62% over the last one year period.

The Fund Manager is David R. Glocke and he has managed this government bond fund since 2001.

To view the Zacks Rank and past performance of all 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. Learn more about the Zacks Mutual Fund Rank at http://www.zacks.com/funds.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ANI PHARMACE ANIP 24.83 +14.85%
BITAUTO HOLD BITA 35.20 +14.40%
E HOUSECHINA EJ 10.98 +9.15%
CANADIAN SOL CSIQ 27.02 +7.34%
KNIGHTSBRIDG VLCCF 12.46 +5.41%