We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
3 Short-Term Government Bond Funds for Mitigating Risk
Read MoreHide Full Article
Mutual funds investing in 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 portfolios with a large proportion of equity, while providing dividends more frequently than individual bonds. U.S. government bond funds usually invest in Treasury bills, notes and securities issued by government agencies. They are considered the safest in the bond fund category and are ideal for risk-averse investors.
A short-term government bond fund is a mutual fund that is limited by its investment objectives and fund bylaws to investing primarily in short-term obligations of the federal government or its agencies. This makes it an ideal option for investors looking for the safety net of investing in government bonds. Depending on the fund's definition, short term can be up to five years.
Empower Short Duration Bond Fund invests most of its assets in investment-grade bonds. MXSDX advisors actively manage a portfolio of corporate bonds, asset-backed securities, commercial and residential mortgage-backed securities, U.S. treasuries, and agency securities. The fund has returned 1.7% over the past five years.
As of March 2023, MXSDX had 59.2% of its assets invested in TOTAL MISC BONDS.
Lord Abbett Short Duration Income Fund seeks a high level of income consistent with the preservation of capital by investing primarily in various types of short-duration debt securities. LALDX invests the majority of its net assets in investment-grade debt securities, securities issued or guaranteed by the U.S. government, and inflation-linked investments. The fund has returned 0.8% over the past five years.
Robert A. Lee has been one of the fund managers of LALDX since 1998.
Vanguard Short Term Federal Fund invests the majority of its assets in short-term bonds issued or guaranteed by the U.S. Government, and its agencies and instrumentalities, many of which are not backed by it. VSGBX is expected to maintain a dollar-weighted average maturity of 1 to 4 years. The fund has returned 1% over the past five years.
VSGBX has an expense ratio of 0.20% compared with the category average of 0.64%.
Image: Bigstock
3 Short-Term Government Bond Funds for Mitigating Risk
Mutual funds investing in 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 portfolios with a large proportion of equity, while providing dividends more frequently than individual bonds. U.S. government bond funds usually invest in Treasury bills, notes and securities issued by government agencies. They are considered the safest in the bond fund category and are ideal for risk-averse investors.
A short-term government bond fund is a mutual fund that is limited by its investment objectives and fund bylaws to investing primarily in short-term obligations of the federal government or its agencies. This makes it an ideal option for investors looking for the safety net of investing in government bonds. Depending on the fund's definition, short term can be up to five years.
Below we share with you three top-ranked short-term government bond mutual funds, namely Empower Short Duration Bond Fund (MXSDX - Free Report) , Lord Abbett Short Duration Income Fund (LALDX - Free Report) and Vanguard Short Term Federal Fund (VSGBX - Free Report) . Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.
Empower Short Duration Bond Fund invests most of its assets in investment-grade bonds. MXSDX advisors actively manage a portfolio of corporate bonds, asset-backed securities, commercial and residential mortgage-backed securities, U.S. treasuries, and agency securities. The fund has returned 1.7% over the past five years.
As of March 2023, MXSDX had 59.2% of its assets invested in TOTAL MISC BONDS.
Lord Abbett Short Duration Income Fund seeks a high level of income consistent with the preservation of capital by investing primarily in various types of short-duration debt securities. LALDX invests the majority of its net assets in investment-grade debt securities, securities issued or guaranteed by the U.S. government, and inflation-linked investments. The fund has returned 0.8% over the past five years.
Robert A. Lee has been one of the fund managers of LALDX since 1998.
Vanguard Short Term Federal Fund invests the majority of its assets in short-term bonds issued or guaranteed by the U.S. Government, and its agencies and instrumentalities, many of which are not backed by it. VSGBX is expected to maintain a dollar-weighted average maturity of 1 to 4 years. The fund has returned 1% over the past five years.
VSGBX has an expense ratio of 0.20% compared with the category average of 0.64%.
To view the Zacks Rank and the past performance of all short-term government bond mutual funds, investors can click here to see the complete list of short-term government bond mutual funds.
Want key mutual fund info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>