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3 High-Yield Bonds Mutual Funds for Consistent Returns
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High-yield bonds behave more like stocks than investment-grade bonds. These bonds have significant holdings in smaller companies and are considered to have a weaker financial condition but benefit as the economy moves north.
Although high-yield bonds are more exposed to credit risk, these have less exposure to interest rate risk, making them a differentiated source of return. Despite the headwinds faced due to the Fed’s monetary policy tightening, these bonds are poised to grow on the central bank’s indications that it might slow down its steep rate of hikes.
Fidelity Advisor Floating Rate Hi Inc Fund seeks a high level of current income by investing most of its assets in floating-rate loans and other floating-rate securities. FFRAX also invests its assets in securities of foreign and domestic issuers.
Fidelity Advisor Floating Rate Hi Inc Fund has three-year annualized returns of 5.8%. FFRAX has an expense ratio of 0.97% compared with the category average of 1.03%.
Manning & Napier High Yield Bond Fund invests the majority of its net assets in investment-grade bonds, derivative instruments and exchange-traded funds. MNHYX also invests a portion of its net assets in bank loans, which are, generally, non-investment grade floating rate investments.
Manning & Napier High Yield Bond Fund has three-year annualized returns of 4.1%. As of June 2023, MNHYX had 2.6% of its assets invested in Tutor Perini Corp.
Credit Suisse Floating Rate Hi Inc Fund seeks high current income and, secondarily, capital appreciation by investing primarily in a diversified portfolio of high-yield and high-risk fixed-income securities (junk bonds). CHICX also invests in securities of non-U.S. issuers.
Credit Suisse Floating Rate Hi Inc Fund has three-year annualized returns of 4.8%. Wing Chan has been one of the fund managers of CHICX since October 2005.
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3 High-Yield Bonds Mutual Funds for Consistent Returns
High-yield bonds behave more like stocks than investment-grade bonds. These bonds have significant holdings in smaller companies and are considered to have a weaker financial condition but benefit as the economy moves north.
Although high-yield bonds are more exposed to credit risk, these have less exposure to interest rate risk, making them a differentiated source of return. Despite the headwinds faced due to the Fed’s monetary policy tightening, these bonds are poised to grow on the central bank’s indications that it might slow down its steep rate of hikes.
Below, we share with you three top-ranked high-yield bond mutual funds, viz., Fidelity Advisor Floating Rate Hi Inc Fund (FFRAX - Free Report) , Manning & Napier High Yield Bond Fund (MNHYX - Free Report) and Credit Suisse Floating Rate Hi Inc Fund (CHICX - 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.
Fidelity Advisor Floating Rate Hi Inc Fund seeks a high level of current income by investing most of its assets in floating-rate loans and other floating-rate securities. FFRAX also invests its assets in securities of foreign and domestic issuers.
Fidelity Advisor Floating Rate Hi Inc Fund has three-year annualized returns of 5.8%. FFRAX has an expense ratio of 0.97% compared with the category average of 1.03%.
Manning & Napier High Yield Bond Fund invests the majority of its net assets in investment-grade bonds, derivative instruments and exchange-traded funds. MNHYX also invests a portion of its net assets in bank loans, which are, generally, non-investment grade floating rate investments.
Manning & Napier High Yield Bond Fund has three-year annualized returns of 4.1%. As of June 2023, MNHYX had 2.6% of its assets invested in Tutor Perini Corp.
Credit Suisse Floating Rate Hi Inc Fund seeks high current income and, secondarily, capital appreciation by investing primarily in a diversified portfolio of high-yield and high-risk fixed-income securities (junk bonds). CHICX also invests in securities of non-U.S. issuers.
Credit Suisse Floating Rate Hi Inc Fund has three-year annualized returns of 4.8%. Wing Chan has been one of the fund managers of CHICX since October 2005.
To view the Zacks Rank and the past performance of all high-yield bond funds, investors can click here to see the complete list of high-yield bond funds.
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