Back to top

Image: Bigstock

3 Best-Rated Long-Term Government Bond Mutual Funds to Buy

Read MoreHide Full Article

Long-term government bond funds are considered to be low-risk investment choices with the longest maturity period. Risk-averse investors who wish for stable returns might consider investing in long-term bond mutual funds. Mutual funds from this category aim to offer better stability than those focused on equity securities and are able to provide dividends more frequently than corporate bonds.

Additionally, long-term bond funds are expected to have average maturity period between 10 years and 30 years and normally offer safer options in comparison to short- and intermediate-term ones. These kinds of government bond funds are generally traded in liquid markets.

Below we will share with you 3 top-rated long-term government bond mutual funds. Each has a Zacks Mutual Fund Rank #1 (Strong Buy)as we expect these mutual funds to outperform peers in the future. To view the Zacks Rank and past performance of all long-term government bond funds, investors can click here to see the complete list of funds.

Fidelity Long-Term Treasury Bond Index Investor invests a major portion 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. Fidelity Long-Term Treasury Bond Index Investor seeks income growth and has returned 10.4% over the last one year.

FLBIX has an expense ratio of 0.20% as compared to category average of 0.53%.

Rydex Government Long Bond 1.2x Strategy Investor (RYGBX - Free Report) invests largely in U.S. government backed fixed income instruments as well as derivative instruments such as future contracts, swaps and options. It seeks 1.2x the return of daily price movement of the Long Treasury Bond for U.S. government instruments. Rydex Government Long Bond 1.2x Strategy Investor is a non-diversified fund and has returned 13.5% over the last one year.

Ryan Harder is one of the fund managers of RYGBX since 2008.

Vanguard Long-Term Treasury Investor (VUSTX - Free Report) seeks growth of income over the long run. VUSTX invests major portion of its assets in U.S. Treasury securities such as bills, bonds, and notes. The fund’s dollar-weighted average maturity is believed to vary between 15 years and 30 years. Vanguard Long-Term Treasury Investor has returned 10.5% over the last one year.

As of Jun 2016, VUSTX held 57 issues, with 4.51% of its assets invested in US Treasury Bond 3.375%.

To view the Zacks Rank and past performance of all long-term government bond funds, investors can click here to see the complete list of 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 >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Rydex Govt Long Bond 1.2x Str Inv (RYGBX) - free report >>

Vanguard Long-Term Treasury Inv (VUSTX) - free report >>

Published in