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Grab These 3 High-Yield Bond Funds for Significant Returns
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High-yield bonds behave more like stocks than investment-grade bonds. These bonds have significant holdings in smaller companies, which are considered to have a weaker financial condition but benefit as the economy moves north. Though 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 headwinds faced in the early months of the pandemic, demand for high yield has recovered since the Fed’s rate cut and the reopening of the economy. The improving economic activity renewed the search for yield, and given the current scenario, these bonds are poised to grow.
Neuberger Berman Floating Rate Income invests most of its net assets in floating-rate securities, loans and other investments in companies that provide investment exposure to such floating-rate securities. NFIAX advisors choose to invest in floating-rate, senior-secured loans and below-investment-grade securities issued in U.S. dollars by U.S. and foreign issuers.
Neuberger Berman Floating Rate Income has three-year annualized returns of 9.3%. As of April 2025, NFIAX held 73.4% of its net assets in Total Miscellaneous Bonds.
Buffalo High Yield invests most of its assets in higher-yielding, higher-risk debt securities rated below investment grade by the major rating agencies, preferably with intermediate-term maturities. BUFHX advisors also invest a small portion of their net assets in investment-grade debt securities, U.S. Treasury Securities, money market funds and equity investments, including dividend-paying stocks, convertible stocks and preferred stocks.
Buffalo High Yield has three-year annualized returns of 9.7%. BUFHX has an expense ratio of 1%.
Virtus Seix Floating Rate High Income invests most of its assets, along with borrowings, if any, in a portfolio of first- and second-lien senior floating-rate loans and other floating-rate debt instruments. SFRAX advisors also invest a small portion of the net assets in senior loans made to non-U.S. borrowers.
Virtus Seix Floating Rate High Income has three-year annualized returns of 8.6%. George Goudelias has been the fund manager of SFRAX since May 2006.
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Grab These 3 High-Yield Bond Funds for Significant Returns
High-yield bonds behave more like stocks than investment-grade bonds. These bonds have significant holdings in smaller companies, which are considered to have a weaker financial condition but benefit as the economy moves north. Though 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 headwinds faced in the early months of the pandemic, demand for high yield has recovered since the Fed’s rate cut and the reopening of the economy. The improving economic activity renewed the search for yield, and given the current scenario, these bonds are poised to grow.
Below we share with you three top-ranked high-yield bond mutual funds, namely Neuberger Berman Floating Rate Income (NFIAX - Free Report) , Buffalo High Yield (BUFHX - Free Report) and Virtus Seix Floating Rate High Income (SFRAX - 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.
Neuberger Berman Floating Rate Income invests most of its net assets in floating-rate securities, loans and other investments in companies that provide investment exposure to such floating-rate securities. NFIAX advisors choose to invest in floating-rate, senior-secured loans and below-investment-grade securities issued in U.S. dollars by U.S. and foreign issuers.
Neuberger Berman Floating Rate Income has three-year annualized returns of 9.3%. As of April 2025, NFIAX held 73.4% of its net assets in Total Miscellaneous Bonds.
Buffalo High Yield invests most of its assets in higher-yielding, higher-risk debt securities rated below investment grade by the major rating agencies, preferably with intermediate-term maturities. BUFHX advisors also invest a small portion of their net assets in investment-grade debt securities, U.S. Treasury Securities, money market funds and equity investments, including dividend-paying stocks, convertible stocks and preferred stocks.
Buffalo High Yield has three-year annualized returns of 9.7%. BUFHX has an expense ratio of 1%.
Virtus Seix Floating Rate High Income invests most of its assets, along with borrowings, if any, in a portfolio of first- and second-lien senior floating-rate loans and other floating-rate debt instruments. SFRAX advisors also invest a small portion of the net assets in senior loans made to non-U.S. borrowers.
Virtus Seix Floating Rate High Income has three-year annualized returns of 8.6%. George Goudelias has been the fund manager of SFRAX since May 2006.
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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