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3 Top-Ranked High-Yield Bond Funds With Strong 3-Year Returns
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For an average investor, high-yield bond mutual funds are the best to invest in bonds rated below investment grade, popularly known as junk bonds. This is because these funds hold a wide range of securities that reduce portfolio risk. In addition, these funds provide better returns than investments with higher ratings, including government and corporate bonds. Further, since the yield from such bonds is higher than that of investment-grade securities, they are less susceptible to interest rate fluctuations.
Manning & Napier High Yield Bond Series fund invests most of its net assets in below investment grade and other financial instruments, such as derivative instruments, exchange-traded funds (ETFs) and bank loans, which have similar economic characteristics. MNHYX advisors may also consider investing in U.S. dollar-denominated fixed-income securities issued by U.S. and foreign corporations and governments, including those in emerging markets. MNHYX advisors can also invest in bank loans, which are usually lower-rated floating-rate investments.
Manning & Napier High Yield Bond Series fund has three-year annualized returns of 9.1%. As of the end of December 2025, MNHYX held 26.2% of its net assets in miscellaneous bonds.
Nuveen High Yield Income Fund invests most of its assets, along with borrowings, if any, in below investment grade debt instruments, such as bonds and loans issued by domestic companies and in U.S. dollar-denominated debt issued by foreign companies that is traded over-the-counter or listed on an exchange. NCOAX advisors also invest in unrated bonds, which, according to the fund's portfolio managers, are of similar quality.
Nuveen High Yield Income Fund has three-year annualized returns of 9%. NCOAX has an expense ratio of 1%.
Fidelity Series Floating Rate High Income Fund invests most of its net assets in floating rate loans, lower-quality debt securities, also referred to as high-yield debt securities, companies in distress or uncertain financial condition, money market, investment-grade debt securities, and repurchase agreements. FFHCX advisors invest in both foreign and domestic issues.
Fidelity Series Floating Rate High Income Fund has three-year annualized returns of 8.4%.Chandler Perine has been the fund manager of FFHCX since October 2022.
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3 Top-Ranked High-Yield Bond Funds With Strong 3-Year Returns
For an average investor, high-yield bond mutual funds are the best to invest in bonds rated below investment grade, popularly known as junk bonds. This is because these funds hold a wide range of securities that reduce portfolio risk. In addition, these funds provide better returns than investments with higher ratings, including government and corporate bonds. Further, since the yield from such bonds is higher than that of investment-grade securities, they are less susceptible to interest rate fluctuations.
Below, we share with you three top-ranked high-yield bond mutual funds, namely Manning & Napier High Yield Bond Series (MNHYX - Free Report) , Nuveen High Yield Income Fund (NCOAX - Free Report) and Fidelity Series Floating Rate High Income Fund (FFHCX - 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.
Manning & Napier High Yield Bond Series fund invests most of its net assets in below investment grade and other financial instruments, such as derivative instruments, exchange-traded funds (ETFs) and bank loans, which have similar economic characteristics. MNHYX advisors may also consider investing in U.S. dollar-denominated fixed-income securities issued by U.S. and foreign corporations and governments, including those in emerging markets. MNHYX advisors can also invest in bank loans, which are usually lower-rated floating-rate investments.
Manning & Napier High Yield Bond Series fund has three-year annualized returns of 9.1%. As of the end of December 2025, MNHYX held 26.2% of its net assets in miscellaneous bonds.
Nuveen High Yield Income Fund invests most of its assets, along with borrowings, if any, in below investment grade debt instruments, such as bonds and loans issued by domestic companies and in U.S. dollar-denominated debt issued by foreign companies that is traded over-the-counter or listed on an exchange. NCOAX advisors also invest in unrated bonds, which, according to the fund's portfolio managers, are of similar quality.
Nuveen High Yield Income Fund has three-year annualized returns of 9%. NCOAX has an expense ratio of 1%.
Fidelity Series Floating Rate High Income Fund invests most of its net assets in floating rate loans, lower-quality debt securities, also referred to as high-yield debt securities, companies in distress or uncertain financial condition, money market, investment-grade debt securities, and repurchase agreements. FFHCX advisors invest in both foreign and domestic issues.
Fidelity Series Floating Rate High Income Fund has three-year annualized returns of 8.4%.Chandler Perine has been the fund manager of FFHCX since October 2022.
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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