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3 Top-Ranked High-Yield Bond Funds for Strong Income Potential
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High-yield bonds are debt securities issued by corporations that can provide a higher yield than investment-grade bonds but are also riskier investments. These corporate bonds represent debt issued by a firm with the promise to pay interest and return the principal on maturity. Junk bonds are issued by companies with poorer credit quality.
They carry lower credit ratings from the leading credit agencies, usually Ba1 or lower by Moody's, or BB+ or lower by Standard & Poor's or Fitch. 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.
Neuberger Berman Floating Rate Income primarily allocates its net assets to floating-rate securities, loans and other instruments tied to companies that offer exposure to such securities. NFIAX advisors focus on floating-rate, senior-secured loans and below-investment-grade debt, issued in U.S. dollars by both domestic and international issuers.
Neuberger Berman Floating Rate Income has three-year annualized returns of 7%. As of July 2026, NFIAX held 72.8% of its net assets in Total Miscellaneous Bonds.
Fidelity Advisor Capital & Income primarily invests in lower-quality debt, preferred and convertible securities, including distressed issuers, defaulted securities and common stocks, using fundamental analysis of financial health, industry position and economic conditions.
Fidelity Advisor Capital & Income has three-year annualized returns of 11.3%. Mark Notkin has been the fund manager of FAHYX since 2019.
Fidelity High Income primarily invests in income-producing lower-quality debt, preferred and convertible securities, while also holding distressed or defaulted securities and common stocks.
Fidelity High Income has three-year annualized returns of 9.1%. SPHIX has an expense ratio of 0.66%.
View the Zacks #1 Rank List
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3 Top-Ranked High-Yield Bond Funds for Strong Income Potential
High-yield bonds are debt securities issued by corporations that can provide a higher yield than investment-grade bonds but are also riskier investments. These corporate bonds represent debt issued by a firm with the promise to pay interest and return the principal on maturity. Junk bonds are issued by companies with poorer credit quality.
They carry lower credit ratings from the leading credit agencies, usually Ba1 or lower by Moody's, or BB+ or lower by Standard & Poor's or Fitch. 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.
Below, we share with you three top-ranked high-yield bond mutual funds, namely Neuberger Floating Rate Income (NFIAX - Free Report) , Fidelity Advisor Capital & Income (FAHYX - Free Report) and Fidelity High Income (SPHIX - 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 primarily allocates its net assets to floating-rate securities, loans and other instruments tied to companies that offer exposure to such securities. NFIAX advisors focus on floating-rate, senior-secured loans and below-investment-grade debt, issued in U.S. dollars by both domestic and international issuers.
Neuberger Berman Floating Rate Income has three-year annualized returns of 7%. As of July 2026, NFIAX held 72.8% of its net assets in Total Miscellaneous Bonds.
Fidelity Advisor Capital & Income primarily invests in lower-quality debt, preferred and convertible securities, including distressed issuers, defaulted securities and common stocks, using fundamental analysis of financial health, industry position and economic conditions.
Fidelity Advisor Capital & Income has three-year annualized returns of 11.3%. Mark Notkin has been the fund manager of FAHYX since 2019.
Fidelity High Income primarily invests in income-producing lower-quality debt, preferred and convertible securities, while also holding distressed or defaulted securities and common stocks.
Fidelity High Income has three-year annualized returns of 9.1%. SPHIX has an expense ratio of 0.66%.
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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