Top 5 Zacks #1 Ranked Government Bond Mutual Funds - Best of Funds
July 10 2012 - 8:06AM
Zacks
For investors looking at parking their funds with bonds, U.S.
government securities are probably the safest possible investments
in the category. Default risk is almost non-existent in this case,
thought the trade-off is that the yields on such instruments are
consequentially lower, a price for the quality of the investments.
Moreover, interest payments on many treasury securities are exempt
from local and state taxes. Consequentially, mutual funds holding
government securities are the safest bond funds and a natural
choice for the risk averse.
Below we will share with you 5 top rated government bond mutual
funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect
these mutual funds to outperform their peers in the future.
To view the Zacks Rank and past performance of all government bond
funds, investors can click here to see the complete list of
funds.
Fidelity Spartan Intermediate-Term Treasury Bond Index
(FIBAX) invests a large share of its assets in securities which are
part of the Barclays Capital 5-10 Year Treasury Bond index. The
dollar-weighted average maturity period of the portfolio ranges
from three to ten years. The government bond mutual fund returned
11.88% over the last one year period.
The government bond mutual fund has an expense ratio of 0.10%
compared to a category average of 0.96%.
Rydex Government Long Bond 1.2x Strategy (RYGBX) seeks
returns which are 120% of the price movement of U.S. long Treasury
bonds. The majority of the fund’s assets are utilized to purchase
U.S. government securities and derivatives. The government bond
mutual fund returned 47.82% over the last one year period.
As of May 2012, this government bond mutual fund held 7 issues,
with 78.18% of its total assets invested in US Treasury Bond
3%.
T. Rowe Price US Treasury Long-Term (PRULX) invests at
least 85% of its assets in U.S Treasury securities. The balances of
its funds are used to purchase other securities backed by the
credit of the U.S. government. The government bond mutual fund
returned 30.82% over the last one year period.
The Fund Manager is Brian J. Brennan and he has managed this
government bond fund since 2003.
Dreyfus US Treasury Long-Term (DRGBX) seeks current
income and capital growth. The fund invests a substantially high
proportion of its assets in securities issued or guaranteed by the
U.S. government or its agencies. The government bond mutual fund
returned 30.94% over the last one year period.
The government bond mutual fund has a minimum initial investment
of $2,500 and an expense ratio of 0.65% compared to a category
average of 0.84%.
Vanguard Long-Term Treasury Investor (VUSTX) utilizes a
large share of its assets to purchase securities issued by the U.S.
Treasury, including bills, bond and notes. The fund aims at
maintaining a weighted average maturity period of 15 to 30 years.
The government bond mutual fund returned 31.62% over the last one
year period.
The Fund Manager is David R. Glocke and he has managed this
government bond fund since 2001.
To view the Zacks Rank and past performance of all government
bond mutual funds, investors can click here to see the complete
list of funds.
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find
funds that not only outpaced the market in the past but are also
expected to outperform going forward. Learn more about the Zacks
Mutual Fund Rank at http://www.zacks.com/funds.
View All Zacks #1 Ranked Mutual Funds
(DRGBX): ETF Research Reports
(FIBAX): ETF Research Reports
(PRULX): ETF Research Reports
(RYGBX): ETF Research Reports
(VUSTX): ETF Research Reports
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