Top 5 Zacks#1 Ranked Government Bond Mutual Funds - Best of Funds
13 Marzo 2012 - 12:24PM
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.
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 31.43% over the last one year period.
The government bond mutual fund has a minimum initial investment
of $2,500 and an expense ratio of 0.55% compared to a category
average of 0.84%.
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 31.97% over the last one year period.
As of January 2012, this government bond mutual fund held 25
issues, with 16.09% of its total assets invested in US Treasury
Bond 4.375%.
Fidelity Spartan Long-Term Treasury
Bond Index (FLBIX) invests at least 80% 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. The government bond
mutual fund returned 29.48% over the last one year period.
The Fund Manager is Curt Hollingsworth and he has managed this
government bond fund since 2009.
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 funds
assets are utilized to purchase U.S. government securities and
derivatives. The government bond mutual fund returned 48.28% over
the last one year period.
The government bond mutual fund has a minimum initial investment
of $2,500 and an expense ratio of 0.98% 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 32.55% 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
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