Top 5 Zacks #1 Ranked Government Bond Mutual Funds - Best of Funds
February 27 2012 - 8:11AM
Zacks
Government bond mutual funds are considered to be the safest
class of investments in the bond fund category. These funds
generally hold a portfolio of securities issued by the US Treasury
and other government agencies which are backed by the full faith
and credit of the US government. Yields from these instruments are
typically low but the associated risk is also much smaller. In
addition, many of these instruments are exempt from state and local
taxes. By holding widely diversified portfolios of these
investments, mutual funds contribute significantly to the safety
associated with them.
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.
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 Fund Manager is Donald T. Ellenberger and he has managed
this government bond fund since 2005.
Wasatch-Hoisington US Treasury (WHOSX) invests at least
90% of its assets in U.S Treasury securities and repurchase
agreements backed by such instruments. The fund also purchases long
term U.S. Treasury Bonds, including zero coupon Treasury
securities. The government bond mutual fund returned 46.23% over
the last one year period.
The government bond mutual fund has a minimum initial investment
of $2,000 and an expense ratio of 0.75% compared to a category
average of 0.84%.
Federated US Government Bond (FEDBX) seeks total return.
The fund focuses on acquiring U.S. government securities as well as
treasury securities and related derivatives. It also invests in
mortgage-backed securities issued or backed by the U.S. government.
The government bond mutual fund returned 18.99% over the last one
year period.
As of October 2011, this government bond mutual fund held 19
issues, with 12.47% of its total assets invested in United States
Treasury Note, 2.000%, 11/15/2021.
JPMorgan Government Bond A (OGGAX) utilizes a large share
of its assets to purchase bonds issued by the U.S. Government and
its agencies. The average weighted maturity period of its portfolio
ranges between 3 to 15 years. The government bond mutual fund
returned 11.04% over the last one year period.
The Fund Manager is Michael J. Sais and he has managed this
government bond fund since 1996.
ISI Total Return US Treasury (TRUSX) seeks both capital
growth and current income, which is a secondary objective. The fund
invests the majority of its assets in U.S Treasury securities and
repurchase agreements backed by such instruments. The government
bond mutual fund returned 9.99% over the last one year period.
The government bond mutual fund has a minimum initial investment
of $5,000 and an expense ratio of 0.84% compared to a category
average of 0.99%.
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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