Top 5 Zacks #1 Ranked Government Bond Mutual Funds - Best of Funds
August 14 2012 - 9:56AM
Zacks
The economic and political turmoil in the debt plagued Eurozone
area has caused a risk aversion climate among investors, thereby
increasing the demand for ‘safe haven’ investment avenues such as
Government Bonds. This has caused a decent rally in the Government
Bond market in the recent past leading to plummeting yields near
their all time lows. Moreover, given the sluggish economic growth
in most developed and emerging markets coupled with policy inaction
from central banks, it is clear that the ‘flight to safety’ for
investors is here to stay for quite some time. Government Bond
mutual funds, with their diversified exposure provide stability of
capital invested along with a scope of earning regular interest
income.
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 which have the
maximum credit protection backed by the Federal Government. The
fund targets the longer end of the yield curve with the portfolio
weighted average maturity period forecasted in the range of 15 to
20 years. The government bond mutual fund returned 31.43% over the
last one year period.
The Fund Manager is Brian J. Brennan and he has managed this
government bond fund since 2003.
Fidelity Spartan Long Term Treasury Bond Index (FLBIX)
seeks high levels of current income by investing at least 80% of
its assets in securities in the Barclays Capital U.S. Long Treasury
Bond Index. The fund strives for a dollar-weighted average maturity
of 10 years or more. The government bond mutual fund returned
32.29% over the last one year period.
The government bond mutual fund has a minimum initial investment
of $10,000 and an expense ratio of 0.20% compared to a category
average of 0.82%.
Rydex Government Long Bond 1.2x Strategy (RYGBX) seeks
returns which are 1.2x the returns of the long dated U.S Treasury
Bonds. The fund invests in a variety of derivative instruments and
U.S Government securities to match its investment objective. The
government bond mutual fund returned 49.36% over the last one year
period.
As of July 2012, this government bond mutual fund held 7 issues,
with 68.40% of its total assets invested in US Treasury Bond
3%.
Vanguard Long-Term Treasury Investor (VUSTX) targets the
longer end of the yield curve and invests in securities issued by
the U.S. Treasury. The fund aims at maintaining a weighted average
maturity period of 15 to 30 years thereby making the fund more
sensitive to interest rate movements. The government bond mutual
fund returned 32.36% over the last one year period.
The government bond mutual fund has a minimum initial investment
of $3,000 and an expense ratio of 0.20% compared to a category
average of 0.82%.
Dreyfus US Treasury Long-Term (DRGBX) seeks to maximize
total returns by investing in at least 80% of its net assets in the
U.S Treasury securities. The fund has an effective duration of 7.5
years and seeks to maintain a portfolio weighted average maturity
of more than or equal to 10 years. The government bond mutual fund
returned 31.94% over the last one year period.
The Fund Manager is Robert Bayston and he has managed this
government bond fund since 2008.
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
(FLBIX): ETF Research Reports
(PRULX): ETF Research Reports
(RYGBX): ETF Research Reports
(VUSTX): ETF Research Reports
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