Top 5 Zacks #1 Ranked Government Bond Mutual Funds - Best of Funds
December 04 2012 - 11:58AM
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.
JPMorgan Real Return A (RRNAX) seeks high inflation
protected return. It predominantly utilizes its assets to purchase
Treasury Inflation Protected Securities (TIPS). It may also invest
in derivatives. A maximum of 15% of its assets may be invested in
inflation related securities issued by foreign governments. The
government bond mutual fund returned 7.63% over the last one year
period.
The government bond mutual fund has an expense ratio of 0.75%
compared to a category average of 0.80%.
Direxion Monthly 10 Year Note Bull 2X (DXKLX) invests the
majority of its assets in domestic government securities that may
consist of index and financial securities to create long positions.
It may also invest in short term securities with high credit
quality. The government bond mutual fund returned 11.24% over the
last one year period.
The Fund Manager is Paul Brigandi and he has managed this
government bond fund since 2005.
Wasatch-Hoisington US Treasury (WHOSX) seeks return
higher than the inflation rate over a business cycle. The fund
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. The government bond mutual
fund returned 12.23% over the last one year period.
As of September 2012, this government bond mutual fund held 18
issues, with 13.68% of its total assets invested in US Treasury
Bond Stripped Prin Pmt.
American Century Zero Coupon (BTTTX) invests heavily in
zero-coupon securities, mainly in U.S. Treasury securities and
their equivalents. A maximum of 20% of its assets may be invested
in AAA-rated zero-coupon U.S. government agency securities. The
government bond mutual fund returned 11.24% over the last one year
period.
The government bond mutual fund has an expense ratio of 0.56%
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 12.70% over the last one year
period.
The Fund Manager is Ryan A. Harder 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/mutual-funds.php.
View All Zacks #1 Ranked Mutual Funds
(BTTTX): ETF Research Reports
(DXKLX): ETF Research Reports
(RRNAX): ETF Research Reports
(RYGBX): ETF Research Reports
(WHOSX): ETF Research Reports
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