Top-Rated Long-Term Government Bond Mutual Funds To Outperform
Conservative investors prefer debt instruments not only because they safeguard the capital invested but also for the regular income flows they provide. Bonds bring a great deal of stability to an equity-heavy portfolio while providing dividends more frequently than individual bonds. U.S government bonds mutual funds usually invest in Treasury bills, notes and securities issued by government agencies. They are considered to be the safest in the bond fund category and are ideal options for the risk-averse investor. Below we will share with you 3 top rated long-term 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 long-term government bond funds, investors can click here to see the complete list of funds . Rydex Government Long Bond 1.2x Strategy Investor (MUTF: RYGBX ) invests largely in U.S. government backed fixed income instruments as well as derivative instruments such as future contracts, swaps and options. It seeks 1.2 times the return of daily price movement of the Long Treasury Bond for U.S. government instruments. This non-diversified government bond mutual fund returned 29.9% over the last one year period. The fund has an expense ratio of 0.97% as compared to category average of 1.50%. Vanguard Long-Term Treasury (MUTF: VUSTX ) seeks a high level of current income which is sustainable. The fund invests a large share of its assets in U.S. Treasury securities such as bills and bonds. It aims to have an average weighted maturity period between 15 to 30 years. This government bond mutual fund returned 20.7% over the last one year period. David R. Glocke is the fund manager and has managed this fund since 2001. Dreyfus US Treasury Long-Term (MUTF: DRGBX ) invests a majority of its assets in U.S. Treasury instruments. It may also invest in other instruments which are approved by the domestic government or issued by its entities. It generally has a duration of more than or equal to 7.5 years and minimum of 10 years of weighted duration of maturity. The fund seeks total return with capital growth and current income. This government bond mutual fund returned 19.8% over the last one year period. As of October 2014, this fund held 20 issues with 12.77% of its assets invested in US Treasury Bond 4.625%. Now that you’ve read this, are you Bullish or Bearish on ? Bullish Bearish Sentiment on ( ) Thanks for sharing your thoughts. Why are you ? Submit & View Results Skip to results » Share this article with a colleague