3 Short-Term Government Bonds to Beat Volatile Market Conditions
Below, we share with you three short-term government bond mutual funds VSGBX, GUSTX and HYSAX. Each has earned Zacks Mutual Fund #1 Rank.
Mutual funds investing in debt securities are among the most secure investment options, which provide regular income while protecting the capital invested. Funds that are part of this category bring a great deal of stability to portfolios with a large proportion of equity, while providing dividends more frequently than individual bonds.U.S. government bond funds usually invest in Treasury bills, notes and securities issued by government agencies. Depending on the fund's definition, the short term can be up to five years.Below, we share with you three short-term government bond mutual funds, viz. Vanguard Short-Term Federal Fund (VSGBX - Free Report) , GMO U.S. Each has earned a Zacks Mutual Fund #1 Rank (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.Vanguard Short-Term Federal Fund invests most of its net assets in short-term bonds issued or guaranteed by the U.S. VSGBX seeks to maintain a dollar-weighted average maturity of 1 to 4 years.Vanguard Short-Term Federal Fund has five-year annualized returns of 0.7%. Ryan Kelly has been the fund manager of HYSAX since October 2012.To view the Zacks Rank and the past performance of all short-term government bond mutual funds, investors can click here to see the complete list of short-term government bond mutual funds.Want key mutual fund info delivered straight to your inbox?Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>