RRisk-averse investors looking to earn steady, regular income may want to consider long-term bond mutual funds. These mutual funds are meant to provide regular income while protecting invested capital. Although mutual funds in this category seek to pay dividends more frequently than individual bonds, they offer greater stability than those that focus primarily on equity securities. Long-term bond funds, with an average maturity between 10 and 30 years, generally offer safer options compared to short- and medium-term funds.
Below, we share with you three of the best long-term government bond funds, namely,Calvert Core Bond Fund Class A CLDAX, Hussman Strategic Total Return Fund HSTRX and Rydex Government Long Bond 1.2x Strategy Fund Investor Class RYGBX. Each earned a Zacks Mutual Fund Ranking #1 (Strong Buy) and are expected to outperform their peers going forward. Investors can click here to view the full list of funds.
Calvert Core Bond Fund Class A invests the majority of its net assets in debt securities denominated in US dollars, foreign debt securities and American Depositary Receipts. CLDAX also invests a small portion of its net assets in lower quality, high yield debt securities, commonly referred to as junk bonds and distressed instruments that are in default.
Calvert Core Bond Fund Class A has three-year annualized returns of 3.2%. At the end of March 2022, CLDAX had 38.60% of its net assets invested in Miscellaneous Bonds.
Hussman Strategic Total Return Fund invests its net assets in fixed income securities, such as treasury bills, notes, treasury bills, treasury inflation-protected securities, US Treasury strips, US government agency securities, etc HSTRX also invests in investment grade debt securities issued by Standard & Poor’s Global, Moody’s Investors Service or other independent rating organizations.
The Hussman Strategic Total Return Fund has three-year annualized returns of 6.7%. HSTRX has an expense ratio of 0.78% compared to the category average of 1.29%.
Rydex Government Long Bond 1.2x Strategy Fund Investor Class invests its assets with borrowings, if any, in fixed income securities issued by the U.S. government as well as derivative instruments, such as futures, interest rate swaps, forwards and contracts stock options. RYGBX seeks investment results equivalent to 120% of the daily price movement of long-term Treasury bonds for US government securities on a daily basis.
Rydex Government Long Bond 1.2x Strategy Fund Investor Class has annualized returns of 0.5% over 10 years. Michael P. Byrum has been one of RYGBX’s fund managers since January 1994.
To view the Zacks ranking and past performance of all long-term government bond funds, investors can click here to view the full list of long-term government bond funds.
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